We select reasonable valuation references from four perspectives of international companies of the same type, international auto parts industry, “BRIC†auto parts industry and AH premium. We believe that the selection of internationally renowned commercial vehicle and engine equipment companies is relatively reasonable. Considering that the company's business has always become the main engine and the heavy-duty vehicle business, we have given it a 12x P/E ratio, and the reasonable value is about 56.4 yuan. We use DCF and DDM absolute valuation method to calculate the company's price range of 89.4 yuan -121.69 yuan and 43.14 yuan - 82.62 yuan. Considering comprehensively, combined with the current price, we give the company a Buy rating and set the company's target price for the year at 56.4 yuan.
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