GLONGHUI July 11丨Dongwu Securities Research Report pointed out that Foton Motor (600166.SH) has had 20 years of ups and downs in the commercial vehicle industry, and the industrial chain has covered many lines in parallel. Commercial vehicles and core powertrain components are fully self-developed and self-produced, with a total vehicle/engine production capacity of about 80/600,000 units, respectively, and the leading position in the industry is stable. The company focuses on the light truck business. The commercial vehicle market is recovering as a whole, and the company has blossomed more. Furthermore, in markets such as Europe, Japan, South Korea, Latin America, and Southeast Asia, we are making an all-out effort to expand the entire automotive value chain business, and export sales have continued to increase, with remarkable results. It is estimated that the company's total operating revenue from 2023 to 2025 will be 598.59,72,635/87.266 billion yuan, and net profit attributable to the parent company is 1,427/21.52/2,821 billion yuan, +2092%/+51%, respectively. The corresponding EPS is 0.18/0.27/0.35 yuan, and the corresponding PE is 20/13/10 times. Three A-share commercial vehicle companies were selected as comparable companies, with an average valuation of 20/12/9 times. Given that Foton Motor's commercial vehicle business coverage is complete, profits remain stable, and its long-term new energy sector layout continues to gain strength, it is believed that Foton Motor should enjoy higher valuation premiums, cover it for the first time, and give it a “buy” rating.