Incident: On the evening of October 29, the company released its 2017 three-quarter report: In the first three quarters, the company achieved operating income of 260 million yuan, an increase of 14.18% over the same period last year; net profit attributable to shareholders of listed companies was 31.1209 million yuan, an increase of 12.83% over the same period last year. Reviews: 1. The company's net profit growth rate in the first three quarters surpassed 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-resistant ink market. According to the growth rate of domestic PCB boards, demand for PCB inks is expected to grow at a rate of about 8-9%. The company's electrostatic spray ink has been supplied in bulk to Chongda Circuit and Shennan. The high-end market has already opened up, and the photosensitive ink industry raised prices in the second half of this year, shifting cost pressure to the downstream part. The company's performance growth rate in the first three quarters surpassed 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 8,000 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. The new production capacity of 1,000 tons of photoresist chemicals raised, including 700 tons of photoresist and 300 tons of supporting chemicals, will target high-end TFT photoresists. It is currently in the pilot phase. Promote to market . 3. The company has obvious technical advantages. Through years of research and development, it has mastered the core technology of photosensitive inks, including resin synthesis technology, photoresist 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 develop in the photoresist field, we maintain our performance forecast. We expect the company's EPS to be 0.40, 0.50, and 0.66 yuan in 2017-2019, maintaining an “gain” rating. Risk warning: The market verification process for new photoresist products is not as good as expected; the risk of product application areas being too concentrated; the risk of bad debts in accounts receivable; and the share price of sub-IPOs fluctuates greatly.