Event: 1. The company released its 2018 performance forecast. The net profit range attributable to the parent company was 145.58 million yuan to 158.24 million yuan, an increase of 15%-25% over the same period last year. 2. The impact of non-recurring profit and loss on net profit is estimated to be 10 million yuan to 15 million yuan. Comment: 2018 results were in line with expectations. The company's performance continued to grow steadily in 2018, and is expected to achieve net profit of 145.58 million yuan to 158.24 million yuan, an increase of 15% to 25% over the same period last year. Looking at the 2018 Q4, net profit was 33.12 million yuan to 45.78 million yuan. After deducting government subsidies of 4 million yuan, there was an increase of 44%-107% over the same period last year. The impact of early production capacity restrictions is gradually weakening. Special chemicals for photoresist in the PCB, LCD and semiconductor sectors are developing in an orderly manner, continuing to enhance market position in various fields. Maintain the long-term recommendation logic: the company is committed to becoming a global technology leader in the field of light curing. The company focuses on research and development of important raw materials such as photoinitiators and resins for photoresists, which is one of the fields of photocuring. It has successively broken through the monopoly pattern of foreign companies that specialize in photoresist chemicals in the PCB, LCD and semiconductor fields, and has taken an advantageous position in the market. We believe that adhering to innovation at the source is the foundation for the company to maintain high gross profit, and a deep understanding of key raw materials and technical formulations is a sharp sword for the company to continue to explore new application fields of light-curing; it is a leading chemical specialized for photoresist, and various application fields are developing steadily. The company occupies the absolute leader in the PCB dry film photoresist initiator market, benefiting from downstream recovery and product structure upgrades; as the domestic transfer of the panel industry accelerates, the company is expected to rapidly increase the LCD photoresist initiator market share; with the prosperity of the electronic equipment market and the approach of the Internet of Things era, KrF semiconductor photoresist initiators will maintain rapid growth. The company has formed a good position in the field of special chemicals for photoresist, with obvious technological leadership; with a two-wing layout, the powerful Yulai is expected to become a leading OLED material company. Based on the advantages of technology research and development and quality control in the electronic chemicals field and the customer base of the display panel industry, combined with the technical advantages of Taiwan's Yulai OLED light-emitting organic materials, a holding subsidiary, Strong Yulai, was established to comprehensively lay out the field of OLED materials. With the cooperation of LG Chem, the company's technology and channel development is expected to occupy a leading position in OLED upstream materials; with environmental policies and technological breakthroughs, the green UV-LED curing business is expected to open up a 100 billion market. Environmental policies have been tightened, and the development of zero-VOCs emission technology in various fields is imminent. With breakthroughs in UV-LED curing technology, the company has successfully entered new application scenarios such as inks and coatings. The actual controller plans to inject its equity into the company by making a profit for two consecutive years at the latest. We believe that the new business is expected to break the ceiling of the initial business, open up the 100 billion market for light-curing materials, and maintain the “Highly Recommended - A” investment rating. Given that the new UV-LED curing business is not fully integrated into the system, we predict that the company's net profit for 2018-2020 will be 154 million, 202 million and 254 million, corresponding to PE of 43.9X, 37.6X, and 29.9X, maintaining the “Highly Recommended” investment rating; risk warning: demand in the PCB and LCD sector falls short of expectations; technology development in the semiconductor field falls short of expectations; and new green UV-LED curing business development falls short of expectations.