The company is one of the fine chemicals manufacturers with the most complete industrial chain and the largest production capacity of fluorobenzene. Sales of traditional intermediate products are growing steadily, and epitaxial mergers and acquisitions have created a vertical integration platform for the industrial chain. A number of projects have been put into operation one after another to ensure future growth, giving it a “Highly Recommended - A” investment rating. The endogenous growth of traditional products is steady. The company is one of the fine chemicals manufacturers of fluorobenzene with the most complete product chain and the largest production capacity in the world. It has a comprehensive production platform to produce various products from the same starting materials. Fluorine-containing intermediates are widely used due to their excellent characteristics in downstream products. The company's traditional products are divided into pesticide intermediates, pharmaceutical intermediates and liquid crystal intermediates. Stable cooperative relationships have been established with downstream German customers such as Merck, BASF, and Bayer. Orders for intermediates are growing steadily, and small factories that produce intermediates have been shut down in large numbers due to the explosion in northern Jiangsu in March. Domestic orders have increased a lot, which has further promoted rapid growth in the company's performance quarter by quarter in 2019. Extend mergers and acquisitions to create a vertically integrated industrial chain. Based on the company's leading position in the field of intermediates, the company has built a vertically integrated industrial chain from intermediates to APIs to formulations through acquisitions in the pesticide and pharmaceutical business sector. The pesticide sector has acquired the sales platform Shanghai Nonghui and the original drug and formulation platform Jiangsu Subin, and the pharmaceutical sector has acquired the API platform Zhejiang Shouxin, the pharmaceutical platform Foshan Shouxin and Binhai Meikang, and the development of the API platform Yongtai Pharmaceutical. The extension of the industry chain is beneficial to the full development of the company's future product series, and the positive effects of future collaborative development will gradually become apparent. A number of projects have been put into operation one after another to ensure the company's future growth. The company's continuous capital expenditure ensures the company's future growth. A number of projects have been put into operation one after another to ensure that the company enters the fast track. Projects such as the production capacity of 500 tons of lithium bifluorosulfonimide are about to be put into operation. Yongtai palm, which is being built in Linhai, and the planned fine chemical base in Wuhai, Inner Mongolia, are all expansion and enhancement of the company's existing products and will become the main growth points for the next three years. Give the investment a “Highly Recommended - A” rating. We expect the company's net profit in 2019-2021 to be 403 million /594 million /773 million yuan, EPS of 0.49 million /0.72/0.94 yuan, respectively, and corresponding PE 19.2/13.1/10 times, respectively, giving it a “highly recommended-A” rating. Risk warning: Product sales volume falls short of expectations, profitability of asset acquisition falls short of expectations, and progress of projects under construction falls short of expectations.