Yongtai Technology, the leading fluorine fine chemicals leader in China, is the leading fluorine fine chemicals leader in China. After experiencing continuous capital expenditure in the early stages, the company has officially ushered in an inflection point in performance since 2018. In 2019-2020, the company's Yongtai Pharmaceutical Pharmaceutical, Yongtai Palm API, lithium bifluorosulfonimide, and CF photoresist are expected to release concentrated performance. At the same time, the company has a flexible production platform to create an integrated industrial chain extending from intermediates to formulations. The new Inner Mongolia project is expected to further improve the industrial chain. We expect the company's EPS in 2019-2021 to be 0.47, 0.66, and 0.86 yuan respectively, covering the “increase in holdings” rating for the first time. Traditional businesses seek steady progress. The company's traditional business includes liquid crystal chemicals and pesticide chemicals. Among them, demand for LCD panels downstream of liquid crystal chemicals is growing steadily. Continued transfer of production capacity to the mainland is expected to drive an increase in the localization rate of mixed crystals, and the company's main downstream customer, Merck, Germany, may shrink its share. In addition, the company set an increase of 160 million yuan in 2014 to build a 1,500-ton photoresist project. It has now been completed and accepted, and it is expected that it will successfully pass Huaxing Optoelectronics certification and release. In terms of pesticide chemicals, 2019H1 has benefited in stages from the Xiangshui explosion. Improved orders and prices of pesticide intermediates have led to high sector growth. In the long run, the development prospects for downstream fluorinated pesticides are good, and the acquisition of Shanghai Nonghui and Jiangsu Subin has extended to pesticide production and trade. The pharmaceutical business has entered the harvest period, and the downstream of the company's fluorine-containing pharmaceutical intermediates mainly corresponds to siglitine, a major variety. Subsequent approval of domestic replication declarations is expected to increase opportunities for intermediates. At the same time, fluorine atoms have unique physiological activity, and the proportion of fluorine-containing pharmaceuticals is expected to trend upward in the future. The company's current Yongtai Pharmaceutical Pharmaceutical Pharmaceutical Pharmaceutical Project and Yongtai Palm API Project have experienced initial capital expenditure investment, and the production line has been completed and partially upgraded. After passing the US drug certification, the production line can be successfully released in volume and release performance. Lithium hexafluorophosphate has a cost advantage, and LiFSi is expected to achieve industrialization. According to GGII, the price of lithium hexafluorophosphate was 95,000 yuan/ton by the end of October, approaching the cost line of the vast majority of manufacturers. Although there was no significant improvement in industry supply and demand in 2019, the price of lithium hexafluorophosphate is close to the bottom. The company's main raw materials have low production unit consumption and self-supply of high-purity lithium fluoride, with significant cost advantages. LiFSi has significant performance advantages. Currently, as an auxiliary additive for lithium hexafluorophosphate, initial industrialization is expected as the process matures and costs drop. The company has a production capacity of 500 tons of LiFSi and has already been initially tested. The company has a flexible integrated production platform. The Inner Mongolia project is expected to further improve the industrial chain. The company's production of fluorine fine chemicals begins with basic chemical raw materials at the source. It has the integrated production of a series of products on the same industrial chain. It has a flexible integrated production platform, which has the advantages of reducing production costs and adjusting production volume flexibly. Furthermore, the company is building an integrated industrial chain extending from intermediates to formulations, and the new Inner Mongolia project is expected to further improve the intermediates industry chain. The first coverage was given a “holdings increase” rating. We expect the company's EPS in 2019-2021 to be 0.47, 0.66, and 0.86 yuan. Combined with the valuation level of comparable companies (22 times PE in 2019), considering business differences, the company was given 21-23 times PE in 2019, corresponding to the target price of 9.87-10.81 yuan. For the first time, coverage was given an “increase in holdings” rating. Risk warning: The risk of putting new projects into operation falls short of expectations, and trade frictions increase the risk.