First(SH:603806) Xin Lang Cai Jing·2025-12-27 00:31Core Viewpoint - The company is a leading player in the photovoltaic film sector, maintaining a stable market share of around 50% over the past two years while strengthening its advantages during market consolidation [1] Group 1: Photovoltaic Film Business - The company holds a global leading market share in photovoltaic films and is actively expanding production capacity overseas, particularly in Thailand, to meet growing international demand [1] - The company continues to achieve industry-leading gross margins and profitability in its photovoltaic film business, significantly outperforming most peers, with many competitors facing negative or very low gross margins in the first half of 2025 [1] - The overall industry is characterized by a "one strong, many weak" dynamic, with the company maintaining good profitability despite the challenges faced by others [1] Group 2: Electronic Materials Business - The company is developing its electronic materials segment, with the photoresist dry film business expected to experience rapid growth, targeting a design capacity of 300 million square meters by 2025 [1] - The total capacity will reach 500 million square meters after the launch of a 200 million square meter project in Jiangmen in 2026, with the potential to produce high-end dry films priced above 30 yuan per square meter [1] - The recovery in consumer electronics demand and the acceleration of AI applications are expected to usher in a new growth cycle for the PCB industry, particularly in AI servers and automotive intelligence, presenting significant opportunities for the company's electronic materials business [1] Group 3: Functional Films and Global Supply Capacity - The company's functional film division, primarily focused on aluminum-plastic films, is entering a growth phase as customer validation is completed [2] - The shift towards semi-solid and solid-state batteries in lithium battery technology, led by domestic companies like CATL, is expected to create new market opportunities for the company's aluminum-plastic film business [2] - The company has established a scalable overseas production capacity, particularly in Southeast Asia, to meet the growing demand in international markets, with overseas sales accounting for over 20% of total revenue in the first half of 2025 [2] Group 4: Profit Forecast and Valuation - The company is recognized as the global leader in photovoltaic films, with a multi-product layout and strong cost control capabilities, achieving profitability while many competitors are incurring losses [3] - The company is executing a "platform-type new materials" strategy, with both the photoresist dry film and aluminum-plastic film businesses poised for growth, enhancing its ability to navigate through market cycles [3] - Projected net profits for the company are estimated at 1.024 billion yuan, 1.827 billion yuan, and 2.414 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding price-to-earnings ratios of 36, 20, and 15 times [3]