Performance summary: In the third quarter of 2018, the company achieved revenue of 140 million yuan, an increase of 5.7% year on year, net profit of 40.185 million yuan to mother, an increase of 65.0% year on year, and EPS of 0.33 yuan. In the first three quarters of 2018, the company achieved revenue of 390 million yuan, a year-on-year increase of 21.6%, net profit to mother of 107 million yuan, an increase of 123.6% year-on-year, and EPS of 0.87 yuan. It is the leading segment in the photoinitiator industry and has the advantage of raw materials. The company is an enterprise mainly engaged in R&D, production and sales of photoinitiators, thiol compounds and their derivatives. Its main product, Photoinitiator 907, accounts for the largest market share in the domestic market. The company has the ability to produce 907 raw anisulfide on a large scale, and has the production capacity of the entire industry chain from raw materials to final products. The cost advantage and raw material guarantee advantages are obvious. Currently, the company has two production bases, in Shangyu and Jiangxi, which produce photoinitiator series products and thiol compounds and derivatives, respectively, with a production capacity of 2,000 tons. Photoinitiator revenue and profitability increased in the first three quarters. The company's performance growth in the first three quarters was mainly due to the rise in product prices and the year-on-year increase in sales volume: as prices in the upstream raw materials market rose, the company implemented new price standards in the new contract to ensure its own profitability, and the company's gross margin level began to rise in the fourth quarter of 2017 (30.7% gross profit margin in the third quarter of 2017, 36.1% in the fourth quarter, 43.7% in the first quarter of 2018, gross profit margin of 44.0% in the second quarter of 2018, the third quarter of 2018 (Gross profit margin 43.0%). Judging from the gross margin situation, the company's current product profit situation has stabilized. Product prices are high. Subsequent product prices and profitability will depend on market supply and demand rather than cost drivers. Invest 500 million yuan to build the first phase of the Inner Mongolia project to consolidate its position in the industry. The company changed the original investment and invested in Inner Mongolia to build a 29,000-ton photoinitiator and pharmaceutical intermediate project in Alashan, which will help the company expand its product categories in the field of photoinitiators and pharmaceutical intermediates in the future, improve the industrial chain, and enhance its core competitiveness. Profit forecasting and ratings. EPS is expected to be 1.13 yuan, 1.34 yuan, and 2.21 yuan respectively in 2018-2020. Net profit returned to mother will maintain a compound growth rate of 61% over the next three years, maintaining a “buy” rating. Risk warning: environmental risk, production safety risk, market risk, risk of progress and production progress of ongoing or proposed construction projects falling short of expectations.