Event: The company announced that a project cooperation agreement was signed with Suzhou Jucui. The two sides plan to jointly build a polyimide (PI) resin and film production line to promote product development and industrialization of yellow PI and transparent PI. PI is the most critical display material in the field of flexible OLEDs, and there is a lot of room for import substitution: PI materials have been widely used in flexible OLEDs due to their excellent high temperature resistance, mechanical properties, and chemical stability. Among them, yellow PI is mainly used in flexible OLEDs as substrate materials and auxiliary materials, and CPI (transparent PI) is mainly used in cover materials and touch materials. The PI industry chain includes the production of upstream PI resins and base films, as well as precision coating and post-processing procedures. Among them, the production of resin and base film is the highest barrier. Currently, it is monopolized by a few companies such as Ube in Japan, Cologne in Korea, Sumitomo Chemical, Japan's Zhong Yuan, and SKC. Currently, all domestic companies rely on imports, and precision coating and post-processing are also highly barriered. Currently, major manufacturers include a few companies such as Korea's Dongyu Fine Chemical, a wholly-owned subsidiary of Sumitomo Chemical, Higashiyama, Japan (strategic partner of Xinren Technology), and Dainippon. Join hands with Suzhou to achieve an integrated layout of the industrial chain for key materials for flexible displays: According to the announcement, the two parties will soon jointly invest in the construction of PI resin production lines to produce resin products of yellow PI and transparent PI (the total investment amount of the resin project is expected to be no more than RMB 200 million). Suzhou Jucui has now completed the pilot testing of yellow PI products and formed a number of independent intellectual property rights, obtained APS and other transparent PI intellectual property licenses, and is cooperating with customers to develop transparent PI products in the field of display. We believe that Suzhou Jucui (shareholder APS) has 15 years of R&D experience in the PI field, localization and product cost performance advantages, while Xinlun Technology's Changzhou Phase III optical film project has introduced the most advanced nanoscale precision coating line in Japan and a highly experienced optical film precision coating team in Japan. Therefore, this cooperation helps Xinlun move its business from precision coating to precision coating The process has been extended to the manufacturing process of upstream resins and base films, forming a perfect integrated layout in the field of optoelectronic displays. On the one hand, it can reduce the cycle of the industrial chain, and on the other hand, it can reduce costs, and on the other hand, it can truly realize the import replacement of key materials for domestic flexible displays. Profit forecast: We expect the company's net profit from 18 to 20 years to be 4.40, 6.31, and 950 million yuan, corresponding to EPS of 0.38, 0.55 and 0.83 yuan/share, a 50% compound growth rate for the next 3 years, and 34/24/16 times the corresponding three-year PE, maintaining a “buy” rating. Risk warning: End customer demand is much lower than expected, product prices are falling due to increased market competition, risk of new project operation and management, risk of brain drain, etc.