Key investment points: The pesticide business has a stable advantage. In terms of pesticide business entering the formulation market, the company is mainly engaged in the production of two types of biocides, dipromycin and pyrimethoxylate. Fungicides are the fastest growing field among the three types of pesticides. It is a broad-spectrum, protective bactericide with no obvious drug resistance, annual sales of around 300 million US dollars, and maintains a growth rate of about 2%. The company's production capacity is 14,000 tons/year, leading in process and quality; pyrimidine is the representative methoxyacrylate biocides Variety with excellent comprehensive performance. In 2014, pyrimethoxone achieved sales revenue US$1,215 million, with a compound sales growth rate of 6% in recent years. The company began to intervene in the production of pyrimidine after the patent expires, and has now become one of the largest manufacturers. After years of development, the company has formed stable cooperative relationships with a number of customers such as Oxone and UPL. Currently, the company is expanding downstream formulations on the basis of existing drug production capacity to increase added value and increase profitability. The variety of flame retardants has increased, and flame retardants are the second largest plastic additive product in the extended industrial chain. Global demand for flame retardants is expected to grow at an average annual rate of about 5% in the later stages. The company's main product is decabromodiphenyl ethane, which has the largest domestic production capacity. The product has entered the supply system of important domestic and foreign insulation materials and modified plastic manufacturers such as Alus and Jinjin Technology in Germany. The company's IPO raised funds to increase melamine polyphosphate flame retardants by 2,500 tons/year and 10,000 tons/year flame retardant compound masterbatch. With the gradual release of project production capacity, the company's flame retardant business ushered in another development. The profit forecast and rating is estimated to be 1.65 yuan, 1.89 yuan, and 2.14 yuan for the 2018-2020 EPS, respectively, and the corresponding company's latest closing price PE is 12.8X, 11.1X, and 9.8X, respectively. In view of the company's obvious advantages in segmentation, and the commissioning of new projects contributing to performance, coverage was given a “recommended” rating for the first time. Risk warning 1) Increased competition in pesticide segments; 2) Downstream customer expansion falls short of expectations