Event: The company released its 2019 three-quarter report. During the reporting period, it achieved operating income of 678 million yuan, a year-on-year decrease of 2.5%; net profit of 0.9 billion yuan, a year-on-year increase of 49.61%. Among them, Q3 achieved revenue of 248 million yuan in a single quarter, a year-on-year decrease of 30.09%, an increase of 11.06% over the previous year; net profit of the mother was 32 million yuan, an increase of 52.08% over the previous year, a decrease of 2.91% over the previous year. The company expects a profit of 121-145 million yuan in 2019, an increase of 50%-80% over the previous year. Main views: 1. The sales volume of wind power structural adhesives exceeded expectations, raw material prices fell, gross margin increased, and the company's wind power structural adhesives accounted for about 60% of the domestic market share, and were in an absolute leading position. The explosion of wind power installations in '19 led to a rapid recovery in sales of structural adhesives. Annual sales are expected to increase 30-50% year over year. The price of the raw material epoxy resin declined, and the gross margin of structural rubber increased significantly. The gross profit margin during the reporting period was 37%, up 10PCT from the previous year. The Q3 military trade order confirmed revenue of 150 million yuan in '18, which led to a large revenue base last year, and a year-on-year decline in revenue during the reporting period. However, the sales volume and gross margin of structural adhesives increased, and the performance during the reporting period rose sharply. 2. Wind power structural adhesives are entering overseas markets, and traditional adhesives are developing steadily. The company is actively promoting business connections with internationally renowned wind power manufacturers Vestas and Siemens Gamesa, laying the foundation for subsequent products to enter the international market faster. The company's sales of solvent-free polyurethane laminating adhesives have maintained steady growth, leading the market share in the domestic solvent-free laminating adhesive market. The company's sales scale in rail transit, consumer electronics, automobiles, and other application segments is also constantly expanding. Furthermore, the company will establish a northern production base in Caofeidian to consolidate its leading position in the industry. 3. Improve electromagnetic compatibility and power module business, in-depth layout of the military industry, and gradually improve the military business layout, forming advantages in the electromagnetic compatibility and power module business. The company's acquisition of B-Control Technology actively lays out the electromagnetic compatibility business field, and promises 46 million yuan in performance in 2019. Acquired 61% of the shares of Aerospace Hengrong, a subsidiary of Aerospace Development. Through this acquisition, the company will form a complete electromagnetic compatibility business value chain and promote the application of electromagnetic compatibility technology and products in military equipment and civilian applications. 4. Profit forecast and rating estimates that the company's net profit in 2019-2021 will be 1.4, 2.23 and 277 million yuan respectively. The corresponding EPS is 0.55, 0.88, and 1.10 yuan, respectively, and the corresponding PE is 23, 24, and 12 times, respectively. Considering that the company is a leading manufacturer of wind power structures and the continuous improvement of the military industry, it is given a valuation of 20 times over 20 years, with a target price of 17.6 yuan to maintain the “buy” rating. Risk warning: Downstream demand declined, and production of new construction projects fell short of expectations