Investment Rating - The report maintains a "Buy" rating for the company, with a target price of RMB 24.82, indicating an expectation of outperforming the market by 10%-20% over the next 6-12 months [1]. Core Views - The company is experiencing steady growth in performance, driven by increased sales of OLED terminal materials and improved domestic production rates of OLED materials. The report highlights the positive development opportunities arising from the rising penetration rate of OLED panels in downstream applications [1][5][10]. Financial Performance Summary - For the first half of 2025, the company achieved revenue of RMB 292 million, representing a year-on-year growth of 18.84%. The net profit attributable to the parent company was RMB 126 million, up 36.74% year-on-year. In Q2 2025, revenue reached RMB 147 million, with a year-on-year increase of 11.73% and a quarter-on-quarter increase of 1.37% [5][10][11]. - The company's gross margin for H1 2025 was 74.72%, an increase of 8.52 percentage points year-on-year, while the net margin was 43.34%, up 5.68 percentage points year-on-year [10]. - The profit distribution plan for H1 2025 includes a cash dividend of RMB 1.8 per 10 shares (before tax) [5]. Future Earnings Forecast - The report adjusts the profit forecast for 2025-2027, estimating net profits of RMB 286 million, RMB 438 million, and RMB 612 million, respectively. The corresponding earnings per share (EPS) are projected to be RMB 0.71, RMB 1.09, and RMB 1.52, with price-to-earnings (PE) ratios of 34.9, 22.8, and 16.3 times [7][9][10]. Market Position and Growth Drivers - The report emphasizes the growing penetration of OLED panels in various sectors, including smartphones, IT devices, and automotive displays. The company’s OLED organic materials revenue for H1 2025 was RMB 276 million, reflecting a year-on-year increase of 29.95% [10][11]. - The company is actively expanding its customer base and product offerings, including new products in the OLED materials segment, which are expected to contribute to future revenue growth [10][11].
莱特光电（688150）：业绩稳健增长，OLED终端材料持续发力