Published Time:2011.08.18 News source:Danyang Liwang Vehicle Parts CO.,LTD Views No.

June passenger cars wholesale data (Automobile Association) an increase of 12%, better than market expectations. Although we believe that in June there is a certain degree of artificially high wholesale data (indicators for assessing the pressure dealers six months), but the combination of relatively good data on the card and the terminal end of July to resume production of Japanese companies gradually completed, we think the basic bottom end of the industry boom.
We note the recent introduction of the automobile industry to encourage the media on policy discussions, even though the policy has not yet appeared face substantial incentives, but the psychological impact on investors is positive: in the foreseeable future, considering the car as the national economy and local government fiscal revenue important pillar industries, continue to raise the possibility of tightening has not; Looking ahead, even if standards are to improve energy efficiency car allowance, the disturbance will be mainly reflected in the second half of the month, less impact on total annual sales ; maintain passenger plates relative to investment advice optimistic that passenger plates in the next 2-3 months there will still be more likely to get excess returns: from a cautious perspective on the current valuation is at a safe range of plate below, less downward pressure on valuations; continuous improvement in industry fundamentals will provide greater support to enhance the valuation; the recent downward price adjustments, to a certain extent, weakened the market excess returns for high short-term sector concerns.
Differentiation in the context of the industry boom, we still emphasize automotive structural investment opportunities, we recommend investors focus has underestimated the value and performance of high-quality growth companies with certainty: Shanghai Automotive has the best quality currently two joint venture companies, existing car type of strong performance will further enhance the profitability of the company, the future introduction of incentives will further enhance investors' expectations of steady growth performance of the company; Yueda investment: The company will benefit from superior performance and SUV models with high-end models to enhance profitability.
Risk Warning: the macroeconomic impact of changes in demand for automotive terminals, and further coded so that the policy does not reach the expected sales volume, market systemic risk.

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