Hengtong(SH:600226) Zheng Quan Ri Bao Zhi Sheng·2025-08-25 13:38Core Viewpoint - Hengtong Holdings reported significant growth in revenue and net profit for the first half of 2025, driven primarily by its copper foil business, which is positioned as a key growth engine for the company [1][2]. Financial Performance - The company achieved a revenue of 818 million yuan, representing a year-on-year increase of 45.80% - Net profit attributable to shareholders was 127 million yuan, up 8.91% year-on-year [1]. Business Segments - The copper foil business contributed 553 million yuan in revenue, accounting for 67.59% of total revenue, with sales volume increasing by 131.33% [1]. - The company has a production capacity of 10,000 tons/year for electronic circuit copper foil and 5,000 tons/year for lithium battery copper foil, with ongoing construction to expand capacity [3]. Market Demand and Trends - The demand for electronic circuit copper foil is closely linked to the rapid development of AI computing power, 5G communication, and new energy vehicles, with a projected compound annual growth rate of 5.2% for global PCB output from 2024 to 2029 [1][2]. - The lithium battery copper foil market is driven by the needs of new energy vehicles and energy storage systems, with increasing demands for higher energy density and longer battery life [1]. Strategic Direction - Hengtong Holdings is focusing on high-end copper foil products, avoiding price wars, and emphasizing R&D and industrial application to capture domestic substitution opportunities [2]. - The company has developed high-value-added products such as RTF, LP, and HTE copper foils, which have already entered mass production [2]. Production and Supply Chain - The company’s production base in Deyang, Sichuan, benefits from local sulfuric acid resources and copper material storage advantages, which help reduce production and transportation costs [3]. - Hengtong Holdings is strengthening partnerships with leading PCB manufacturers, with products being increasingly adopted by major clients [2][3]. Other Business Developments - In addition to copper foil, the company is advancing in the biosynthesis sector, with a project in Inner Mongolia expected to add 11,880 tons/year of amino acid production capacity [3]. - The export performance of products like Monensin is strong, with a 23.50% year-on-year increase in sales [3].