Event: The company released its performance forecast for the first quarter of 2018 on April 9, 2018. During the reporting period, the company achieved net profit attributable to shareholders of listed companies of 887.934 to 96.7451 million yuan, an increase of 235% to 265% over the same period last year. Key investment points: Leading in the microfiber industry, the company is gradually increasing its new production capacity at the Qidong base. The company is the largest supplier in the field of new microfiber materials in China. Its main products are microfiber leather, substrates and suede. Due to reasons such as coal conversion to gas and rising raw material costs at the Shanghai base, gross margin has declined. Thanks to the company's strong R&D technical strength, stable and reliable product quality, and rapid development of the industry, the 75 million meter microfiber material project at the company's Qidong base was gradually released. The company completed the first phase and second phase of the Qidong project in 2016 and 2017, and is expected to complete the second phase of the Qidong project in 2018, creating a “Huafeng speed”, and the company's market share continues to rise. As the Qidong project gradually reaches production, the company's impact on Shanghai's coal-to-gas conversion will gradually decrease, and gross profit will gradually rise. Weifutong completed the merger, benefiting from the rapid growth of the mobile payment industry, and cooperation between Weifutong and mainstream third-party payment platforms in the market such as WeChat and Alipay. The company's transaction amount and number of transactions increased significantly over the same period last year. The company's profit model is to charge technical service fees for each mobile payment transaction. The company's current key service direction is to provide banks and their merchants with services such as mobile payment access, merchant expansion, and other value-added mobile payment services. The company pioneered the first cross-border payment channel for Weifutong services and launched a comprehensive solution for overseas merchants integrating payment+tax refund+marketing. Profit forecast We expect the company to achieve net profit of 2.57/4.89/658 million yuan and EPS of 0.41/0.78/1.04 yuan in 2017/2018/2019, corresponding to PE 54.92/28.95/21.52 times, covering the “recommended” rating for the first time. Risk indicates that the growth rate of business falls short of expectations; process risk; mobile payment regulation risk