PACIFIC QUARTZ(SH:603688) ZHONGTAI SECURITIES·2025-09-02 11:10Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative performance increase of over 15% compared to the benchmark index within the next 6 to 12 months [4][23]. Core Views - The company has shown strong potential in the semiconductor materials sector, with a significant increase in market share anticipated due to domestic substitution trends [7][8]. - The report slightly lowers the profit forecast for 2025-2027, reflecting pressures in the photovoltaic sand market, but maintains a positive outlook on the semiconductor materials business [8][6]. Summary by Sections Financial Performance - In H1 2025, the company achieved revenue of 510 million yuan, a year-on-year decrease of 30.1%, and a net profit attributable to shareholders of 110 million yuan, down 58.4% year-on-year [6]. - For Q2 2025, the company reported revenue of 260 million yuan, a decrease of 24.0% year-on-year, but a slight increase of 2.8% quarter-on-quarter [6]. Semiconductor Materials Outlook - The company is expected to enhance its market share in semiconductor quartz glass materials, having received certifications from major international equipment manufacturers [8]. - The domestic production of semiconductor sand is anticipated to accelerate, with the company already achieving certifications for its self-produced sand from several international semiconductor equipment vendors [8]. Photovoltaic Sector Challenges - The high-purity quartz sand segment faced a revenue drop of 59.20% year-on-year in H1 2025, primarily due to weak demand from the photovoltaic sector [8]. - The report suggests that as inventory depletion in downstream sectors concludes, the actual demand for high-purity quartz sand is expected to gradually recover [8]. Profit Forecast and Valuation - The revised profit forecasts for 2025, 2026, and 2027 are 300 million yuan, 450 million yuan, and 620 million yuan, respectively, reflecting adjustments in sales volume and price assumptions for photovoltaic quartz sand [8]. - The current price-to-earnings (P/E) ratio is projected at 72.1, 48.1, and 34.9 for the years 2025, 2026, and 2027, respectively, while the price-to-book (P/B) ratio is expected to be 3.7, 3.5, and 3.2 [8].