Matters: On September 21, the company issued an announcement: Yongtai Hi-Tech Phase I “3000 tons of lithium hexafluorophosphate project” production workshop has completed relevant equipment debugging and trial production reporting work, and trial production work will begin. Once trial production starts, Yongtai Hi-Tech can apply to the intended customer for factory inspection and submit mass production samples to fulfill the order. Main opinion 1. Lithium hexafluorophosphate will begin trial production, which is expected to provide significant incremental performance. The first phase of Yongtai Hi-Tech's “3000 tons of lithium hexafluorophosphate project” will begin trial production work. Intended customers can apply for factory inspection and submit mass production samples. The price of lithium hexafluorophosphate has continued to decline since 380,000 yuan/ton (tax included) in the first quarter, and currently remains at 190,000 yuan/ton (tax included). Since May, the operating rate of power battery companies has generally increased, and demand in the electrolyte market is picking up, and prices are expected to stabilize in the future. In August, the sales volume of new energy vehicles increased by 76.3% year on year, the cumulative sales volume of new energy vehicles in January-August increased by 30.2% year on year, and the price of lithium hexafluorophosphate basically bottomed out. In addition, the company's 1,000-ton lithium bifluorosulfonimide project is undergoing equipment installation and commissioning and plant construction, and will soon be put into operation. 2. The pesticide business is gradually improving. The pharmaceutical business is expected to develop rapidly, orders for pesticide intermediates are stable, and the pesticide business is gradually improving. The company has now developed into a fluorobenzene fine chemicals manufacturer with the most complete product chain and the largest production capacity in the world. At the same time, it has acquired Shanghai Longhui to build a production and trading platform for pesticide intermediates and APIs. The company purchased 100% of the shares of Zhejiang Shouxin and 90% of the shares of Foshan Shuxin. The fixed increase price was 19.51 yuan. Currently, the fixed increase price is inverted. Through acquisitions, pharmaceutical intermediates, APIs, and formulations have been built, and the domestic GMP and US FDA are vertically integrated into the industrial chain layout. Yongtai Pharmaceutical has successively obtained the “Pharmaceutical GMP Certificate” and the EU CEP certificate for duloxetine hydrochloride APIs, and the pharmaceutical internationalization project has also entered the trial production stage. At the same time, the company invests in Anbisheng with its own capital to strengthen the company's competitiveness in the pharmaceutical field through the consistent evaluation of pharmaceutical service capabilities, oral solid formulation research and development capabilities, drug registration capabilities in international markets such as the US and WHO, and factory GMP and management capabilities over the years. 3. Invest in OLED materials and other projects to diversify and create new profit growth points. In terms of electronic chemicals, the company has established strategic business relationships with world-renowned LCD manufacturers such as Germany's Merck and Japan's Zhisuo. The LCD photoresist market is huge. The company's full production of 1500 tons of CF photoresist can contribute 117 to 186 million yuan. Furthermore, the company plans to invest in the construction of an OLED electronic materials project with an annual output of 60 tons with its own capital to expand the layout of the flat panel display field; at the same time, it plans to invest in the construction of 4,340 tons of metoprolol and other 19 APIs and 600 million tablets of traditional Chinese medicine extraction projects to diversify and create new profit growth points. 4. Profit forecast and ratings expect the company's EPS in 17-19 to be 0.41/0.63/0.48 yuan, and the corresponding PE is 37X/24X/31X. First coverage, giving a “recommended” rating. Risk warning: The pesticide business is declining, and construction projects are not progressing as expected.