Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [20]. Core Insights - The company's revenue for Q1 2025 was 3.624 billion yuan, a year-on-year decrease of 31.89% and a quarter-on-quarter decrease of 8.78%. The net profit attributable to the parent company was 401 million yuan, down 23.08% year-on-year but up 709.79% quarter-on-quarter. The gross margin was 13.10%, a decrease of 2.18 percentage points year-on-year but an increase of 1.48 percentage points quarter-on-quarter [1]. - The company maintains a leading position in the film business, with a market share exceeding 50% in Q1 2025. The gross margin for this segment reached 13.1%, showing a recovery in profitability due to increased demand and price adjustments [7]. - The electronic materials business is expected to see growth, with significant shipments of photosensitive dry film and other products. The company has established relationships with major players in the electronic circuit field, indicating a positive outlook for this segment [7]. - The company has effectively managed credit risks, with a total of 136 million yuan in credit impairment provisions being reversed, contributing positively to the financial performance [7]. Financial Projections - The company is projected to achieve total revenue of 21.297 billion yuan in 2025, with a year-on-year growth rate of 11.2%. The net profit attributable to the parent company is expected to reach 1.680 billion yuan, reflecting a growth rate of 28.5% [3]. - Earnings per share (EPS) are forecasted to increase from 0.50 yuan in 2024 to 0.64 yuan in 2025, with a price-to-earnings (P/E) ratio of 19 times for 2025 [3]. - The target price for the company's stock is set at 16.10 yuan, based on a P/E ratio of 25 times for 2025, compared to the current price of 12.29 yuan [3].

Core Insights - The company reported a revenue of 5.687 billion yuan for 2024, representing a year-on-year growth of 7.7%, and a net profit attributable to shareholders of 426 million yuan, corresponding to an earnings per share of 1.86 yuan, which is a 17.6% increase year-on-year, in line with expectations [1] - The growth in net profit is primarily driven by an increase in sales of anti-aging additives and improved capacity utilization, leading to a rise in gross margin [1] - The company plans to invest up to 300 million USD in building a research and production base in Malaysia to enhance its global competitiveness and better serve international customers [2] Financial Performance - The company achieved a non-deductible net profit of 411 million yuan in 2024, a year-on-year increase of 20%, with a net cash flow from operating activities of 464 million yuan, up 169% [1] - In Q4 2024, the company recorded revenue of 1.42 billion yuan, remaining flat year-on-year, with a net profit of 112 million yuan, reflecting a quarter-on-quarter increase of 41.3% [1] - The gross margin in Q4 2024 improved by 1 percentage point to 21.6% due to enhanced gross margin and reduced taxes [1] Product Performance - Revenue changes for various products in 2024 include: anti-oxidants (+8%), light stabilizers (+11.3%), U-pack (-3.8%), and lubricant additives (+15.4%), with corresponding gross margin changes [1] - Sales volume for anti-aging additives and lubricant additives increased by 6.4% and 23.2%, reaching 124,000 tons and 58,000 tons, respectively [1] Strategic Initiatives - The company is actively expanding its overseas bases to enhance global competitiveness and has established a life sciences division to foster new growth avenues [2] - The acquisition of a South Korean company in 2023 positions the company in the high-end electronic-grade PI materials sector, with successful mass production of flexible display materials and advanced semiconductor packaging materials [2] Profit Forecast and Valuation - The profit forecast for 2025 remains at 550 million yuan, with a new forecast of 650 million yuan for 2026, translating to a price-to-earnings ratio of 11.5 times for 2025 and 9.8 times for 2026 [3] - The target price is maintained at 31.7 yuan, corresponding to a 13.2 times P/E ratio for 2025 and an upside potential of 14.4% [3]