Event: The company released its report for the first quarter of 2019. The company achieved operating income of 442 million yuan in the first quarter, an increase of 16.34% over the previous year, and realized net profit of 79.8879 million yuan, an increase of 34.37% over the previous year. Investment points: The company's pesticide and flame retardant business continues to be booming, driving rapid growth in performance. The company's performance in the first quarter maintained high growth, mainly due to the continued high prosperity of the two main businesses, which achieved a sharp rise in volume and price: in terms of pesticides, sales of 5,627 tons of various pesticides and intermediates in the first quarter, an increase of 8.2% over the previous year, with an average price of 50,500 yuan/ton, an increase of 3.48% over the previous year. In terms of flame retardants, a total of 2403 tons of various flame retardants were sold in the first quarter, an increase of 25% over the previous year, with an average price of 41,200 yuan/ton, an increase of 4.04% over the previous year. The company has plenty of reserve projects. As an important medium- to long-term profit growth point, the company still has many new projects to be completed and put into operation in the future, including: in terms of pesticides, the company's technical improvement project for pesticide formulation products with an annual output of 9,000 tons is expected to be completed on December 31, 2019, and the annual production of 1,000 tons of pyridinamide project is expected to be completed by December 31, 2020; in terms of flame retardants, the company's annual production of 15,000 tons of decabromodiphenyl ethylene and related supporting projects is expected to be completed on June 30, 2020. Completion. The commissioning of these projects will become an important profit growth point for the company in the future. The Ningxia project opens up space for future growth and has broad imagination. In order to improve the company's industrial layout and medium- to long-term strategic development plans and further optimize the company's business structure, the company established Suli (Ningxia) New Material Technology Co., Ltd. in December 2018 at the Ningdong Energy and Chemical Base in Ningxia Hui Autonomous Region. It plans to invest in the construction of a number of fine chemical product production lines related to pesticides, flame retardants, fertilizers and new materials, with a total scale of 168,500 tons, using the superior resources and vast development space of the central and western regions to improve the company's product structure and enhance the company's overall competitiveness and resilience to risks to cultivate new profit growth points for the company. Profit forecasts and ratings expect the company's EPS from 2019 to 2021 to be 2.05 yuan, 2.37 yuan, and 2.66 yuan respectively, corresponding to the latest closing price PE of 12 times, 10 times, and 9 times, respectively, maintaining the “recommended” rating. Risk warning. The progress of the new project fell short of expectations; the performance of promycin fell short of expectations; the exchange rate fluctuated greatly