Automobile parts and accessories industry sales revenue increased by 32.03 percent year-on-year, the growth rate dropped by 3.3 percentage point margin fell 0.08 percentage point, but the total industry profits grew by 36.28 percent, higher than the revenue growth. We believe that this should be attributed to the industry during a very effective cost control. In addition, tire and rubber industry sales revenue increased 12.56 percent, but profit growth was only 11.42 percent, lower than the revenue growth, we believe that this gross margin decline was mainly due to the result.

       At present the valuation of auto parts industry is relatively reasonable. PE from the point of view, A-share market auto parts enterprises to 20.47 times the average PE, and the Americas, Europe and the Asia-Pacific mature types of enterprises with the average PE of 16.7 times, respectively, 12.9 times and 10.8 times. From the perspective of the PB, A-share market auto parts enterprises was 2.17 times the average PB, and the Americas, Europe and the Asia-Pacific mature types of enterprises with the average PB was 1.77 times, 2.47 times and 1.26 times. The current valuation are relatively reasonable but has not underestimated, given a rating of automotive components segment.