Event: On the evening of August 28, the company released its semi-annual report for the first half of 2017: During the reporting period, the company achieved operating income of 166 million yuan, an increase of 15.33% over the same period last year; operating profit of 22.5387 million yuan, an increase of 13.52% over the same period last year; and net profit attributable to shareholders of listed companies was 18.699 million yuan, an increase of 13.07% over the same period last year. Comments:1. The company's performance growth rate exceeds the average growth rate of the industry. The company is one of the leading domestic PCB photosensitive ink companies, accounting for 25% of the domestic photosensitive line ink market and 10% of the domestic market in the solder resistance ink market. According to the growth rate of domestic PCB boards, the demand for PCB ink is expected to grow at a rate of about 8-9%. The company's electrostatic spray ink has already been supplied in batches to Chongda Circuit and Shennan Company. The high-end market has opened up, and the performance growth rate exceeds the industry average. 2. The new production capacity is being built in an orderly manner. The company currently has an annual production capacity of about 8000 tons of photosensitive ink, and a new production capacity of 10,000 tons will be put into operation next year; at the same time, the company is entering the LCD photoresist market based on photosensitive ink. The company currently has an annual production capacity of 50 tons of photoresist products, mainly photoresist products on LED and TN/STN LCD panels, and the new production capacity of 1,000 tons of photoresist chemicals raised for 1,000 tons of photoresist chemicals, including 700 tons of photoresist and 300 tons of supporting chemicals, will target photoresist for high-end TFT. Currently, it is already in the pilot stage, and is expected to be ready within the year Market promotion 。 3. The company has obvious technical advantages. Through years of research and development, the company has mastered the core technology of photosensitive inks, including resin synthesis technology, photoresist photosensitizer synthesis technology, formula design and process control technology. Profit forecast and rating: As the company continues to achieve import substitution in the high-end electrostatic spray ink market and expand in the photoresist field, we expect the company's EPS to be 0.40, 0.50, and 0.66 yuan in 2017-2019, and the target price is 25.2 yuan, giving it an “increased holding” rating. Risk warning: The market verification process for new photoresist products is not as good as expected; risk of excessive concentration in product application areas; risk of bad debts on accounts receivable; and high fluctuations in sub-IPO stock prices.