Plastic board and bar for fund-raising projects: the pearl on the engineering plastic crown, striving to create a leader in the subdivision field in 3-5 years. 1) Market space: plastic plate and bar products are widely used in automobiles, home appliances, consumer electronics, construction units and other fields because of their advantages such as wear resistance, vibration resistance, corrosion resistance, recyclability, high strength and so on. The total sales revenue of plastic plate and bar in China in 2019 was 330 billion yuan, compared with developed countries in Europe and the United States, the domestic market competition pattern is more scattered, before 2019, the income of the six head enterprises accounted for only 0.35% of the market share. 2) Development trend: at the policy level, key policies to support the development of the material industry continue to land; consumption upgrading, lightweight cars, new energy vehicles, household appliances to replace steel acceleration plate bar products promotion; import substitution, technological progress and transformation and upgrading create opportunities for the development of domestic enterprises, so multiple favorable factors catalyze and enhance the prosperity of the industry. 3) the company's goal: after the completion of the fund-raising project, the monthly production capacity will exceed 1500 tons, which is 300% of the production capacity before the fund-raising project, through the introduction of automatic and intelligent special engineering plastic extrusion plate and bar production equipment, to build a high-quality and intelligent production line and production workshop, the company strives to become a domestic leading enterprise in the field of plate and bar within 3-5 years.

Modified engineering plastics for fund-raising projects: product formulation is the core barrier, and the company has the advantages of industry understanding and research and development. The modification of plastic materials is to improve the properties of the original plastics by filling, toughening, strengthening, blending, alloying and other technical means, using general, engineering or special engineering plastics as the main raw materials, all kinds of organic and inorganic fillers and functional auxiliaries as auxiliary materials. to meet the needs of different application fields. Because of its customized characteristics, the formulations of all kinds of high-performance and professional modified plastics are controlled by the leading enterprises in the subdivision field. As a material supply chain solution service provider, the company has accumulated a deep understanding of the industry and a variety of core material formulations in the 20 years of ploughing the industry. can ensure product quality, reduce comprehensive costs, provide full-process technical services, strengthen inventory management. After the completion of the engineering plastics modification project and the construction of the R & D center, the company will realize the transformation from the application development of materials to the development of basic formulations of materials, with independent formulation systems of spray-free, 5G materials, lightweight materials, wear-resistant materials and biomaterials; at the same time, create a scientific injection molding + injection molding industry 4.0 application and development center to reduce the cost of the industrial chain.

Core competence: customer resources + project experience + first-mover advantage + flexible production to create a leader in the plasticizing industry. 1) Channel advantages and customer resources: upstream raw materials and downstream brands are world-renowned enterprises; 2) project experience and industry understanding: customized solutions can be provided for different segments of the market; 3) first to enter the market segment: dig deep downstream customer pain points, choose to intervene in the early stage of project development; 4) inventory management and flexible production: from order acquisition to product listing to improve the overall efficiency of the supply chain The company's core competitive advantage is highlighted, and it is expected to create a leader in the plasticizing industry.

Profit forecast and investment rating: we maintain the forecast that the company's EPS in 2021-2023 will be 0.42,0.82,1.38 yuan respectively, and PE will be 59,31,18 times respectively. We are optimistic about the market in the field of plate and bar in our country, and the company maintains a "buy" rating as an industry leader.

Risk hint: the risk that market demand is lower than expected; the risk of insufficient supply of raw materials and rising prices; the lower-than-expected risk of easing trade friction between China and the United States