PhiChem(SZ:300398) Xin Lang Cai Jing·2025-08-29 00:46Core Viewpoint - Feikai Materials reported a steady growth in revenue and significant increase in net profit for the first half of 2025, indicating resilience in its business despite challenges in specific segments [1][2]. Group 1: Financial Performance - In H1 2025, the company achieved revenue of 1.46 billion yuan, a year-on-year increase of 3.8%, and a net profit attributable to shareholders of 217 million yuan, up 80% year-on-year (non-recurring profit increased by 40%) [1]. - For Q2 2025, the company recorded revenue of 760 million yuan, a 2.9% increase year-on-year, and a net profit of 97 million yuan, reflecting a 61% year-on-year growth [1]. - The company proposed an interim dividend of 0.04 yuan per share (before tax) [1]. Group 2: Segment Performance - The screen display materials segment generated revenue of 706 million yuan, up 4.6% year-on-year, although the gross margin decreased by 1.4 percentage points to 38.3% [2]. - The semiconductor materials segment achieved revenue of 331 million yuan, a 1.1% increase year-on-year, with a gross margin improvement of 1.27 percentage points to 37.94% [2]. - The ultraviolet curing materials segment reported revenue of 307 million yuan, a 6.7% increase year-on-year, but the gross margin fell by 1.38 percentage points to 36.71% [2]. - The sale of 100% equity in Dairui Technology contributed 55.68 million yuan to investment income, enhancing overall performance [2]. Group 3: Strategic Opportunities - The company is actively positioning itself in the integrated circuit sector, capitalizing on the demand for advanced packaging materials driven by AI and the advancement of process technologies [3]. - The EMC epoxy encapsulant is transitioning from mid-to-low-end applications to high-margin advanced packaging, with new high-performance GMC and LMC products under development [3]. - The OLED market continues to grow, and the company is leveraging its strengths in liquid crystal materials to strategically position itself for future opportunities [3]. - The development of new types of optical fibers, such as hollow-core fibers, is creating new demand for fiber coating materials, where the company holds a leading position [3]. Group 4: Profit Forecast and Valuation - The company has adjusted its revenue growth forecast upward, leading to an increase in net profit estimates for 2025-2027 to 374 million, 394 million, and 437 million yuan, respectively [4]. - The earnings per share (EPS) estimates have been revised to 0.66, 0.70, and 0.77 yuan for 2025-2027 [4]. - Based on comparable company valuations, a target price of 24.42 yuan has been set for 2025, reflecting a 37x price-to-earnings ratio, with a maintained "buy" rating [4].