Hengtong(SH:600226) Zheng Quan Zhi Xing·2025-08-25 16:30Core Viewpoint - Zhejiang Hengtong Holding Co., Ltd. reported a significant increase in revenue and net profit for the first half of 2025, driven primarily by the growth in copper foil sales and steam business profits [2][12][13]. Company Overview and Key Financial Indicators - The company achieved an operating income of 818.21 million yuan, a year-on-year increase of 45.80% [2][12]. - The total profit reached 140.72 million yuan, up 16.68% from the previous year [2][12]. - The net profit attributable to shareholders was 126.95 million yuan, reflecting an 8.91% increase [2][12]. - The company's total assets grew by 7.07% to 4.81 billion yuan, while net assets increased by 3.96% to 3.55 billion yuan [2][12]. Industry and Main Business Situation - The company's revenue primarily comes from the production and sales of electrolytic copper foil, veterinary drugs, and feed additives, as well as combined heat and power supply [12][13]. - The electrolytic copper foil market is expected to grow due to increasing demand from the PCB industry and the rise of AI applications, which require high-performance materials [12][13]. - The global PCB market is projected to grow at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2029, reaching approximately 94.66 billion USD by 2029 [12][13]. - The lithium battery copper foil market is also expanding, driven by the growth of the new energy vehicle sector and energy storage systems [12][13]. Business Performance and Development - The company’s subsidiary, Hengtong Copper Foil, has successfully developed high-value-added products such as reverse copper foil (RTF) and low-profile copper foil (LP), which are now in mass production [12][13]. - The company is actively expanding its market presence and enhancing its product offerings in high-end copper foil products to meet the increasing demands of the electronics industry [12][13]. - The company is investing in a small variety amino acid production base, which will add 11,880 tons/year of production capacity, enhancing its competitive position in the amino acid market [12][15]. Research and Development - Hengtong Copper Foil has established a robust R&D framework, collaborating with renowned universities to innovate and improve product quality [12][19]. - The company has applied for 70 patents and received 25 authorizations, indicating a strong commitment to technological advancement and intellectual property protection [12][19]. Market Trends - The demand for feed additives, particularly amino acids, is expected to grow due to the increasing focus on animal nutrition and the reduction of soybean meal in feed formulations [12][7]. - The veterinary drug market is also expanding, with the company focusing on international markets, particularly in South America and Asia [12][16].