KINGLAI MATERIALS(SZ:300260) Xin Lang Cai Jing·2025-08-27 02:42Event Overview - The company reported its 2025 mid-year results, with a total revenue of 1.409 billion yuan, a year-on-year decrease of 0.62%. In Q2, revenue was 737 million yuan, a slight increase of 0.99% year-on-year, which was below market expectations [1] - Semiconductor revenue was 441 million yuan, down 1.31% year-on-year, attributed to a decline in overseas orders due to geopolitical factors, while domestic demand remained strong [1] - Food segment revenue reached 846 million yuan, up 5.41% year-on-year, driven by a mild recovery in the dairy beverage industry and an increase in market share [1] - Pharmaceutical revenue was 122 million yuan, down 27.53% year-on-year, reflecting a continued industry downturn [1] - The company anticipates a robust order intake for H2 2025, suggesting potential revenue acceleration [1] Profitability Analysis - The company achieved a net profit attributable to shareholders of 108 million yuan, with a net profit margin of 7.67%, down 2.24 percentage points year-on-year [2] - Gross margin for H1 2025 was 24.46%, a decrease of 1.11 percentage points, primarily due to the impact of new factory depreciation in Taiwan and Malaysia [2] - The company’s operating expenses ratio was 15.66%, an increase of 0.93 percentage points year-on-year, with stable expense ratios across various categories [2] - A reduction in government subsidies led to a decrease in non-operating income by 6.48 million yuan, further impacting profit performance [2] Industry Positioning - The company is a leading domestic supplier of semiconductor gas/liquid systems, supplying major global players and driving domestic substitution [3] - The establishment of a joint venture in 2024 aims to penetrate the liquid cooling market, addressing critical issues such as sealing performance [3] - The liquid cooling segment is expected to experience significant growth due to increasing temperature control demands from high-performance chips, with the company positioned as a comprehensive supplier [3] Investment Outlook - Revenue forecasts for 2025-2027 have been adjusted to 3.049 billion, 3.579 billion, and 4.367 billion yuan, reflecting year-on-year growth rates of 7%, 17%, and 22% respectively [4] - Net profit forecasts for the same period are 252 million, 323 million, and 427 million yuan, with corresponding year-on-year growth rates of 11%, 28%, and 32% [4] - The company’s stock price of 39.73 yuan corresponds to a PE ratio of 64, 50, and 38 for the years 2025, 2026, and 2027, respectively, indicating a positive outlook for future earnings growth [4]