SQM(SH:688138) Guotou Securities·2025-08-26 08:17Investment Rating - The investment rating for the company is "Buy-A" with a target price of 40.61 CNY per share, maintaining the rating [6][9]. Core Views - The company reported a steady revenue growth of 10.9% year-on-year for H1 2025, achieving a revenue of 622 million CNY and a net profit of 92 million CNY, which is a 3.52% increase year-on-year [1][2]. - Financial expenses significantly increased due to exchange losses and rising interest expenses, impacting the net profit growth [2]. - The company is enhancing its production capacity in the flat panel display sector, with a focus on AMOLED and HTM technologies, and plans to commence trial production at its Foshan facility in H2 2025 [3]. - In the semiconductor sector, the company successfully delivered 180nm products to multiple clients and is advancing towards small-scale production of 150nm products [4]. Financial Performance Summary - For H1 2025, the company achieved a gross margin of 31.04%, with a net profit margin of 14.82%, reflecting a slight decrease of 1.03 percentage points year-on-year [2]. - The projected revenues for 2025-2027 are 1.424 billion CNY, 1.780 billion CNY, and 2.118 billion CNY, respectively, with net profits expected to be 241 million CNY, 330 million CNY, and 419 million CNY [5][10]. - The company’s overall financial metrics indicate a positive growth trajectory, with a net profit growth rate projected at 40.2% for 2025 [11].