DING LONG(SZ:300054) Changjiang Securities·2025-08-25 09:22Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The semiconductor business of the company is experiencing rapid growth, with new products being steadily advanced [11]. - The company reported a revenue of 1.732 billion yuan in H1 2025, a year-on-year increase of 14%, and a net profit attributable to shareholders of 311 million yuan, a year-on-year increase of 42.78% [2][6]. - The gross profit margin for H1 2025 was 49.23%, an increase of 4.0 percentage points year-on-year [2][6]. Financial Performance - In Q2 2025, the company achieved a revenue of 908 million yuan, a year-on-year increase of 11.94%, and a net profit of 170 million yuan, a year-on-year increase of 24.79% [2][6]. - The gross profit margin for Q2 2025 was 49.61%, an increase of 3.6 percentage points year-on-year [2][6]. Business Segments - The company's semiconductor business, including CMP polishing pads, CMP polishing liquids, and cleaning liquids, generated revenues of 475 million yuan, 119 million yuan, and 271 million yuan respectively in H1 2025, with year-on-year growth rates of 59.58%, 55.22%, and 61.90% [11]. - The traditional business of printing and copying consumables saw a revenue of 779 million yuan, a year-on-year decline of 10.12% [11]. Industry Outlook - The global semiconductor sales reached 175.9 billion USD in Q2 2025, a year-on-year increase of 23.0%, while China's semiconductor sales reached 50.5 billion USD, a year-on-year increase of 15.9% [11]. - The domestic wafer foundry leaders, SMIC and Huahong, have seen their monthly production capacity increase by 18.4% and 14.3% year-on-year respectively [11]. Growth Projections - The company is expected to achieve net profits attributable to shareholders of 714 million yuan, 917 million yuan, and 1.186 billion yuan for the years 2025 to 2027, corresponding to current price-earnings ratios of 43x, 34x, and 26x [11].