Xi'an Manareco(SH:688550) KAIYUAN SECURITIES·2025-08-22 05:44Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 806 million yuan for the first half of 2025, representing a year-on-year increase of 16.3%, and a net profit attributable to shareholders of 166 million yuan, up 74.2% year-on-year. The second quarter alone saw a revenue of 462 million yuan, a year-on-year increase of 26.5% and a quarter-on-quarter increase of 34.4%, with a net profit of 120 million yuan, reflecting a year-on-year increase of 97.5% and a quarter-on-quarter increase of 163.9% [3][4] - The company is expected to benefit from state-owned capital control, which is anticipated to stabilize operations and support long-term development. The company is expanding from OLED precursor materials into downstream terminal materials, and is steadily advancing the capacity expansion of pharmaceutical intermediates and electronic chemicals [3][4] Financial Performance Summary - For the first half of 2025, the company's revenue from display materials, pharmaceutical intermediates, and electronic materials was 629 million yuan, 150 million yuan, and 27 million yuan respectively, showing a year-on-year change of -5.49%, +548.61%, and +431.76% [4] - The gross margin and net margin for the first half of 2025 were 47.01% and 20.6%, respectively, reflecting year-on-year increases of 8.12 and 6.85 percentage points [4] - The company’s earnings per share (EPS) for 2025-2027 are projected to be 1.93 yuan, 2.32 yuan, and 2.65 yuan, with corresponding price-to-earnings (P/E) ratios of 22.9, 19.0, and 16.7 [3][6] Valuation Metrics - The total revenue for 2025 is estimated at 1.707 billion yuan, with a year-on-year growth of 17.0%. The net profit attributable to shareholders is projected to be 335 million yuan, reflecting a year-on-year increase of 33.0% [6][8] - The company’s return on equity (ROE) is expected to improve from 10.3% in 2025 to 11.7% in 2027 [6][8]