The company has strong R&D capabilities, rich product reserves, and broad scope for future development. We downgraded the company's 2019-2021 EPS forecast to 0.64/0.86/1.23 yuan (the original forecast value was 0.82/1.10 yuan/share) and predicted its 2021 EPS to be 1.23 yuan, maintaining the target price of 32 yuan according to 50 times PE in 2019. The company's valuation tends to be reasonable and downgraded to the “increased holding” rating. Results grew steadily in 2018, and there was a decline in Q1 in 2019. In 2018, the company achieved revenue of 739 million yuan, +15.49% year-on-year, and net profit of 147 million yuan, +15.77% year-on-year. In 2018, Q4 achieved single-quarter revenue of 226 million yuan, +34.89% year-on-year; net profit of 34 million yuan per quarter, +68.88% year-on-year. The company's sales increased steadily throughout 2018. In Q1 of 2019, the company achieved revenue of 184 million yuan, +9.72% year-on-year; realized net profit of 33 million yuan, -10.18% year-on-year, mainly due to the tight supply of raw materials, rising prices, and a decline in the gross margin of the company's products due to the continued high pressure on the environmental situation. Technology has been accumulated deeply, and the scale of production capacity has expanded dramatically after implementation. The company has a photoinitiator production capacity of 1,535 tons, photoresist resin production capacity of 6,760 tons, and still has production capacity of more than 65,000 tons of key raw materials. The overall production capacity scale will increase significantly after implementation. The industry has high technical barriers, and the company has made technological breakthroughs through independent research and development. Downstream customers include internationally renowned companies such as Changxing Chemical, Asahi Kasei, Hitachi Chemical, Sumitomo Chemical, JSR, TOK, Mitsubishi Chemical, LGC, and Samsung SDI. Production capacity is expected to be introduced quickly, greatly increasing performance. Join hands with Taiwan's Yuladium to enter the OLED materials market. The company established a joint venture with Taiwan's Yulei Optoelectronics to establish Qiangyu Optoelectronics, and joined forces with LG to lay out the OLED materials business. Taiwan Yurei Optoelectronics's OLED materials cover all fields of electron injection, electronic transmission, organic light emission, hole transmission, and hole injection, and can produce sublimated terminal materials. Currently in the product certification period, if a breakthrough is achieved, the company's OLED materials business is expected to expand rapidly. Epitaxial growth, continuously adding UV curing initiators. In October 2018, the company increased capital to acquire 34.49% of the shares in Xinyu, Changsha, and increased UV curing initiator products. Xinyu, Changsha, is one of the major international manufacturers of UV curing initiator products. It has strong R&D capabilities and direct import and export rights. Not only have its products sold well all over the country, but over the years, more than 70% have been exported to more than 20 countries and regions overseas. After the company acquires it, it will further strengthen the overall strength of light-curing products, open up overseas channels, and improve its global layout. risk factors. Technology research and development fell short of expectations; production capacity construction fell short of expectations; and new product certification fell short of expectations. Investment suggestions: The company has strong R&D capabilities and rich product reserves. We are optimistic about the company's business layout and strategic planning for a long time. Affected by the decline in product gross margin, the company's performance growth rate declined. We lowered the company's EPS forecast for 2019-2020 to 0.64/0.86 yuan (the original forecast value was 0.82/1.10 yuan), and predicted its 2021 EPS to be 1.23 yuan. According to the company's historical valuation, according to 50 times PE in 2019, the target price was maintained at 32 yuan. Currently, company valuations tend to be reasonable and have been downgraded to the “increased holdings” rating.