Yunlu Materials(SH:688190) NORTHEAST SECURITIES·2025-09-01 06:47Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][5]. Core Insights - The company, Yunlu Co., is the largest supplier of amorphous alloy strips in the industry, focusing on the design, research and development, production, and sales of advanced magnetic metal materials [2]. - In the first half of 2025, the company achieved operating revenue of 986 million yuan, an increase of 8.28% year-on-year, and a net profit attributable to shareholders of 169 million yuan, up 1.51% year-on-year [1][2]. - The production capacity of amorphous strip materials is expected to reach 125,000 tons in 2025, maintaining a global leading position [2]. - The efficiency of amorphous motors can reach up to 98.5%, significantly enhancing performance while reducing energy loss [2]. Financial Summary - The projected operating revenues for 2025, 2026, and 2027 are 2.28 billion yuan, 3.08 billion yuan, and 4.31 billion yuan, respectively, with net profits of 430 million yuan, 597 million yuan, and 836 million yuan [3][4]. - The company has seen a reduction in sales and management expenses, with sales expenses at 18.02 million yuan (1.83% of revenue) and management expenses at 20.67 million yuan [3]. - The earnings per share (EPS) for 2025 is projected at 3.58 yuan, with a price-to-earnings (P/E) ratio of 30.26 [4].