SHIHUA(SH:688093) Xin Lang Cai Jing·2025-12-23 12:14Core Viewpoint - Suzhou Shihua New Materials Technology Co., Ltd. is a national-level specialized and innovative small giant enterprise engaged in the research, production, and sales of functional materials, with a focus on customized solutions for various industries including consumer electronics and new energy vehicles [1][14]. Company Overview - Established in 2010 and listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board in 2020, the company specializes in high-performance optical materials, functional electronic materials, and functional adhesives [1][14]. - The company has developed strong partnerships with major consumer electronics brands such as Apple and Samsung, establishing long-term stable relationships within the supply chain [1][14]. Development Stages - The company's development can be divided into three stages: 1. Initial Stage (2010-2015): Focused on producing process application materials for functional devices and established partnerships with leading clients [2][15]. 2. Business Expansion Stage (2016-2020): Expanded product offerings, including materials for TFT-LCD and OLED modules, successfully entering Samsung's material resource pool [2][15]. 3. Stable Development Stage (2021-Present): Achieved production capacity expansion and received multiple national recognitions, including "specialized and innovative small giant" [2][15]. Financial Performance - The company's total revenue has shown consistent growth, increasing from 241 million yuan in 2019 to 795 million yuan in 2024, with a five-year CAGR of 26.96% [6][20]. - In the first three quarters of 2025, revenue reached 845 million yuan, reflecting a year-on-year growth of 49.23% [6][20]. - Net profit attributable to shareholders also increased from 82 million yuan in 2019 to 280 million yuan in 2024, with a five-year CAGR of 27.84% [6][20]. Profitability Metrics - The company has maintained high gross and net profit margins, with gross margins ranging from 56.21% to 63.31% from 2019 to 2024, and net margins from 33.85% to 43.32% during the same period [7][21]. - The company has effectively controlled its expense ratios, with a decrease in sales and management expense ratios over the years [7][21]. Business Segments - The main business segments include functional electronic materials and high-performance optical materials, with the latter showing explosive growth in 2024 due to strategic development initiatives [10][23]. - The revenue from high-performance optical materials increased significantly, accounting for 27.42% of total revenue in 2024 and further rising to 36.81% in the first half of 2025 [10][23]. Product Structure - The company's functional materials are designed to meet specific functions such as adhesion, conductivity, and insulation, utilizing high polymer functional coatings combined with various substrates [12][26]. - The synthesis of high polymer functional coatings is central to product design, with the company employing advanced polymerization and modification techniques to create materials with tailored properties [12][26].