Event: The company released its 2018 annual report. In 2018, it achieved operating income of 530 million yuan, an increase of 20.5% over the previous year, and net profit of 140 million yuan, an increase of 110.8% over the previous year. The company predicts net profit of 30 million yuan to 36 million yuan in the first quarter of 2019, an increase of 12.4% - 34.8% over the previous year. Leading in the photoinitiator industry segment, with raw material advantages. The company is an enterprise mainly engaged in R&D, production and sales of photoinitiators, thiol compounds and their derivatives. The main product, photoinitiator 907, has the largest market share in the domestic market. The company has the strength of large-scale production of 907 raw materials anisulfide, and has the production capacity of the entire industry chain from raw materials to final products. The cost advantage and raw material guarantee advantages are obvious. Currently, the company has two production bases, in Shangyu and Jiangxi, which produce photoinitiator series products and thiol compounds and derivatives products, respectively, with a production capacity of 2,000 tons. Three major factors led to high performance growth throughout the year. The company implemented relevant plans one by one in accordance with strategic plans and arrangements, and gradually raised the sales price of products while maintaining relatively stable market supply and demand. Compared with the same period in '17, the price of the company's products increased by a certain margin, and sales volume remained basically the same. Second, the company has continuously improved the process, technology and quality of products, and won further recognition from the market. Some reserve varieties of thiol compounds have been effectively promoted and distributed in downstream markets, becoming a new profit growth point for the company. Third, the appreciation of the US dollar has brought about an increase in exchange earnings and a decrease in interest expenses. Compared with the same period last year, financial expenses have declined markedly. Invest 500 million yuan to build the first phase of the Inner Mongolia project to strengthen its position in the industry. The company is building a 29,000-ton photoinitiator and pharmaceutical intermediate project in Alashan. The project will be completed and put into operation in 2019, gradually releasing production capacity. The project will help future companies expand product categories in the field of photoinitiators and pharmaceutical intermediates, improve the industrial chain, and enhance core competitiveness. The project will have a huge impact on the company's profit growth over the next three years. Earnings forecasts and ratings. Considering the current product production and sales situation, the EPS for 2019-2021 is expected to be 1.36 yuan, 1.70 yuan, and 2.07 yuan respectively. Net profit from the mother will maintain a compound growth rate of 23% over the next three years, maintaining the “buy” rating. Risk warning: environmental risk, production safety risk, market risk, progress of projects under construction or proposed construction and risk of production progress or failure to meet expectations, risk of the industry adding too much new production capacity.