The company (002263) announced on January 31, 2011, that it plans to privately issue no more than 152 million shares, raise no more than 1.35 billion yuan, and invest in three projects: high temperature resistant ultra-thin capacitor films, lithium battery separators, and solar cell back films. The construction period for all three projects is 2 years, and it is expected that 80% of the projects will be put into operation in 2013 and will reach production in 2014. After the three projects are completed, they will bring the company (002263) about 1,474 million yuan in main revenue and 203 million yuan in net profit. Meanwhile, in June 2010, the company (002263) raised 650 million yuan of additional shares with 6.85 yuan/share (of which Zhejiang Dadongnan Group Co., Ltd. subscribed 98,187 million shares), of which 514 million yuan was used to invest in a new functional BOPET packaging film project with an annual output of 60,000 tons, and 137 million yuan to invest in an ecological food (BOPP/PP) composite film technology improvement project with an annual output of 12,000 tons. After delivery, the two projects will increase annual sales revenue of 810 million yuan and 300 million yuan, respectively, with an additional annual net profit of 53.11 million yuan. 11.45 million yuan. The gross margin of BOPET film increased sharply, and BOPET film, the main product of the company (002263), ranked second and third respectively in the production capacity of BOPP film products in the same industry. In 2010, with crude oil prices rising by more than 18% throughout the year, the company (002263) achieved annual operating income of 1.4 billion yuan, an increase of 30.74% over the previous year, and achieved net profit of 77.44 million yuan, an increase of 44.85% over the previous year. The gross margin of BOPP film and CPP film products of the company (002263) decreased due to the increase in raw material prices, while the gross margin of BOPET film products increased sharply by 16.91% year on year, completely offsetting the adverse effects of falling gross margins of other products and ensuring stable profits. The R&D and Land Reserve Company (002263) has developed more than ten technological innovation projects at the provincial level and above on the basis of advanced equipment and years of experience, drawing on advanced foreign technology, and has strong core technological competitiveness. The company (002263)'s new product “New High-Efficiency Military Packaging VCI Anti-Rust Film” has not yet been mass-produced, providing a guarantee for the future expansion of the company's product line. The company (002263) has sufficient land reserves. We estimate that in addition to the land used in the three additional projects, the company (002263) still has 300 acres of land reserves, which is even more precious in the face of increasingly tight land resources in Zhejiang. Based on the company's (002263) earnings per share of 0.33 yuan, 0.59 yuan, 30 times PE estimates after full dilution from 2012 to 2013, we maintain our purchase rating, and target price for six months: 14.26 yuan.