A leading enterprise in the coal machinery industry, the company that has transformed into the new energy vehicle industry chain is a leading supplier of high-end coal machine equipment in China, mainly comprehensive mining machinery and equipment for coal mines, and ranks among the country's leaders in the industry. The company began seeking transformation this year. By setting up Hefei to enter the NEV three-electric vehicle business, the company is expected to benefit from the boom in the NEV industry chain. Jointly with AVIC New Energy, the company invested 51 million yuan (51%) in April 2016, the company invested 51 million yuan (51%) with Hefei Xingyao, the Hefei Chuangda Management Technology Team, and the China Aviation New Energy Technology Research Institute to jointly establish Hefei Chuangda to implement the first phase of the NEV three-power project and complete the first phase of the NEV battery pack (corresponding to 16,000 sets) and 30,000 motors and controllers, marking the formal transformation of the NEV field. With the implementation of a new version of the subsidy adjustment policy, logistics vehicles are expected to be released in the second half of the year, while China Aviation New Energy is speeding up production capacity investment and is expected to grow into a leading domestic electric distribution vehicle, benefiting profoundly from the explosion of logistics vehicles. The company's customers are tied to China Aviation New Energy. If production is successfully started and 30,000 units are shipped next year, the corresponding profit could reach 130 million yuan, increasing the upward elasticity of performance. Traditional coal machines have gradually bottomed out, and the company has been steadily developing coal machine products for more than ten years. The coal mining machine business ranked first in the country, and the tunneling machine business ranked first in the country, and the tunneling machine business ranked in the top three. The company's coal machinery products all maintain a gross profit margin of more than 40%, supporting the company's ROE above the industry average, and leading the country in profitability. The coal machine replacement cycle will likely lead to an increase in replacement demand next year. At the same time, the company is involved in a new financial leasing model to jointly help coal machine sales rebound. Transforming the new energy vehicle three electric vehicle business, giving buyers and rating companies based on the traditional coal engine business, and teaming up with China Aviation New Energy to transform the new energy vehicle PACK and motor electronic control business, it is expected that production capacity will be released next year to seize the industry's high growth opportunities. The company's 2016-2018 EPS is expected to be 0.21, 0.35, and 0.46 yuan/share, giving a buying rating. The risk suggests that at present, the company's Sandian business has not contributed profits. If production capacity cannot be invested as scheduled, performance will fall short of expectations, dragging down the company's transformation progress; subsidies for new energy vehicles may decline or have an impact on sales volume, which in turn has an adverse impact on the company's downstream demand.