Valiant(SZ:002643) Western Securities·2025-08-29 06:41Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company's performance improved in the first half of 2025, with a year-on-year increase in net profit despite a slight decline in revenue. The second quarter showed a significant recovery in profitability [2][4]. - The company is actively expanding its production capacity in new materials, particularly in semiconductor manufacturing materials, which is expected to drive future growth [3][4]. Financial Performance Summary - In the first half of 2025, the company achieved revenue of 1.87 billion, a year-on-year decrease of 4.42%, while net profit attributable to shareholders was 218 million, an increase of 1.35% [2][6]. - For Q2 2025, revenue was 1.01 billion, with a year-on-year increase of 17.12%, and net profit was 138 million, reflecting a significant quarter-on-quarter growth of 73.13% [2][6]. - The gross margin for Q2 2025 was 39.77%, showing an improvement compared to previous periods, while the net margin reached 16.02% [2][3]. Business Segment Performance - The functional materials segment generated revenue of 1.47 billion, down 9.55% year-on-year, while the life sciences and pharmaceutical products segment saw a revenue increase of 20.80% to 376 million [2][3]. - The company is focusing on high-performance polymer products, with PEEK materials already in trial production and ongoing market promotion [3]. Future Outlook - The company expects to achieve net profits of 434 million, 519 million, and 581 million for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 29.23, 24.44, and 21.80 [4][10]. - The ongoing construction of the new materials project is 55% complete, with plans to add 7,900 tons/year of functional materials capacity, which is anticipated to start production within the year [3][4].