In 2013-2014, fund-raising projects were put into operation one after another. The commissioning of the fund-raising project brought the company's production capacity close to double, breaking the bottleneck of bankruptcy capacity. At the end of 2012, the company had a total production capacity of 22,700 tons of various POF heat shrinkable films; in 2013-2014, fundraising projects and overfunded projects were put into operation one after another, adding 18,000 tons of production capacity. At that time, the company's total production capacity will reach 40,700 tons, which is nearly double compared to the end of 2012. It is expected that H2 in '14 or H1 in '15 will reach an inflection point in performance. We believe that as equipment stabilizes, market development continues to deepen, new production capacity continues to contribute to revenue, and period expenses stabilize, the company will reach an inflection point in performance in the second half of '14 or the first half of '15. The allotment of shares enhances the company's financial strength. The controlling shareholder's full subscription indicates approval of the company's prospects. In the first quarter, the company sold shares to all shareholders, and received a total of 3.1 billion yuan in subscription capital, and the company's financial strength was strengthened. Among them, Mr. Chen Dakui, the controlling shareholder of the company, subscribed to the full amount of allocable shares. We believe that the controlling shareholders have increased the company's capital by allocating shares, which shows their high level of confidence in the company's future development prospects. PVDC films provide a long-term reserve for the company's performance. Imported replacement of multi-layer composite heat seals can be expected. Profit forecasts and investment advice. We estimate the company's EPS for 2014-2016 to be 0.17 yuan, 0.27 yuan, and 0.36 yuan, respectively. It is worth mentioning that the above performance estimates only take into account the increase in performance brought about by the company's fund-raising projects after the company's fund-raising projects are put into operation, not the increase in performance that new products such as multi-layer composite heat seals may bring in the next three years. Therefore, there is a possibility that the company's performance will exceed expectations. Give a “buy” rating. Risk warning. 1. Market development progress is lower than expected; 2. Project commissioning is delayed; 3. Exchange losses.