DING LONG(SZ:300054) Guotou Securities·2025-08-22 11:03Investment Rating - The investment rating for the company is "Buy-A" with a target price of 38.04 CNY, maintaining the rating [5]. Core Views - The company achieved revenue growth of 14% year-on-year in H1 2025, reaching 1.732 billion CNY, and a net profit growth of 42.78%, amounting to 311 million CNY [1][2]. - The strong performance is attributed to the increasing penetration of CMP polishing materials and semiconductor display materials in domestic mainstream wafer and display panel manufacturers, along with the ramp-up of advanced packaging new products [2]. - The company's overall gross margin improved to 49.23%, up by 4.05 percentage points year-on-year, while the net profit margin increased to 21.05%, up by 2.2 percentage points [2]. Financial Performance Summary - In H1 2025, the semiconductor business generated 943 million CNY in revenue, a year-on-year increase of 48.64%, accounting for 54.75% of total revenue [3]. - CMP polishing pads saw revenue of 475 million CNY in H1 2025, up 59.58% year-on-year, with Q2 revenue reaching 256 million CNY, marking a historical high for a single quarter [3]. - The revenue from semiconductor display materials reached 271 million CNY in H1 2025, reflecting a year-on-year growth of 61.90% [4]. - The company expects revenues of 3.962 billion CNY, 4.703 billion CNY, and 5.479 billion CNY for 2025, 2026, and 2027 respectively, with net profits projected at 705 million CNY, 932 million CNY, and 1.141 billion CNY for the same years [10][11].