Core view: New products such as multi-layer composite heat sealing film and strong composite label have successfully avoided trial production Zhejiang Zhongcheng issued an announcement. The “multi-layer composite heat sealing film” and “strong composite label film” products it has developed have been successfully tested. Currently, the former is in a small-batch trial phase, while the latter is in the customer development and marketing phase. The two products have been verified once again: The company has strong product selection and R&D capabilities. From POF crosslinked film, its main business since its launch, to the “high-performance functional polypropylene film” announced last week, to the two new products announced this time, it can be seen that Zhejiang Zhongcheng has a strong sense of strategic foresight and innovation, and has strong product selection capabilities and R&D capabilities. Its products all have the following characteristics: high technical barriers, high profitability, and filling domestic gaps. Multi-layer composite heat sealing film: Used in Tetra Pak's production, the main function of this product is to block oxygen and moisture. It is used in Tetra Pak brick packaging and Tetra Pak pillow packaging products to protect the midseam paper interface from being eroded by liquids such as dairy products or acidic drinks and lose its barrier function. According to data, the annual production of Tetra Pak packs in the country is about 100 billion packs. Of these, about 75% of Tetra Pak packs use Tetra Pak's heat sealing film, and the remaining 25% use domestically produced heat sealing film. Domestic heat sealing films still have problems such as high cost, easy breakage, and unsuitable for high-speed packaging. Strong composite label film: Used in aviation tags, postal tags, etc. This product has excellent printing effect, tear resistance, and excellent resistance to hot spot tension. It has the characteristics of low temperature resistance, UV resistance, etc., and can be used in a wide range of printing and printing applications. Specifically, it can be used for marking applications in distribution basins such as sub-aviation tags and postal tags. Currently, only companies such as Veroland in the US can produce strong composite label films, and there are no domestic companies that can produce them yet. The new product “high-performance functional polypropylene film” recently announced by the company may be used to produce marketable securities such as banknotes. The market space is extremely broad. Profit forecasts and investment suggestions. We estimate that the company's 2015-2017 EPS will be 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.