Jilin OLED(SH:688378) Changjiang Securities·2025-08-31 10:15Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 280 million yuan for the first half of 2025, a year-on-year decrease of 17.9%, and a net profit attributable to shareholders of 30 million yuan, down 70.6% year-on-year. The second quarter revenue was 130 million yuan, showing a year-on-year increase of 52.4% but a quarter-on-quarter decrease of 16.5% [2][6]. - The decline in revenue is primarily attributed to a reduction in orders for evaporation source equipment, while the materials business saw a revenue increase of 22.0% year-on-year [9]. - The OLED industry is undergoing a critical transition from 6th generation to 8.6th generation production lines, with the company successfully securing contracts for new projects, reinforcing its leading position in the domestic evaporation source equipment market [9]. Summary by Sections Financial Performance - In H1 2025, the company's revenue decreased by 17.9% year-on-year, with a gross margin of 45.8%, down 5.7 percentage points. The Q2 gross margin was 44.3%, reflecting a year-on-year decrease of 1.8 percentage points and a quarter-on-quarter decrease of 2.9 percentage points [9]. - The company’s organic light-emitting materials generated revenue of 340 million yuan in 2024, a year-on-year increase of 7.1%, with a gross margin of 47.7% [9]. Market Position and Developments - The company has made significant progress in both equipment and materials, completing acceptance work for major projects and successfully winning bids for equipment upgrades [9]. - The materials business has shown consistent revenue growth over five years, with new product developments in packaging materials and perovskite materials progressing steadily [9]. Future Outlook - The company is expected to achieve net profits of 180 million yuan, 310 million yuan, and 380 million yuan for the years 2025, 2026, and 2027, respectively [9].