Core Viewpoint - The glass fiber reinforced plastic (GFRP) fishing boats industry in China is poised for significant growth due to the aging of existing wooden and small steel fishing vessels, with government initiatives promoting the replacement and modernization of fishing equipment. The number of GFRP fishing boats is expected to increase to 12,000 by 2025, representing a 20% year-on-year growth [1][14]. Industry Overview - GFRP fishing boats account for only about 2% of the total fishing vessels in China, compared to 80-90% in developed fishing nations [1][14]. - The existing wooden and small steel fishing vessels are over 50% aged, necessitating urgent updates and replacements [1][14]. - The Liaoning province has initiated a plan to promote large-scale equipment updates in the fishing industry, focusing on phasing out old wooden boats and enhancing subsidies for new steel or composite material boats [1][14]. Economic Aspects - GFRP fishing boats exhibit excellent energy-saving capabilities, with insulation performance leading to ice-saving rates of 20% to 40% and fuel savings of 10% to 15% compared to steel boats [4][5]. - The lifespan of GFRP boats can reach up to 50 years, significantly longer than the 10-15 years typical for steel boats, which require regular maintenance [4][5]. Industry Development History - The development of GFRP fishing boats in China began in the 1970s, with the first boat constructed in 1974 [7][8]. - The industry faced challenges in the 2000s due to quality issues and incidents, but recent government support has led to significant advancements in construction capabilities [7][8]. Industry Chain - The upstream of the GFRP fishing boat industry includes raw materials such as liquid synthetic resins and glass fibers, which are crucial for the durability and safety of the boats [8]. - The midstream involves the production and manufacturing of GFRP boats, while the downstream encompasses their applications in freshwater and marine aquaculture, marine capture, and seedling production [8]. Competitive Landscape - The GFRP fishing boat market in China is primarily dominated by state-owned enterprises, followed by military and private enterprises, with the former holding the largest market share [16][17]. - Key players in the industry include Jianglong Shipbuilding, Weihai Zhongfu Xigang Shipbuilding, and Qinhuangdao Yaohua Equipment Group [16][17]. Future Trends - The demand for GFRP fishing boats is expected to grow continuously due to the booming marine economy and increasing consumer interest in marine tourism [21]. - The industry is moving towards automation and smart technology integration, enhancing production efficiency and product quality [22]. - There is a growing emphasis on green development, with a focus on using recyclable materials and renewable energy technologies to reduce environmental impact [23][24].

Investment Rating - The investment rating for the construction materials industry is "Positive" (maintained) [4] Core Viewpoints - The demand for high-end electronic fabrics is accelerating, leading to a new round of competition among fiberglass companies. The shortage of low thermal expansion coefficient (Low CTE) glass fabric raw materials and the surge in order demand have resulted in significantly extended delivery times for BT materials, confirming the ongoing supply-demand imbalance in high-end electronic fabrics. The rapid development of the AI industry is driving hardware upgrades, increasing the demand for high-speed, high-frequency PCB boards, which in turn raises the performance requirements for upstream electronic fabrics [4] - The report suggests focusing on companies with existing or potential layouts in high-end electronic fabrics, such as Honghe Technology, Zhongcai Technology, and China Jushi [4] Summary by Sections 1. Sector Tracking - The construction materials index (Shenwan) rose by 0.2%, while the cement, glass fiber, and renovation materials indices fell by 0.2%, 0.2%, and rose by 0.6% respectively. The top five gainers included Zhongqi New Materials (+20.5%) and Honghe Technology (+17.1%) [9] 2. Industry Dynamics - In May, the average price of new homes in 100 major cities in China rose by 0.30% month-on-month to 16,815 RMB per square meter, while the average price of second-hand homes fell by 0.71% year-on-year [14] - The sales revenue of the top 100 real estate companies in the first five months of 2025 was 1,443.6 billion RMB, a year-on-year decrease of 10.8% [14] - The balance of real estate loans in RMB at the end of the first quarter of 2025 was 53.54 trillion RMB, with a year-on-year growth of 0.04% [14] 3. Data Tracking 3.1 Cement - The average price of 42.5 cement nationwide was 367.8 RMB per ton, down 3.0 RMB per ton month-on-month and down 6.3% year-on-year [15] - The cement inventory ratio was 65.7%, up 0.4 percentage points month-on-month [15] 3.2 Float Glass - The average price of 5mm float glass was 1,370.3 RMB per ton, down 24.6 RMB per ton month-on-month and down 409.5 RMB per ton year-on-year [32] 3.3 Photovoltaic Glass - The average price of 2.0mm coated photovoltaic glass was 13.6 RMB per square meter, down 0.1 RMB per square meter month-on-month [37] 3.4 Glass Fiber - The average price of alkali-free glass fiber yarn was 4,705.0 RMB per ton, unchanged month-on-month and up 40.0 RMB per ton year-on-year [43] 3.5 Carbon Fiber - The average price of large tow carbon fiber was 72.5 RMB per kilogram, unchanged month-on-month and down 5.0 RMB per kilogram year-on-year [46]

Investment Rating - The report maintains an "Overweight" rating for the construction materials sector [1] Core Viewpoints - The construction materials sector is experiencing fluctuations at the bottom of the PMI index, with expectations for a gradual recovery in demand driven by government policies and market dynamics [4][16] - The report emphasizes the potential for recovery in the home decoration materials segment, particularly with the implementation of "old-for-new" subsidies and service consumption stimulus policies [4][16] Summary by Sections 1. Sector Overview - The construction materials sector has shown a slight increase of 0.18% in the past week, outperforming the Shanghai Composite Index and the Wind All A Index, which decreased by -1.08% and -0.02% respectively [4] - The report highlights that the cement market price is currently at 367.8 RMB/ton, down by 3.0 RMB/ton from the previous week and down by 6.3 RMB/ton compared to the same period last year [20][21] 2. Cement Market - The average cement inventory ratio is reported at 65.7%, an increase of 0.4 percentage points from the previous week, but down by 2.5 percentage points year-on-year [25] - The average daily cement shipment rate is 47.8%, up by 1.4 percentage points from the previous week but down by 5.3 percentage points compared to last year [25] - The report notes that the cement price is expected to stabilize or slightly rebound in the coming months due to supply-side adjustments and demand recovery [12][19] 3. Glass Fiber Market - The report indicates that the profitability of the glass fiber sector remains low, with many second and third-tier companies operating at breakeven or loss [13] - The demand for high-end products in wind power and thermoplastics is expected to continue growing, which may support profitability for leading companies [13] - The report recommends companies like China Jushi and suggests monitoring others such as Zhongcai Technology and Shandong Fiberglass [13] 4. Glass Market - The glass sector is facing weak terminal demand, with inventory levels remaining high and price pressures expected to increase as the market enters a seasonal downturn [14][15] - The report recommends Qibin Group as a leading player in the glass market, with a focus on its cost advantages and growth potential in photovoltaic glass [14] 5. Home Decoration Materials - The report highlights the positive impact of government policies aimed at boosting domestic demand and stabilizing the real estate market, which is expected to enhance the demand for home decoration materials [16] - Companies such as Beixin Building Materials and Arrow Home are recommended for their strong growth potential and market positioning [16]

Summary of Conference Call Notes Industry Overview - The conference call discusses the composite materials industry, specifically focusing on high-performance electronic fabrics and the price increase of fiberglass products by Nittobo, a leading Japanese company in this sector [1][2]. Key Points and Arguments - **Nittobo Price Increase**: Nittobo announced a 20% price increase for its fiberglass products in the composite materials division, effective from August 1, 2025. This increase may impact certain high-performance electronic fabric products [1]. - **Profit Elasticity of Mainland Manufacturers**: Detailed calculations were provided regarding the profit elasticity of mainland manufacturers in the high-performance electronic fabric sector. - **Zhongcai Technology**: Identified as a long-term hold with considerable upside potential. The consensus is that profits from high-performance electronic fabrics will be significant in 2025 and 2026, with a projected market value of 390 billion for new materials and main business combined [1]. - **Honghe Technology**: The company has pure products but is considered overvalued. It is suggested to maintain a small position to capitalize on short-term volatility. The contribution of high-performance electronic fabrics to profits is noted to be around 30% in Q1 2025 [1]. - **International Composite Materials**: The company has a comparable scale in high-performance electronic fabrics to Honghe Technology, with a cautious outlook. The reasonable market value is estimated at approximately 1.5 billion to 3 billion for 2025 and 2026, respectively [2]. Additional Important Insights - The overall sentiment in the industry indicates a focus on the potential for profit growth driven by price increases and market dynamics. The emphasis on maintaining positions in companies like Zhongcai Technology suggests a bullish outlook on the sector's future profitability [1][2].

证券代码：603256 证券简称：宏和科技 公告编号：2025-034 宏和电子材料科技股份有限公司 2024年年度股东大会决议公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 本次会议是否有否决议案：无 一、 会议召开和出席情况 (一)股东大会召开的时间：2025 年 5 月 28 日 (二)股东大会召开的地点：宏和电子材料科技股份有限公司行政楼二楼会议室 （上海市浦东新区康桥工业区秀沿路 123 号） (三)出席会议的普通股股东和恢复表决权的优先股股东及其持有股份情况： | 1、出席会议的股东和代理人人数 | 220 | | --- | --- | | 2、出席会议的股东所持有表决权的股份总数（股） | 745,640,785 | | 3、出席会议的股东所持有表决权股份数占公司有表决权股 | 84.7581 | | 份总数的比例（%） | | (四)表决方式是否符合《公司法》及《公司章程》的规定，大会主持情况等。 公司 2024 年年度股东大会由公司董事长毛嘉明先生主持，会议采用现场投 票和网络投票相结 ...

40 thFloor Bund Center, 222 East Yan An Road, Shanghai 200002, P.R.China 中国上海市延安东路 222 号外滩中心 40 楼 200002 Tel/电话:(8621) 6249 6040 Fax/传真:(8621) 6248 2266 Website/网址: www.jinmao.com.cn 上海市金茂律师事务所 关于宏和电子材料科技股份有限公司 2024年年度股东大会之法律意见书 致：宏和电子材料科技股份有限公司 宏和电子材料科技股份有限公司（以下简称"公司"）2024 年年度股东大会 （以下简称"本次股东大会"）于 2025 年 5 月 28 日下午在公司会议室召开。上海 市金茂律师事务所（以下简称"本所"）经公司聘请并接受公司委托，委派翟正洪 律师、赵可沁律师（以下简称"本所律师"）出席本次股东大会，并根据《中华人 民共和国公司法》（以下简称"《公司法》"）、《中华人民共和国证券法》（以 下简称"《证券法》"）、中国证券监督管理委员会《上市公司股东会规则》（以 下简称"《股东会规则》"）等相关法律、法规和规范性文件以及《宏和电子材料 ...

Investment Rating - The report maintains an "Accumulate" rating for the company [6] Core Views - The company has shown a strong performance turnaround, with Q1 2025 profits exceeding the total profits of the previous year, achieving a revenue of 2.46 billion yuan, a year-on-year increase of 29.52% [1][2] - The electronic fabric business has experienced high growth, with a revenue increase of 25% to 780 million yuan in 2024, driven by sales growth and favorable policies [2] - The company is positioned for high-end product development, particularly in LowDK/CTE fields, which is expected to enhance profitability as production capacity increases [2][4] Financial Performance - In 2024, the company achieved a total revenue of 835 million yuan, a year-on-year increase of 26.24%, with a net profit of 23 million yuan, marking a significant recovery from losses [1][5] - The gross profit margin improved significantly, reaching 28% in Q1 2025, up 15.9 percentage points year-on-year [3] - The company’s operating cash flow turned positive in 2024, with a net cash flow of 179 million yuan [3] Profitability Forecast - The forecast for net profit is adjusted upwards, with expected net profits of 150 million yuan in 2025 and 230 million yuan in 2026, reflecting a strong recovery trajectory [4][5] - The company is expected to achieve a gross margin of 30.77% by 2027, indicating a continuous improvement in profitability [5][16] Market Position - The company is recognized for its leading capabilities in high-end electronic fabric manufacturing, which is anticipated to facilitate domestic substitution in high-end markets [4][5] - The company has established partnerships with notable clients in the industry, enhancing its market position and growth potential [2]

Investment Rating - The report maintains an "Accumulate" rating for the company [6] Core Views - The company has shown a strong performance turnaround, with Q1 2025 profits exceeding the total profits of the previous year, achieving a revenue of 2.46 billion yuan, a year-on-year increase of 29.52% [1][2] - The electronic fabric business has experienced high growth, with a revenue increase of 25% to 780 million yuan in 2024, driven by sales growth and favorable policies [2] - The company is positioned for high-end product development, particularly in LowDK/CTE fields, which is expected to enhance profitability as production capacity increases [2][4] Financial Performance - In 2024, the company achieved a total revenue of 835 million yuan, a year-on-year increase of 26.24%, with a net profit of 23 million yuan, marking a significant recovery from previous losses [1][5] - The gross profit margin improved significantly, reaching 20% in Q4 2024 and 28% in Q1 2025, with net profit margins turning positive in the last two quarters [3] - The company forecasts net profits of 150 million yuan and 230 million yuan for 2025 and 2026, respectively, indicating a positive growth trajectory [4][5] Market Position and Strategy - The company is leveraging its leading manufacturing capabilities in high-end electronic fabrics to accelerate domestic substitution in the market [4] - The strategic focus on high-value-added products is expected to drive further improvements in profitability and market share [3][4]

Core Viewpoint - Honghe Technology has successfully turned around its net profit in both Q1 2025 and 2024, demonstrating a strong recovery in revenue and profitability driven by product optimization and cost control [1][2][6]. Financial Performance - In Q1 2025, Honghe Technology achieved revenue of 246 million yuan, a year-on-year increase of 29.52%, and a significant growth of 55.34% compared to Q1 2024 [1]. - The net profit attributable to shareholders reached 30.87 million yuan, a staggering increase of 482.59% year-on-year, with a non-recurring net profit of 27.48 million yuan, up 356.14% [1]. - The gross margin improved to 28.06%, up 15.89 percentage points from 12.17% in Q1 2024, attributed to a higher proportion of high-end products and lower raw material costs [1][2]. Product and Market Dynamics - Honghe Technology specializes in mid-to-high-end electronic-grade glass fiber cloth and ultra-fine yarn, with a focus on high-end products such as ultra-thin cloth (thickness < 28μm) and super-thin cloth (28-35μm) [2][3]. - The company has seen a significant increase in high-end product sales, which now account for over 60% of its total sales, primarily used in 5G smartphone substrates and IC packaging substrates [2][3]. - The demand for low-dielectric functional products has surged, with order volumes increasing by 120% year-on-year, driven by the needs of AI servers and high-speed communication devices [3]. R&D and Competitive Position - R&D investment in Q1 2025 reached 13.7 million yuan, a year-on-year increase of 42.7%, focusing on advanced products like Low-Dk 2.3 and Low CTE materials [5]. - Honghe Technology has entered the supply chains of major clients such as Panasonic and Hitachi, with high-end customer revenue accounting for over 80% of total income [5][6]. - The company has a production capacity utilization rate of 95% in Q1 2025, a significant increase of 20 percentage points from the same period in 2024, reflecting enhanced scale effects [3][6]. Industry Trends and Opportunities - The domestic PCB industry is benefiting from the push for localization in the semiconductor sector, providing market opportunities for Honghe Technology [6][7]. - The company plans to invest approximately 720 million yuan in a new high-performance glass fiber yarn production line, expected to reduce production costs and enhance competitiveness [7]. - The electronic-grade glass fiber cloth industry is characterized by high concentration, with major global players, but domestic companies like Honghe Technology are narrowing the gap through technological innovation and capacity expansion [3][4].

Market Overview - The Shanghai Composite Index fell by 0.23% on April 30, with 21 out of the 28 sectors rising, led by the computer and automotive sectors, which increased by 2.33% and 1.59% respectively [2] - The banking and steel sectors experienced the largest declines, with decreases of 2.09% and 1.35% respectively [2] Capital Flow Analysis - The main capital outflow from the two markets totaled 1.431 billion yuan, with 13 sectors seeing net inflows [2] - The computer sector had the highest net inflow of 2.428 billion yuan, while the automotive sector followed with a net inflow of 2.231 billion yuan [2] Construction Materials Sector - The construction materials sector declined by 0.82%, with a net capital outflow of 33.1015 million yuan [3] - Among the 71 stocks in this sector, 26 stocks rose, including 2 that hit the daily limit, while 38 stocks fell [3] - The top three stocks with the highest net inflow in the construction materials sector were Jiuding New Materials (7.377 million yuan), ST Nachuan (3.575 million yuan), and Sichuan Jinding (2.219 million yuan) [3][5] Notable Stocks in Construction Materials - The stocks with the largest net outflows included Tibet Tianlu (-7.277 million yuan), Beixin Building Materials (-3.740 million yuan), and Jianfeng Group (-2.435 million yuan) [3][4] - Other notable stocks with significant capital outflows included Conch Cement (-2.317 million yuan) and Honghe Technology (-2.014 million yuan) [4]