Investment highlights: A professional casting and forging manufacturer in transition. The company's main business is greatly affected by fluctuations in the downstream industry. Although it has gradually stabilized and warmed up, it has entered a steady upward channel. Furthermore, based on traditional business, the company accelerates the development of new products and fields, and at the same time seeks investment opportunities to gradually promote the strategic development layout of product structure optimization and industrial transformation and upgrading. Acquired Fuyu from Shanghai and entered the field of new environmentally friendly chemical materials. Shanghai Fuyu was bought for 360 million yuan, and PE was 18 times higher. Accelerate the company's layout in the field of new materials research and application, and promote the optimization, transformation and upgrading of the company's product structure. The positive impact of this integration on the company's financial situation and operating results will gradually be reflected, and the company's profitability will increase steadily. The new company focuses on molecular sieves, and there is plenty of room for process improvement in the market. After completing this acquisition of Shanghai Fuyu New Material Technology Co., Ltd., the company incorporated Shanghai Fuyu's molecular sieve product line into its own industrial chain. The MTP market is expected to average 4 billion yuan per year over the next 5 years. FCC's multi-production propylene process DCC and MIP-CGP will also become another huge market driving demand for ZSM-5 zeolite. The completion of the layout of molecular sieves in VOCs is expected to bring new profit support to the company. Traditional businesses are gradually recovering, and the transformation dividends are being realized. In 2014, the shipbuilding industry gradually stopped declining, and the trend stabilized and is preparing for a rebound. The bottoming out in demand has led to a recovery in the company's performance, and the company's performance is expected to usher in a period of steady growth after overcoming the 2013 slump. Profit forecasting and valuation. We expect the company's operating income in 2015-2017 to reach 411, 5.54, and 636 million yuan respectively, net profit of 0.29, 0.77, and 95 million yuan respectively, and diluted EPS in 2015-2017 (based on total share capital after issuance) of 0.08, 0.20, and 0.25 yuan respectively, corresponding to 15-17 PE of 196, 79, and 63 times, covering the first time, giving it a “buy” rating, with a target price of 33.20 yuan.