Core Viewpoint - The company has experienced a significant recovery in profitability in its Thailand base during the second half of the year, driven by the launch of a new production line for photovoltaic adhesive films and strong overseas demand for solar products [1] Group 1: Company Performance - The company's Thailand base faced a decline in profitability in the first half of the year due to limitations in product types from older production lines [1] - The new production line for 250 million square meters of photovoltaic adhesive films has started operations, contributing to a substantial increase in profitability in the second half of the year [1] - The operational situation has normalized, and the company is maintaining a high production schedule in the fourth quarter, benefiting from the robust demand in the overseas solar market [1]

Core Viewpoint - Foster (603806) is actively exploring new technological requirements for space photovoltaic packaging materials while leveraging its expertise in UV cutoff and UV conversion technologies in HJT component packaging [1] Group 1: Company Capabilities - The company is the largest supplier of photovoltaic adhesive films globally, indicating a strong market position [1] - In addition to traditional photovoltaic adhesive materials, the company possesses technology and production capabilities for PI and PET materials, showcasing its versatility [1] Group 2: Industry Trends - The company aims to adapt to changes in the photovoltaic industry by developing new materials suitable for emerging application scenarios [1] - There is a focus on combining different material properties to innovate and meet the evolving demands of the industry [1]

Core Viewpoint - Foster (603806.SH) has developed proprietary PI material technology that is currently being commercialized in electronic materials. The company is exploring new requirements for space photovoltaic component packaging materials, which differ from terrestrial photovoltaic materials that primarily focus on moisture barrier performance [1] Group 1 - The company is investigating the unique challenges posed by space photovoltaic packaging materials, which need to address issues such as light radiation, unlike ground photovoltaic materials [1] - The technology accumulated in HJT components, including UV cutoff and UV conversion technologies, may play a role in future space photovoltaic applications [1] - The company's PI material technology is still in the exploratory phase and has not yet reached commercialization [1]

格隆汇12月29日丨福斯特(603806.SH)在互动平台表示，公司有自主研发的PI材料技术，该技术目前在 电子材料当中已经得到商业化的应用。公司目前正在探索太空光伏对组件封装材料的全新要求，相较于 地面光伏封装材料重点需要考虑水汽阻隔的性能，太空光伏的封装材料需要解决的是光照辐射等问题， 公司在HJT组件中积累的紫外截止和紫外转化等技术，以及公司的PI材料技术，未来可能会在太空光伏 中发挥作用，该等技术目前尚处于摸索阶段，尚未达到商业化水平。 ...

Group 1 - The report highlights that Jinma Amusement has achieved significant performance growth through technological breakthroughs and a comprehensive industry chain layout, covering 13 categories of large amusement facilities and 8 series of virtual immersive projects, with exports to nearly 50 countries [1][2][14] - The amusement equipment industry in China is undergoing structural upgrades driven by policy support and market demand, with the global theme park market expected to reach USD 55.9 billion in 2024, growing by 8.21% year-on-year, indicating a strong recovery trend [2][14] - Jinma Amusement is positioned as a benchmark enterprise in the industry, holding over 240 authorized patents and participating in the formulation of 26 industry standards, while continuously enhancing its R&D capabilities and accelerating the application of AI and robotics in the cultural tourism sector [2][14] Group 2 - The company has a broad customer network, deeply binding with leading domestic theme park groups and entering high-end markets in Europe and the "Belt and Road" emerging markets, with new orders expected to grow by over 40% year-on-year in 2024 [3][14] - Jinma Amusement's strategic investment in Shanghai Matrix Super Intelligence aims to promote the implementation of cultural tourism robotics, establishing a joint venture to create a digital service ecosystem [3][14] - The report projects Jinma Amusement's net profit attributable to shareholders to be CNY 1.09 billion, CNY 2.07 billion, and CNY 3.46 billion for 2025-2027, with corresponding PE ratios of 83, 44, and 26 times, respectively, and assigns a target price of CNY 81.16, indicating a potential upside of 40.7% from the current stock price [3][14]

Core Viewpoint - The company is a leading player in the photovoltaic film sector, maintaining a stable market share of around 50% over the past two years while strengthening its advantages during market consolidation [1] Group 1: Photovoltaic Film Business - The company holds a global leading market share in photovoltaic films and is actively expanding production capacity overseas, particularly in Thailand, to meet growing international demand [1] - The company continues to achieve industry-leading gross margins and profitability in its photovoltaic film business, significantly outperforming most peers, with many competitors facing negative or very low gross margins in the first half of 2025 [1] - The overall industry is characterized by a "one strong, many weak" dynamic, with the company maintaining good profitability despite the challenges faced by others [1] Group 2: Electronic Materials Business - The company is developing its electronic materials segment, with the photoresist dry film business expected to experience rapid growth, targeting a design capacity of 300 million square meters by 2025 [1] - The total capacity will reach 500 million square meters after the launch of a 200 million square meter project in Jiangmen in 2026, with the potential to produce high-end dry films priced above 30 yuan per square meter [1] - The recovery in consumer electronics demand and the acceleration of AI applications are expected to usher in a new growth cycle for the PCB industry, particularly in AI servers and automotive intelligence, presenting significant opportunities for the company's electronic materials business [1] Group 3: Functional Films and Global Supply Capacity - The company's functional film division, primarily focused on aluminum-plastic films, is entering a growth phase as customer validation is completed [2] - The shift towards semi-solid and solid-state batteries in lithium battery technology, led by domestic companies like CATL, is expected to create new market opportunities for the company's aluminum-plastic film business [2] - The company has established a scalable overseas production capacity, particularly in Southeast Asia, to meet the growing demand in international markets, with overseas sales accounting for over 20% of total revenue in the first half of 2025 [2] Group 4: Profit Forecast and Valuation - The company is recognized as the global leader in photovoltaic films, with a multi-product layout and strong cost control capabilities, achieving profitability while many competitors are incurring losses [3] - The company is executing a "platform-type new materials" strategy, with both the photoresist dry film and aluminum-plastic film businesses poised for growth, enhancing its ability to navigate through market cycles [3] - Projected net profits for the company are estimated at 1.024 billion yuan, 1.827 billion yuan, and 2.414 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding price-to-earnings ratios of 36, 20, and 15 times [3]

Core Viewpoint - The photovoltaic equipment sector in A-shares has seen a significant rise due to major silicon wafer companies raising their prices, improving industry profit expectations and reflecting strong terminal demand with a 41.9% year-on-year increase in solar power generation capacity as of the end of November [1][8]. Price Adjustments - On December 25, four leading silicon wafer companies collectively raised their prices, with 183N wafers priced at 1.4 yuan per piece, 210RN at 1.5 yuan per piece, and 210N at 1.7 yuan per piece, resulting in an average increase of 12% [4]. - The price increase is attributed to significant rises in upstream silicon material costs, with the average transaction price for multi-crystalline silicon n-type raw materials at 53,900 yuan per ton, reflecting a week-on-week increase of 1.32% [5]. Market Dynamics - The slight increase in multi-crystalline silicon prices and moderate transaction volume indicate a gradual recovery of market confidence, with expectations for both volume and price stabilization in the near term [6]. - The cost pressures from rising prices are being passed down to downstream components, with leading companies like LONGi Green Energy and JinkoSolar raising their prices by 0.02 to 0.05 yuan per watt [6]. Industry Actions - The photovoltaic industry is undergoing a "de-involution" initiative, with the establishment of a platform for integrating and acquiring multi-crystalline silicon capacity to address excessive competition [8]. - The Ministry of Industry and Information Technology has indicated a focus on capacity regulation and the orderly exit of outdated capacities, aiming to enhance industry standards and reduce price competition [8]. Demand and Growth - As of the end of November, the total installed power generation capacity in China reached 3.79 billion kilowatts, with solar power capacity exceeding 1.16 billion kilowatts, marking a substantial year-on-year growth of 41.9% [8]. - The cumulative scale of solar power generation from January to November was 27.489 million kilowatts, with an additional installed capacity of 2.202 million kilowatts in November alone [8]. Future Outlook - The photovoltaic industry is expected to experience a positive trend, with improvements in profitability across the main industry chain and a gradual recovery of the pricing system [9]. - Despite potential slowdowns in new installations and supply-demand imbalances in 2026, the ongoing de-involution efforts are anticipated to accelerate market clearing and reshape the industry landscape [9].

Overview - The report maintains a "stronger than market" rating for the renewable energy sector, highlighting that the demand for offshore wind power in China and Europe is increasing, leading to a rise in foundation demand and profit recovery for wind turbines. The "anti-involution" policy is expected to continue driving the photovoltaic sector, particularly with the expansion of perovskite technology. Overall, while short-term installation demand for renewable energy globally may be weak, there are structural opportunities in the market [1]. Key Points Supporting the Rating - The "anti-involution" trend is stabilizing wind turbine prices, enhancing profitability for manufacturers. China's offshore wind projects are becoming economically viable, contributing significantly to installed capacity. The demand for offshore wind in Europe and emerging markets is also on the rise [3]. - In the photovoltaic sector, the "anti-involution" policy remains the main theme, with a focus on the potential for capacity exits in battery and module production, as well as the industrialization potential of perovskite technology. Investment should prioritize growth-oriented new technology directions and the main industry chain benefiting from the "anti-involution" trend [3]. Investment Recommendations - For wind power, the report suggests prioritizing investments in the turbine segment, which is expected to recover profitability, and in the foundation segment that is progressing quickly in Europe. The offshore wind market is projected to grow significantly, with a focus on deep-sea projects [3]. - In the photovoltaic sector, the report emphasizes the importance of monitoring the "anti-involution" policy's impact on the industry, particularly regarding the exit of inefficient capacity and the enhancement of efficiency in battery and module production [3]. Long-term Outlook for Renewable Energy Demand - The report indicates that China's renewable energy demand is expected to remain robust in the long term, with an average annual installation capacity of over 400GW projected from 2025 to 2035. This is driven by the country's energy security needs and the ongoing transition to a low-carbon economy [13][16]. - The "136 Document" is noted for guiding the development of renewable energy projects towards market-oriented pricing, which is expected to stabilize project returns and promote high-quality development in the sector [31]. Photovoltaic Sector Insights - The report anticipates a moderate decline in photovoltaic installations in 2026 due to a phase of pre-installation in 2025, with projected installations of 290GW in 2025 and 180GW in 2026, reflecting a year-on-year decrease of 38% [33]. - The report highlights that the European photovoltaic market is facing growth challenges, with a forecasted installation of 64.2GW in 2025, indicating a slight decline. The U.S. market is also expected to experience pressure on growth due to policy adjustments [34][37]. Perovskite Technology Potential - Perovskite technology is identified as a key area for enhancing competitiveness in the photovoltaic manufacturing sector, with expectations for significant breakthroughs in industrialization by leading manufacturers in 2026 [33][44].

Market Overview - The Shanghai Composite Index closed at 3952.09 points, slightly below the previous day with a change of -0.19% [1] - The total trading volume of A-shares reached 17367.28 billion yuan [1] Stocks Breaking the Annual Line - A total of 27 A-shares have surpassed the annual line today, with notable stocks showing significant deviation rates [1] - The stocks with the highest deviation rates include: - Baiana Qiancheng (300291) with a deviation rate of 13.64% and a daily increase of 20.08% [1] - Pioneer Precision (688605) with a deviation rate of 6.29% and a daily increase of 6.72% [1] - Jikai Co., Ltd. (002691) with a deviation rate of 5.66% and a daily increase of 9.95% [1] Stocks with Smaller Deviation Rates - Stocks with smaller deviation rates that have just crossed the annual line include: - Zheshang Bank (601916) with a deviation rate of 0.03% and a daily increase of 0.33% [2] - Electric Investment and Financing (000958) with a deviation rate of 0.03% and a daily increase of 0.31% [2] - West Securities (603776) with a deviation rate of 0.07% and a daily increase of 0.12% [2]

Summary of Foster's Conference Call Company Overview - Foster has a healthy balance sheet with a debt-to-asset ratio below 20% and no bank debt, holding approximately 8 billion yuan in cash reserves to support business development and return value to investors. The cash dividend ratio exceeded 50% last year, with over 600 million yuan distributed, and this trend will continue this year [2][5]. Industry Insights - The price of EVA films is expected to rebound by 2026, with Foster maintaining low inventory levels of about one month. The proportion of white EVA films is decreasing, with EVA and POE films each accounting for nearly half of the production [2][7]. - The photovoltaic new materials sector is anticipated to remain stable, with overseas markets maintaining high demand, potentially increasing market share. Electronic materials are expected to grow by over 30%, and the aluminum-plastic film business is also projected to grow by over 30%, driven by solid-state battery applications [2][11]. Business Performance - In the photovoltaic sector, Foster's film production is clearing quickly, with a stable market share. The overseas market, particularly in Thailand and Vietnam, accounts for about 20% of sales. A market reversal is expected in the second half of 2026 [3]. - The electronic materials segment is experiencing explosive demand, especially in high-end electronic materials for servers, leading to significant sales growth [3]. - The aluminum-plastic film business is rapidly developing, with current production capacity at 30 million square meters, expanding to 50 million square meters, and expected to achieve profitability next year [4][23]. Future Projections - The company anticipates a steady increase in shipments in the photovoltaic new materials sector in 2026, with uncertainties in the domestic market but high expectations for overseas markets. The growth in electronic materials and aluminum-plastic films is expected to contribute significantly to overall business growth [11]. - The solid-state battery market is projected to drive demand for aluminum-plastic films due to their lightweight and extensibility advantages [3][11]. Production and Expansion Plans - Foster's overseas production capacity is nearly fully utilized, with production and sales doubling, primarily serving clients in India and the Middle East. The company is evaluating plans for a factory in the U.S. to adapt to policy changes [16]. - A domestic project worth 250 million yuan has been delayed until the end of next year, with strategic adjustments based on market demand [16]. Product Development and Innovations - Foster is advancing in the sensitive area of photonic films for space applications, showcasing the company's ability to innovate by combining materials from different fields [9]. - The company is also focusing on high-end electronic materials, with a significant push into advanced substrate applications, particularly in the automotive and server sectors [18]. Financial Health and Risk Management - The company maintains a strong financial position with a low risk of impairment due to increasing overseas sales, which are less likely to default [24]. - The average price of dry films is around 5 yuan, with high-end products reaching up to 30 yuan, and the overall gross margin is currently at 24% [20]. Conclusion - Foster is well-positioned for growth in the photovoltaic, electronic materials, and aluminum-plastic film sectors, with a strong financial foundation and strategic plans for expansion and innovation. The company is expected to continue delivering value to investors while navigating market challenges and opportunities.