Event: Jiuri Xincai released the 2021 annual report, during the reporting period, the company achieved operating income of 1.252 billion yuan, an increase of 23.83% over the same period last year; net profit of 166 million yuan, an increase of 21.15% over the same period last year, and 126 million yuan of non-return net profit, an increase of 42.45% over the same period last year. Of this total, 2021Q4 achieved a single-quarter operating income of 358 million yuan, an increase of 17.85 percent over the same period last year, an increase of 34.90 percent over the same period last year; a net profit of 58 million yuan, an increase of 154.20 percent and an increase of 134.86 percent over the same period last year; and a net profit of 54 million yuan, an increase of 488.54 percent and 263.30 percent, respectively. At the same time, the company released its quarterly report for 2022, with revenue of 423 million yuan, an increase of 35.84% over the same period last year, a net profit of 55 million yuan, an increase of 43.22%, and a non-return net profit of 48 million yuan, an increase of 81.57%.

Coverage for the first time, giving a "prudent overweight" investment rating. The company is the largest and most comprehensive photoinitiator production supplier in the country. Shandong, Changzhou and Hunan currently have a production capacity of 18800 tons, while Inner Mongolia and Huaihua bases are under construction with a capacity of 31600 tons, focusing on the global operation and development strategy. constantly enrich product lines and increase market share. With the development of domestic panel and integrated circuit industry, the demand for photosensitizer is increasing continuously. the company's subsidiary Dajing Information 600 tons photosensitizer project will become the domestic pioneer after it is put into production. We are optimistic that the company will enhance its R & D strength through the introduction of talents to fill the domestic gaps in the fields of photoresist raw materials and other semiconductor electronic and chemical materials. For the first time, it covers the profit forecasts we gave the company with EPS of 1.75,2.35,2.80 yuan respectively from 2022 to 2024, and gave it a "prudent overweight" rating.

Risk hints: the risk that the project construction progress is not as expected; the risk of intensified competition in the photoinitiator industry; the risk that the development of semiconductor materials is not as expected.