Guide to this report: 2019H1's performance growth benefited from a central upward trend in product prices. The commissioning of the first phase of the Huludao project in 2019 is equivalent to reinventing another pioneer. In the long run, the company's products are pesticides with low interactive resistance, which highlights the problem of benefit resistance and increases the rating. Key investment points: Maintain an increase in holdings. The first phase of the Huludao project is progressing smoothly. The commencement of production in the second half of 2019 will drive the company's performance growth and maintain the profit forecast. The estimated EPS for 2019-21 is 2.70/3.77/5.04 yuan, keeping the target price unchanged at 52.78 yuan, corresponding to 14 times PE in 2020, and maintaining an increase in holdings rating. The upward trend in price centers drives performance growth: 2019H1 achieved revenue of 858 million yuan, an increase of 2.61% over the previous year, and net profit of 12,700 yuan, an increase of 3.25% over the previous year, which is basically in line with market expectations. 2019Q2 achieved revenue of 497 million yuan, -5.10% year-on-year, and net profit of 86 million yuan, -8.23% year-on-year. The climate disaster had a large impact on the global crop market in the first half of 2019, and pesticide usage declined. The company's performance continued to grow mainly due to the upward shift in the company's product price center. The average prices of 2019H1 enoxazone, isoxazone, mikara, herbicides, and enylmorpholine were 20.22, 10.01, 21.48, 23.34, 1575 million yuan/ton, +13.79%, +4.49%, +10.04%, +24.35%, +60.71%. The negative performance growth in the second quarter of 2019 was mainly due to a high base. In the second quarter of 2018, pesticide companies in Lianyungang and other regions stopped production due to environmental protection, and company inventories were drastically removed, resulting in performance in the second quarter of 2018 exceeding normal years and returning to normal in '19. Stricter chemical safety regulations affect the supply of major products. As a result of the Xiangshui incident, some enterprises stopped production. Xiangshui Chemical Park accounted for 50%, 15%, and 12% of the country's production capacity of isoxaxone, herbicides, and enoxone. Chemical inspections will continue to put pressure on industry supply. Currently, the price of enoxone has been raised to 180,000 yuan/ton. The Huludao project was put into operation within 19 years. The first phase of the company in Huludao, Liaoning, will be put into operation in the second half of '19. The first phase invested 770 million yuan to build 6,000 tons of original drugs and 10,000 tons of formulations. It is estimated that full production will be achieved in 2020, with full production profit reaching 190 million yuan. In 2019, the company will continue to build Phase II and Phase III. Risk warning: Product prices are falling, and demand is lower than expected.