1. Main Ideas This week's investment advice: Based on the mild recovery of the automotive industry in 2012 and the slow decline in the industry's profitability rate, investors are advised to focus on related companies that may benefit from the overall listing of FAW Group, such as FAW Car and FAW Xiali; Affected by the earthquake, the profit base of Tianjin Intime in 2011 was low, and it is recommended to pay attention to FAW-Five; the competitive pattern of the passenger car industry is relatively stable, and it is concerned with the leading company Yutong Bus.

The car segment fell. Passenger car segment fell 3.97%, commercial passenger car segment fell 3.95%, auto parts segment fell 3.25%, commercial truck segment fell 1.33%, automotive service segment fell 0.72%.

Key announcements last week:

1) Jiangling Motors: 2012H1 achieved operating revenue of 8.722 billion yuan, a year-on-year decrease of 5.52%; net profit attributable to shareholders of listed companies was 841 million yuan, a year-on-year decrease of 22.01%, achieving EPS of 0.97 yuan.

2) SAIC Group: 2012H1 achieved an operating income of 235.561 billion yuan, an increase of 10.13% over the same period of the previous year, and a net profit attributable to the parent company of 10.784 billion yuan, a year-on-year increase of 5.08%, achieving an EPS of 0.98 yuan.

3) Weichai Power: 2012H1 achieved operating income of 27.06 billion yuan, a year-on-year decrease of 26.12%, achieving net profit attributable to the parent company of 1.897 billion yuan, a year-on-year decrease of 45.82%, achieving EPS 1.14 yuan.

Key industry information last week:

1) In the first half of the year, car companies received over 1.3 billion government subsidies. The 11 listed companies that mainly manufacture passenger cars in China have enjoyed a total of 1.313 billion yuan in government subsidies. Geely Automobile (subsidized 634 million yuan), BYD (subsidized 220 million yuan), SAIC (subsidized 143 million yuan), and Changan Automobile (subsidized 100 million yuan). Other car companies also enjoyed government subsidies of 10 million yuan.

2) Young people purchase nearly 30% of Spyker shares. Spyker Motors signed a memorandum of cooperation with Zhejiang Youth Automotive Group, which invested 10 million euros in purchasing 29.9% of Spyker. At the same time, Young Motors will invest another 25 million euros in Spyker P2PB with Spyker. V joint venture company, young cars accounted for 75% of shares.