Event: The company released its 2018 performance report on February 26. It is expected to achieve total operating income of 729 million yuan, an increase of 13.90% over the previous year; operating profit of 161 million yuan, an increase of 4.69% over the previous year; total profit of 165 million yuan, an increase of 9.74%; and net profit of 149 million yuan, an increase of 17.62% over the previous year. Comment: OLED is developing rapidly, and the domestic LCD photoresist photoinitiator series products have achieved a breakthrough. According to relevant data, domestic OLED TV sales increased by 115.5% in 2018, and in 2019, China's OLED TV is expected to continue to grow rapidly. The rise of OLED phones will also stimulate hardware demand to a certain extent, and the shortage of supply will bring excellent opportunities for the company's development. Qiangli's OLED sublimation materials have been mass-produced and have entered the R&D and production lines of major domestic OLED panel manufacturers. The OLED material sublimation production line has built 6 sublimation machines and 1 evaporator. As the main material supplier for PCB photoresist in the world, the company's historic breakthrough in LCD photoresist photoinitiator series products has broken the monopoly of multinational companies on this type of product, and its technical advantages have clearly further strengthened the company's leading position in the industry. The synergy effect is outstanding, and the technical advantages are further highlighted. In October 2018, the company completed the acquisition of 10% of Green Light's shares and expanded the production field to UV LED ink business. This product benefits from stricter environmental policies, has significant advantages in replacing traditional ink products, and has very broad prospects. As of the first half of 2018, the company applied for 99 patents from the China International Intellectual Property Office and obtained multiple invention patents from several foreign certification bodies during the same period. Strong product development capabilities attracted high-quality customers such as Samsung SDI and Hitachi Chemical to conduct business with the company, and excellent customer resources and scientific research capabilities ensured continuous and steady growth in performance. Maintain a “buy” rating. We are optimistic about the synergies after the company's mergers and acquisitions. The three major businesses will enter a period of rapid performance release. It is estimated that the company's EPS for 2018 to 2020 will be 0.55/0.91/1.23 yuan, respectively. It is highly recommended to maintain the “buy” rating. Risk warning: downstream demand falls short of expectations, new product development falls short of expectations