Huide Technology: a manufacturer of polyurethane resins. The company's main business is R&D, production, sales and technical services for polyurethane resin products. The main products are polyurethane (PU) for synthetic leather, polyurethane elastomer stock solution, and polyester polyols. Among them, the most important product is polyurethane for synthetic leather, referred to as “polyurethane for leather” for short, also known as “PU paste”. The polyurethane elastomer stock solution is the main raw material used to produce polyurethane elastomers; the polyester polyols produced by the company are mainly for personal use and are intermediate products for the production of polyurethane, and the company also sells some polyester polyols directly. The company's main business is outstanding, and since its establishment, it has insisted on building “Huide” brand polyurethane resin products. Polyurethane materials have a wide range of applications. Polyurethane is an emerging organic polymer material and is known as the “fifth largest plastic”. Because of its excellent performance, it is widely used in many fields of the national economy. Product application fields include light industry, chemicals, electronics, textiles, medicine, construction, building materials, automobiles, national defense, aerospace, aviation, etc. The main revenue is increasing year by year, and long-term cooperative customers are stable. Polyurethane for leather is the main source of revenue. In 2017, the revenue of polyurethane, polyurethane elastomer stock solution, and polyester polyol for leather was 112.05 million yuan, 105.82 million yuan and 126.32 million yuan respectively, up 17.33%, 45.84%, and 101.54% year-on-year. Revenue from polyurethane for leather accounts for 78.89% of total revenue, while polyurethane elastomer stock solution and polyester polyol account for only 7.42% and 8.86% of revenue. In 2017, the prices of major raw materials such as dimethylformamide (DMF), adipic acid (AA), and diphenylmethane diisocyanate (MDI) all experienced a rapid rise and fluctuated at a high level in 2017 due to multiple factors such as production capacity limitations of upstream enterprises and rising oil prices. In 2017, the average purchase price of the company's main raw materials and the average sales price of the main products both increased significantly compared to 2016. Raise capital to expand the company's production capacity and upgrade product structure. The company's initial public offering aims to raise capital for the construction of 180,000 tons of polyurethane resin and its modifiers projects, technology research and development center projects, and intelligent transformation projects. Among them, the project with an annual output of 180,000 tons of polyurethane resin and its modifiers has a total investment of 450 million yuan and is implemented in two phases. The first phase of the project has a construction period of 2 years, a production period of 10 years, and a design capacity of 135,000 tons. The actual production capacity for the first year after the project is put into operation is 70% of the design capacity of the first phase, and the production capacity for the second year and subsequent years is 100% of the production capacity of the first phase of the design. The first phase of the project has a total investment of 33 million yuan. The second phase of the project was implemented after the investment in the first phase of the project was completed. The construction period was 1 year, the production period was 9 years, and the design capacity was 45,000 tons. The second phase of the project has a total investment of 12 million yuan. After the construction of the first and second phases of the project is completed and fully delivered, it is estimated that annual sales revenue will be increased by 2,375 million yuan, total additional profit will increase by 19864 million yuan, and the post-tax recovery period of the project will be about 5-6 years. Profit forecast and valuation range. We expect the company's net profit for 2018-2020 to be 124.14 million yuan, 146.23 million yuan, and 185.79 million yuan, respectively. The corresponding EPS is 1.16 yuan, 1.37 yuan, and 1.74 yuan, respectively. The corresponding EPS is 1.16 yuan, 1.37 yuan, and 1.74 yuan, respectively. We recommend purchasing 20-25 times PE in 2018, corresponding to the reasonable value range of 23.20-29.00 yuan. Risk warning. The risk of fluctuations in raw material prices, the risk of fluctuations in gross margin, and implementation of fund-raising projects fell short of expectations.