The core driving force of the company's counter-cyclical growth is the first-class downstream customers, and the company's major shareholders have recently bought back nearly 300 million yuan of shares, demonstrating confidence in future development. Main points of investment:

8. The target price is 6.6 yuan, giving the "overweight" rating for the first time. The company's main products include chassis system, environmental system, steering and transmission system, complete product line, covering commercial vehicles and passenger cars. Among the downstream customers, FAW Group accounts for about 80% of the company's sales revenue, among which FAW Jiefang and FAW-Volkswagen have the first market share in the field of heavy trucks and passenger cars, respectively, and high-quality downstream customers establish the company's profitability. It is estimated that the company's EPS will be 0.55 EPS 0.62 lap from 2019 to 2021.Huayu Automobile,FAW Fuwei), give the company 12 times PE in 2019, with a target price of 6.60 yuan.

9. After 2015, the growth rate of revenue scale of the company is better than that of the industry, and it has developed rapidly. From 2016 to 2018, the company's operating income growth rate was + 35%, + 23%, 9% respectively, significantly higher than the parts industry growth rate of + 15%, + 4%,-13%. 2018, 2019Q1 auto industry sales growth slowed down, year-on-year growth was negative. The company is expanding against the trend. The growth rates of 2018/2019Q1 revenue and non-return profit are + 9.2%, 35.2%, 2.2%, 5.5%, respectively. The performance is beautiful and stands out. It shows good pressure resistance and leading effect.

10. New products are rich in reserves and open up new growth points. Since 2018, the company has obtained new projects such as oil pumps, inverters and heat pump air conditioners on Volkswagen's MEB platform, and some of its products are global suppliers of Volkswagen. The value and gross profit margin of new energy automobile parts are slightly higher than those of traditional cars, which can enhance the competitiveness and profitability of the company. In addition, the company improves the electric layout by adding aluminum and magnesium lightweight chassis components, new energy vehicle structural components, and creating electric drive assembly system products.

11. Catalyst: Volkswagen new energy vehicle sales climb.

twelve。 Risk hint: macroeconomic growth slows down, car sales growth slows down