Tiansheng New Materials announced that the holding subsidiary Changzhou Haotian will increase capital by 11.6 million yuan for 5 million square meters/year high-speed coating lines and experimental line projects for the production of low-VOC environmentally friendly tape, special foam tape and other products. Downstream for the automotive, home appliance, mobile phone and other industries. Target customers include Tianjin Toyota, Shanghai Volkswagen, Haier, Hisense, Coolpad, ZTE, etc. The project is expected to be completed and put into operation by the end of 2014, with a target gross margin of around 20-25% and a target sales volume of around 80 million yuan. The investment in the project shows the company's increased emphasis on post-processing business. The company's tape business continued to grow rapidly in 2014. Changzhou Haotian's main business is the production and sale of PET tape, PET protective film and other products. The company's goal is to become the national number one brand in the domestic tape industry. In the second half of 2013, the company put into operation a dust-free tape line with an annual output of 10 million square meters/year, and revenue increased sharply by about 80% to 54 million yuan over the same year. It is estimated that Changzhou Haotian's sales will increase by more than 70% in 2014. High-end tape still needs to be imported domestically. Currently, there is still a need to import high-end adhesive tapes needed in domestic electronics, automobiles, etc. Among them, the low-VOC environmentally friendly tape market is almost occupied by international brands such as 3M, Sekisui, and Nitto, while Changzhou Haotian has carried out technical cooperation with international adhesive companies, and currently the performance of some products is at the leading international level. Maintain the company's “increase in holdings” rating, with a target price of 9.50 yuan. Tiansheng New Materials is a leading domestic polymer foam material enterprise. The company has an oligopoly on PVC structural foam, and the prosperity of the downstream wind power industry will improve in the next two years; through the introduction of post-processing products such as dust-free tape, the company's post-processing business revenue has grown rapidly in the past two years; at the same time, since 2014, the company has accelerated its deployment in the rail transit field through measures such as the acquisition of Xinguang Environmental Protection. We expect Tiansheng New Materials's 2014-2016 EPS to be 0.18, 0.25, and 0.35 yuan respectively, maintaining the company's “increased holdings” rating. The six-month target price is 9.50 yuan, corresponding to 38 times dynamic PE in 2015. Risk warning: (1) risk of economic fluctuations in the downstream wind power industry; (2) risk of progress in the acquisition of Xinguang Environmental; (3) risk of market expansion of new products.