Event: The company released its 2018 annual report forecast, achieving net profit of 146 to 158 million yuan, an increase of 15% to 25% over the previous year, including non-recurring profit and loss of 10 to 15 million yuan. Among them, net profit for Q4 was 3312 to 45.78 million yuan, up 64% to 127% year on year, and -2% to +32% month on month. The main reason for the increase in the company's performance is that the company's sales revenue increased compared to the same period last year, which led to an increase in profit. The photoinitiator business has been growing steadily, and its shareholding in Xinyu, Changsha has further broadened the categories. The company is a leading company in the domestic photoinitiator business. Downstream includes semiconductors, LCD, and PCB fields. Customers include companies such as Taiwan's Changxing Chemical, Japan's Asahi Chemical, and Japan's Hitachi Chemical. It is expected to follow the development of the global semiconductor, LCD and PCB fields and continue to expand. The company announced a capital increase and acquisition of 34.5% of Changsha Xinyu's shares. Changsha Xinyu is currently the largest manufacturer of photosensitive initiator products in China. The products include 1173, 184, TPO, etc., which will help the company further expand its product categories and accelerate future development. Joining hands with Taiwan's Yulei Optoelectronics, a breakthrough is expected in the OLED field. The company cooperated with Taiwan Yulai to establish the powerful Yuladium. Currently, it has 10 sublimation machines and 1 evaporator, and has independent intellectual property rights. Currently, it can mass-produce light-emitting materials in three colors: red, green, and blue, which is expected to accompany the development and expansion of the domestic OLED field. In addition, Qiangli Yulai has established a cooperative relationship with LG Chem, which will help the company further develop in the field of OLED materials in the future. UV-LED opens up room for growth. The company's participation in Gelin Guang's 10% equity is conducive to the company's expansion into downstream industries, making better use of upstream and downstream synergies, and broadening the company's development space. Gelin Photosensitive specializes in LED light-curing materials. Benefiting from stricter domestic VOCs policies, UV-LED is expected to open up market space. The company's actual controller promised to give priority to injecting its shares in Gelin Sensing into the company when Greene Photosensitive achieves profit. Profit forecasts and investment ratings. It is predicted that the company's net profit for 2018-2020 will be 151, 1.84 and 222 million yuan, and the EPS will be 0.60 yuan, 0.73 yuan and 0.88 yuan respectively, corresponding to PE47X/38X/32X. Give it an “Overweight” rating. Risk warning: The risk of product expansion falling short of expectations.