Event: The company released its report for the third quarter of 2019. In the first three quarters, it completed revenue of 2,668 billion yuan, a year-on-year increase of 26.18%, net profit of 317 million yuan, a year-on-year decrease of 20.23%, and a net profit of 271 million yuan, a year-on-year increase of 71.84%, EPS of 0.36 yuan, and ROE of 10.1%. The third quarter completed revenue of 987 million yuan, a year-on-year increase of 20.46%, net profit of 176 million yuan, a year-on-year increase of 390.88%, and net non-net profit of 131 million yuan, a year-on-year increase of 83.71%. Comment: 1. Performance slightly exceeded expectations. In the future, new production capacity will be put into operation one after another to ensure that performance continues to improve month-on-month. The previous three-quarter report predicted net profit of 143 million yuan to 179 million yuan. The three-quarter report achieved performance above the upper limit of this forecast, slightly exceeding market expectations. The company's performance has improved quarterly since 2019. Continued capital expenditure in recent years has gradually been realized to performance with the fulfillment of orders, and the level of profit in a single quarter has reached its highest level in recent years. In the future, as the company continuously invests in new production capacity, it is expected that the quarterly results for the fourth quarter will continue to improve month-on-month. Sales expenses fell 42% year on year, mainly due to the large sales investment of Foshan Shouxin in the same period last year; financial expenses increased 799% year over year, mainly due to increased exchange losses; and the large return on investment income and changes in fair value was mainly due to the increase or decrease in the holding of Fuxiang shares and changes in its stock price. 2. Steady endogenous growth of traditional products, and expansion of mergers and acquisitions to create a vertically integrated industrial chain. The company's fluorinated intermediates are widely used due to their excellent characteristics in downstream products, and has established stable cooperative relationships with downstream German customers such as Merck, BASF, and Bayer. Orders for intermediates are growing steadily, and due to the explosion in northern Jiangsu in March, a large number of small factories that produce intermediates were shut down, and domestic orders increased a lot, which in turn drove the company's performance to an inflection point in 2019. Through acquisitions, the company has built a vertically integrated industrial chain from intermediates to APIs to formulations in the pesticide and pharmaceutical business sector. In particular, the layout of the pharmaceutical sector is relatively perfect, and the positive effects of future collaborative development will gradually become apparent. 3. 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. 4. Maintain the “Highly Recommended - A” rating. The company's net profit from 19-21 is estimated to be 403 million /594 million /773 million yuan, EPS is 0.46/0.67 /0.88 yuan, and corresponding PE is 18/12.2/9.4 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.