Changzhou Fusion New Material (SH:688503) Xin Lang Cai Jing·2025-09-04 06:38Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, with a notable drop in profitability metrics, indicating challenges in the current market environment [1] Financial Performance - In H1 2025, the company achieved revenue of 6.435 billion yuan, a year-on-year decrease of 4.87% - The net profit attributable to shareholders was 181 million yuan, down 39.58% year-on-year - The gross margin was 6.89%, a decrease of 4.01 percentage points year-on-year - The net profit margin was 2.81%, down 1.61 percentage points year-on-year [1] - In Q2 2025, the company reported revenue of 3.441 billion yuan, a year-on-year decrease of 9.72% but a quarter-on-quarter increase of 14.94% - The net profit attributable to shareholders was 91 million yuan, down 59.22% year-on-year but up 1.51% quarter-on-quarter - The gross margin was 7.38%, a decrease of 5.58 percentage points year-on-year but an increase of 1.05 percentage points quarter-on-quarter - The net profit margin was 2.64%, down 3.21 percentage points year-on-year and down 0.35 percentage points quarter-on-quarter [1] Industry Position and Product Development - In H1 2025, the company shipped over 930 tons of photovoltaic silver paste, with N-type silver paste accounting for 96% of the total - In Q2 2025, silver paste shipments approached 490 tons, reflecting an 11% quarter-on-quarter increase - The company maintained its market share and improved shipment volume due to increased operating rates in the downstream photovoltaic cell segment [2] - The company has successfully developed and shipped small quantities of copper paste products, with ongoing efforts in production equipment development and market education - The second generation of copper paste products is expected to launch in Q3 2025 [2] - The company is expanding its upstream supply chain to ensure stable raw material supply and reduce costs, focusing on the production of metal and inorganic powders [3] Investment Outlook - The company maintains a leading market share and a solid position as a paste leader, with new products expected to drive technological advancements - Profit forecasts have been adjusted, with expected net profits for 2025-2027 at 410 million, 527 million, and 642 million yuan respectively - The current market capitalization corresponds to price-to-earnings ratios of 33, 26, and 21 times for the respective years - A target price of 65.30 yuan is set based on a 30x PE for 2026, maintaining a "recommended" rating [4]