Investment points: The company's main business is classified according to the application side, including three categories: laser packaging materials, public safety anti-counterfeiting, and new displays and lighting. The traditional laser packaging materials business has entered a mature period, and the growth rate of the industry is flat. In 2013, the market space for domestic tobacco and alcohol labeling products was about 5 billion dollars. As the industry enters a mature period, the market growth rate is relatively slow, with an average annual compound growth rate of about 5%. The company has mastered the upstream laser film production process and can achieve self-sufficiency in raw materials; at the same time, it has mastered micro-nano optical technology and can provide customers with customized products through independent research and development of production equipment. There is currently little market space for public safety anti-counterfeiting films. Potential future growth points are yet to be established and opened up in the market for motor license plate anti-counterfeiting films and new versions of RMB anti-counterfeiting stickers. The company is currently the sole supplier of anti-counterfeiting materials for motor vehicle driver's licenses and driving permits, and has a good cooperative relationship with the Traffic Management Research Institute of the Ministry of Public Security, and is in the position of a market monopolist in this segment. However, since market segmentation space is relatively small, the driving effect on the company's operating income will be weak in the future. The active entry into the light guide film/plate and conductive film markets is a ten-billion-level market, and is likely to maintain a high growth rate over the next 3 years. Light guide film/board: At present, the company's light guide film products have basically entered domestic brand mobile phone manufacturers and have begun to contribute to performance. In the future, we need to pay attention to the market development progress of the company's light guide board products. Conductive film: The penetration rate of touch NB and touch AIO is low. The large size characteristics of the product provide a place of use for technical routes such as metal mesh and SNW, so future growth space is worth paying attention to. The company is one of two domestic listed companies that have mastered metal mesh technology and can achieve mass production. Compared to competitors in the industry, the company entered the touch film field relatively late, and the historical burden is light. Profit forecast and investment rating: We expect the company's net profit to grow at a compound rate of about 103.33% over the next 2 years, with EPS of 0.24 yuan and 0.67 yuan in 2014 and 2015, respectively. With the development of new markets for light guide films and conductive films, the company's main business structure is expected to undergo major positive changes, so for the first time, we have given an investment rating of “increased holdings”. Main risks: Shipments in the large-size touch market fall short of expectations, and market expansion for light guide films and conductive film projects falls short of expectations.