KINGLAI MATERIALS(SZ:300260) Soochow Securities·2025-08-27 15:07Investment Rating - The report maintains a rating of "Accumulate" for the company [1] Core Views - The company is expected to benefit from dual growth in the semiconductor and liquid cooling sectors, with a projected revenue increase from 2,711 million RMB in 2023 to 3,989 million RMB by 2027, reflecting a compound annual growth rate (CAGR) of 16.57% [1] - The net profit attributable to the parent company is forecasted to recover from 226.34 million RMB in 2024 to 414.73 million RMB in 2027, indicating a significant growth trajectory [1] - The company has made strides in optimizing its customer structure and enhancing its product offerings in the semiconductor sector, which is expected to drive future growth [8] Financial Performance Summary - For the first half of 2025, the company reported a revenue of 1.409 billion RMB, a slight decrease of 0.6% year-on-year, with the food business showing a 5.4% increase in revenue [8] - The gross margin for the first half of 2025 was 24.5%, down 1.1 percentage points year-on-year, while the net profit margin was 7.6%, down 2.3 percentage points year-on-year [8] - The company has improved its operating cash flow, achieving a net cash flow from operating activities of 130 million RMB, a year-on-year increase of 41.8% [8] Market Position and Strategy - The company is actively pursuing opportunities in the liquid cooling market, focusing on key components such as CDU and fluid pipelines, which are essential for AI infrastructure [8] - The company has established itself as a primary supplier for major semiconductor equipment manufacturers, enhancing its competitive position in the market [8] - The report highlights the company's commitment to increasing R&D investment to develop high-value products, which is expected to strengthen its market position further [8]