The main points of the report are segmenting the leaders in the pesticide field. The business inflection point establishes that the company's main products include imidamine, caprylbromobenzonitrile, fluconazole, etc., which rank first in the world or domestically, and have a remarkable position in the industry. On the basis of consolidating areas of advantage, the company expanded into the field of pesticide raw materials and intermediates, and merged with original pharmaceutical intermediate companies to fully improve the integrated advantages of intermediates, original drugs, and formulations. Its market share in segmented pesticide raw materials and preparations ranked among the highest. In 2015, the company acquired 51% of the shares of Hebei Ruikai Company (with a production capacity of 1,800 tons/year of glyphosate) through capital increase and stock expansion. In 2016, the company achieved net profit of 174 million yuan, an increase of 0.83% over the previous year; in 2017, the company achieved net profit of 148 million yuan in the first quarter, an increase of 200.3% over the previous year. Demand for core products is improving, supply is shrinking due to environmental protection. The continuous increase in the company's market share benefits from the pesticide industry's inventory replenishment cycle, improving industry sentiment, and improving pesticide exports. According to data from the General Administration of Customs, from January to May 2017, China's pesticide exports reached 710,000 tons, an increase of 16.4% over the previous year. The company is a leader in raw materials such as micronamine, octylbromobenzonitrile, and fluconazole. In the long-term development process, it has formed stable cooperative relationships with international agrochemical giants such as BASF and Bayer. Environmental protection is becoming stricter, forcing small and medium-sized pesticide companies that do not meet environmental protection standards to withdraw from the market. Industry concentration will increase, and leading companies will fully benefit. In recent years, the company has invested about 340 million yuan in the field of environmental protection, introduced new environmental protection technology and equipment to improve facility treatment capacity and treatment technology. It has outstanding environmental protection advantages, and its market share is expected to continue to increase. Convertible bond projects enrich the product structure and create future performance growth points. The company issued 845 million yuan of convertible bonds in May 2016 to raise funds for the construction of projects such as 5,000 tons/year glyphosate, 1,000 tons/year, and methoxylhydrazide. Among them, anti-inversion ester projects have already been put into operation, and glyphosate and methoxylhydrazide projects will be launched one after another. As paraquat is banned and glyphosate resistance becomes more severe, demand for glyphosate will usher in rapid growth, and the company's performance will improve dramatically. In addition, antitrexate and metoxacylhydrazide are future star products, and there is great potential for demand. It is expected that as projects are put into operation one after another, the company's profitability will continue to increase, which is conducive to enhancing the company's overall competitiveness. The petrochemical warehousing project gradually became large-scale, and the company built a petrochemical warehousing business, relying on the park's regional advantages and scarce license qualifications for refined oil products. The company used overraised capital to build a petrochemical warehousing project. The 148,000 square meter storage project of the first phase of the petrochemical project has already been put into use, and the second phase of the project was put into operation at the end of the year, becoming a new business growth point for the company. The company's petrochemical warehousing revenue reached 2.5 billion yuan in 2016, and is expected to continue to grow in the future. Investment advice: More flowering to create continuous growth. For the first time, a “buy” rating company was given steady operation in the main businesses of imixamine, caprylbromobenzonitrile, and fluconazole. The implementation of the convertible bond project opened up room for the company's growth, the petrochemical warehousing business increased performance growth, and the company entered a period of growth. The company's EPS is expected to be 0.30 yuan, 0.38 yuan, and 0.45 yuan in 2017, 2018, and 2019, giving it a “buy” rating for the first time. Risk warning: 1. Market development risks; 2. Risk of project delays.