The company invests in the construction of a “high-performance functional polypropylene film trial production project” Zhejiang Zhongcheng issued an announcement. It plans to invest in the construction of a “high-performance functional polypropylene film” trial production line to test and further expand “high-performance functional polypropylene film products”. The company plans to carry out a number of innovations in production equipment, film multi-layer structures, raw material formulations, production processes, etc. to fill domestic gaps; improve the balance of vertical and horizontal mechanical properties of the product, improve the mechanical properties of the product, make the product both high rigidity and high toughness, improve the product's tear resistance; improve the folding resistance and transparency of the product, give the product intelligence and memory function; improve the surface performance of the product through formula selection and surface treatment, so that it has better printing adaptability and post-processing performance. This product has characteristics such as better stain resistance, better environmental adaptability, and a longer life cycle, which is of great significance for energy saving and environmental protection. The new product is expected to be used in notes and marketable securities announcements, showing that the company has been conducting R&D tests on this high-performance functional polypropylene film product since 2011, and has applied for 20 invention patents for related R&D technical achievements in 2013. Based on this, we examined 20 patents applied for by the company in the Patent Search and Search System of the State Intellectual Property Office. All 20 patent specifications indicate that this type of polypropylene film is used for notes, marketable securities, printed materials, and packaging materials. The announcement stated that the “high-performance functional polypropylene film” that has been invested this time is fundamentally different from the POF heat-shrinkable film currently in terms of product use, and it is a new field. The company's original POF heat-shrinkable film is mainly used for packaging materials and printed products, so it can be inferred that the polypropylene film should be used for bills or marketable securities. We compared the performance of polypropylene products announced this time with various bills and marketable securities, and found that the performance of plastic banknotes currently used in countries such as Australia and New Zealand is consistent with the above performance. Therefore, we infer that the “polypropylene film” invested by the company this time is used for marketable securities or notes such as banknotes, bank drafts, and checks. Profit forecast and investment recommendations We estimate that the company's 2015-2017 EPS was 0.19 yuan, 0.32 yuan, and 0.51 yuan, respectively. Considering that the company has entered a period of releasing production capacity and that new reserve products will gradually be launched, there is an expectation of rapid growth in performance, and a “buy” rating was given. Risk warning: 1. Market development falls short of expectations; 2. Delays in project commissioning; 3. Exchange losses.