Incident: On the evening of May 19, the company announced that it plans to use its own funds to invest in the construction of a “high performance functional polypropylene film trial production project” within the company's existing factory area in Jiashan County Economic Development Zone in Zhejiang Province. The project plans to invest no more than 100 million yuan to build a trial production line for high-performance functional polypropylene films, trial manufacture high-performance functional polypropylene film products, and further expand them. Main views: 1. Fill the gaps in the country. We found on the official website of the China Patent Office that on May 13, 2013, the company officially submitted an invention patent for “an acrylic polymer-vinyl polymer multilayer composite film containing a composite adhesive layer, its preparation method, use, and products”. The application number is 2013 10177904.7. It coincides with the more than 20 invention patents mentioned in the announcement, filling the gap in the country. 2. The product performance is higher, and it has entered a new product field. We note that the announcement mentioned the characteristics of the product after using this invention, such as better rigidity, high toughness, strong tear resistance, folding resistance, transparency, memory function, printing adaptability, post-processing performance, stain resistance, environmental adaptability, and a longer life cycle, are of great significance to energy saving and environmental protection. The announcement mentioned that “this trial product is fundamentally different from the POF polyolefin heat shrinkable film currently operated by the company in terms of film structure, raw material formulation, production process and product use, etc., and belongs to a new product field” and “has had a significant positive impact on the company's long-term performance.” We discovered that the company's original products are mainly used in: food packaging, stationery packaging, IT products, automobiles, finance, pharmaceuticals and other industries. We can infer that the application fields of the company's new products have fundamentally changed, evolving from just packaging materials to a deeper level. 3. The traditional business POF heat shrinkable film product structure is continuously optimized. By the end of 2012, the company had a total production capacity of 22,700 tons of various types of POF heat shrinkable films, and the fundraising project “New 3.4 meter polyolefin heat shrinkable film production line project” and the overfunding project “New 3.4 meter polyolefin heat shrinkable film production line phase II project” were put into production before the end of 2013. The total sales volume of the company's POF heat shrinkable film in 2014 was 23,600 tons. After a run-in period of more than a year, the company's production lines have basically achieved smooth production, and the product structure has been continuously optimized. In the future, the domestic market for the company's high-end film products is expected to grow in new application fields such as heavy-duty packaging and color printing packaging; at the same time, it will also further develop foreign markets. For example, the sales volume of high-end films of the US subsidiary is expected to reach 500 tons this year. 4. Give a “Highly Recommended” rating. Without considering high-performance functional polypropylene films, we expect the company's performance in 2015-2017 to be 0.09, 0.15, and 0.24 yuan/share. With the release of POF heat shrinkable film production capacity and structural optimization, the company's performance is expected to grow rapidly in the next few years. At the same time, considering the broad potential market space for high-performance functional polypropylene films, we gave the company a “highly recommended” rating. Risk Warning: Product Prices Falling, New Project Profits Low Expectations