Auto Parts and Accessories Industry: income, profit growth gap narrowed. 07 January-November, the auto parts industry revenue, profit growth rates were 37.45 percent, 68.61 percent, since the renewal of 06 since the operation of the economy in particular the growth of profits, since 03 set a new high since. 08 January-February, the auto parts industry revenue, profit growth was 31.1 percent, 37.32 percent, down profit growth rate of larger, but still higher than the revenue growth.

Auto Parts and Accessories Industry: gross margins steady. 06,07 in January-November, 08 January-February, the auto parts industry margins were 14.64%, 14.95%, 15.38%, a slight increase trend, early 08's gross margin performance slightly better than we expected, However, in line with our future of automotive parts industry as a whole "profit stabilize" the judgement. We maintain the 08 auto parts industry gross margins around 15 percent of pre-judgement.

Auto Parts and Accessories Industry: 08 Q1 growth rate of exports dropped significantly. 07 of China's automotive parts industry export amount of 28.5 billion U.S. dollars, up 35.3%; 08 Q1 automotive parts exports from 7.3 billion U.S. dollars, an increase of 23.73 percent, significantly down. As the auto parts exports mainly to developed countries, the developed countries economic slowdown, China's sustained appreciation of the renminbi and the upgrading of domestic labor costs have increased pressure on exports. We remain at the previously reported in the export growth is still expected to remain at 20% -25% level, export revenues accounted about 30 percent of points of view.

Auto Parts and Accessories listed companies: poor representation, 08 Q1 gross margin slightly down. And statistics for the 7586 Auto Parts and Accessories business compared to 31 poor representation of automotive parts enterprises. 07 and 08 Q1, automotive parts company listed on the smooth growth in operating income, respectively 22.20 percent and 22.70 percent, but net profit growth of larger changes, respectively 86.56 percent and 25.51 percent. Gross margin, 07 to 16.53 percent, 1.33 percentage points year-on-year increase; 08 Q1 to 16.18 percent, compared with 07 dropped 0.35 percent.

Automobile tires listed companies: benefit from product price increases. 6 automobile tires listed companies 07, 08 Q1 revenue growth was 22.56 percent, 18.70 percent and net income growth of 924.37 percent, respectively, 42.52 percent. 07 gross margin 13.41 percent, up 2.62 percentage points; 08 Q1 to 12.22 percent, Central fell. 07-08 Q1 net profit in maintaining rapid growth is mainly due to domestic listed companies to benefit from increases in the prices of tyres, according to the China Petroleum and Chemical Industry Association data, 07,08 Q1 domestic tyre prices rose 4.35 percent, 3.48 percent.

Automobile spare parts industry rating downgraded to "neutral", concerns three types of investment opportunities. In the investment strategy, the proposals concern 1) a rapid growth of the company: Ningbo Huaxiang, 2) the international competitiveness of the company: Fuyao Glass 3) to benefit from trade policy, energy conservation and environmental protection with the concept of the company: Weifu Transtech Services. Are maintained on the company's holdings rating. Another proposal concerned Fengshen shares and Wanfeng Aowei. There are major risks: market systemic risk, industry cycle fluctuation risks, raw material price volatility, exchange rate risk and export risks for integration with the company expected, we remind the integration of special effects did not reach the expected cash flow and potential risks.