Incidents: Wuyang Parking released its 2019 annual performance report. During the reporting period, the company achieved total operating income of 1,271 million yuan, up 26.88% year on year; operating profit of 178 million yuan, up 21.51% year on year; total profit of 177 million yuan, up 23.17% year on year; net profit attributable to shareholders of listed companies was 161 million yuan, up 22.86% year on year, in line with the forecast range; and basic earnings per share of 0.22 yuan. Commenting on infrastructure shortfalls increased demand for parking equipment. The company's overall business development improved according to the established business plan in 2019. The performance of the garage sector grew steadily, and the company's current orders were full. The company fully resumed work on February 10. The delay in civil construction commencement due to the epidemic in the first quarter may have an impact on equipment installation confirmation, but as monetary policy stimulus increases, the countercyclical structural shortfall repair industry policy may catalyze demand for parking equipment. Parking garages are an important direction for repairing shortcomings in new infrastructure in various regions, and the urban parking and charging industry chain is in the dividend release stage of market demand and policy strength. The acquisition of Changan Parking helped the parking lot management business company complete the acquisition of Changan Parking in January '20. As a professional operator of commercial parking lots, Changan Parking operates and manages a number of well-known landmark buildings and super-high-rise projects, which can help Wuyang (currently operating more than 250,000 parking spaces) quickly enter the operation and management process of commercial parking lots, achieve the expansion of Wuyang Parking from parking equipment production to parking lot operation, and accelerate the integrated operation of the entire industry chain. The application for the non-public offering of shares for a company with increased equipment production capacity was approved by the China Securities Regulatory Commission on January 7, and the issuance of no more than 143 million new shares was approved by the China Securities Regulatory Commission on January 7. The company is expanding its parking operations and increasing the release of production capacity. This private fundraising plan is to add 40,000 units/year of three-dimensional parking equipment production capacity at its bases in Xuzhou and Dongguan, further improve the research and development of intelligent products and three-dimensional garage industry connectivity, enhance the company's overall R&D capabilities, and seize resource opportunities by expanding the scale effect. The approval of this fixed increase will increase the production capacity of parking equipment, which will help ensure the company's medium- to long-term development strategy of closely arranging “intelligent manufacturing+parking resources+Internet”. Profit forecasts and valuations expect the company to achieve net profit of 161 million yuan, 233 million yuan and 329 million yuan in 2019-2021, an increase of 23.13%, 44.22%, and 41.38% over the previous year, corresponding to the current valuation of 2020 by 21 times. Considering that the urban parking industry is in a stage of rapid growth where market demand and policy dividends are released, and that the company has outstanding advantages in the gradually maturing three-dimensional garage industry, has strong growth potential, and maintains a “buy” rating. Risks suggest that the macroeconomic downturn brings risks such as worsening capital liquidity, major changes in industrial policy, or sharp increases in raw material prices.