A leading company in the cleaning electrical hoses industry. The company is mainly engaged in R&D, production and sales of clean electrical hoses and accessories. According to documents from the China Plastics Processing Industry Association, the sales volume and market share of vacuum cleaner hoses produced in 2011-2015 ranked first in the same industry in the country. At present, the company has formed a product system with hoses as the main components. Among them, hose products mainly include five categories: telescopic hoses, extrusion hoses, blow molded hoses, blister hoses, and composite winding hoses. The accessories products mainly include water tanks, wire winders, floor brushes, etc. Product demand is growing steadily, and industry concentration is expected to increase further. Cleaning electrical hoses and accessories are used in the field of cleaning electrical appliances such as vacuum cleaners, ironing machines, and dishwashers. The overall household appliances market in China has maintained a relatively rapid growth trend. Among them, cleaning appliances such as vacuum cleaners and ironing machines have performed well. Dishwashers in particular have more potential for market development. Downstream cleaning appliance manufacturers and terminal brands have higher and higher requirements for the quality, performance, and function of hose products. Labor costs and transportation costs are rising, and raw material prices are fluctuating. Market demand is gradually concentrated on large enterprises with competitive advantages such as scale advantages, product advantages, technical advantages, and solution capability advantages, and industry concentration has further increased. The main revenue is growing steadily, and the procurement of high-quality customers is stable. In 2017, the revenue of telescopic hoses, accessories products and extruded hoses was RMB 217.7076 million, RMB 82.7769 million and RMB 81.6921 million respectively, up 14.46%, 69.59% and 1.45% year-on-year. By product, in 2014-2017, the gross margin of telescopic hoses remained at a high level and was basically stable at around 44%; accessory products also achieved a gross profit margin of around 28% during the same period; during the same period, the gross margin of extruded hoses was the lowest, only around 20%. Overall, the company's gross margin has remained at a high level in recent years, stabilizing at around 36%, and stable profitability. In 2015-2017, the number of customers that continued to do business with the company was 79, accounting for more than 96% of revenue. The company's revenue mainly came from customers with continuous cooperation. Raise capital to break the bottleneck of bankruptcy and strengthen the company's market position. In terms of hose products, the company's comprehensive production capacity utilization rates in 2015-2017 were 91.89%, 84.42%, and 91.11%, respectively, and the use of equipment was close to saturation. In the field of accessory products, sales of the company's vacuum cleaner water tanks and floor brush products have continued to increase rapidly in recent years. The company's initial public offering raised funds for “clean electrical hose production and construction projects”, “vacuum cleaner accessories production and construction projects” and “R&D center construction projects”. Profit assumptions and valuation space. We expect the company's net profit for 2018-2020 to be 106.4 million yuan, 133.51 million yuan, and 16.4.89 million yuan, respectively. The corresponding EPS is 1.11 yuan, 1.39 yuan, and 1.72 yuan respectively. We carefully give 20-25 times PE in 2018, corresponding to the reasonable value range of 22.2-27.75 yuan, and we recommend purchasing. Risk warning. Product sales fall short of expectations; risk of fluctuations in raw material prices; progress in fund-raising projects falling short of expectations; technology research and development risks.