Investment Rating - The report initiates coverage with a "Buy" rating for the company, which is the largest and most comprehensive manufacturer of photoinitiators in China, actively advancing its semiconductor materials layout to create a second growth curve [3]. Core Viewpoints - The company has a leading position in the photoinitiator industry, with a market share of approximately 30%. It has been focusing on the photopolymerization industry for over 20 years and is expanding into semiconductor chemical materials [19]. - The company's revenue and operating performance are closely tied to the cyclical nature of the photopolymer materials market, with expectations for recovery as the industry improves [23]. - The company has strong R&D capabilities and is actively developing a full industrial chain from raw materials to downstream photolithography products, enhancing its diversified growth strategy [4][22]. Financial Summary - Revenue is projected to grow from 1,235 million yuan in 2023 to 2,090 million yuan in 2027, with a compound annual growth rate (CAGR) of approximately 13.13% [2]. - The net profit attributable to the parent company is expected to turn from a loss of 96 million yuan in 2023 to a profit of 197 million yuan in 2027, indicating a significant recovery [2]. - Earnings per share (EPS) is forecasted to improve from -0.89 yuan in 2023 to 1.22 yuan in 2027, reflecting a positive trend in profitability [2]. Industry Overview - The photoinitiator market is expected to benefit from the growing demand for UV coatings and inks, driven by environmental policies and the increasing penetration of UV technology in various applications [5][64]. - The domestic UV coating production has grown from 68,200 tons in 2015 to 194,200 tons in 2023, with a CAGR of 14%, indicating substantial growth potential in the market [5]. - The company is well-positioned to capitalize on the recovery of the PCB industry, with the market value of domestic UV inks increasing from 3.291 billion yuan in 2018 to 5.537 billion yuan in 2023, achieving a CAGR of 11% [5]. R&D and Product Development - The company has developed over ten types of photoinitiators, including 184, TPO, and 1173, and has a production capacity of 22,850 tons, making it the largest manufacturer in the country [6][21]. - The company is also advancing its semiconductor materials layout, with projects in photolithography and core raw materials expected to enter trial production in 2024 [22]. Management and Governance - The company has a stable ownership structure, with significant shareholding by executives, reflecting confidence in long-term development [47].

Investment Rating - The report assigns a "Recommended" rating to the photoinitiator industry, marking its first coverage [2]. Core Viewpoints - The supply-demand dynamics in the photoinitiator industry are improving, leading to a potential recovery in industry profitability [3][10]. - The demand side is witnessing a revival in traditional sectors, while emerging applications are opening new opportunities [6][10]. - The industry is expected to see a concentration of production capacity among companies with scale, cost, and technological advantages [9][10]. Summary by Sections Supply and Demand Dynamics - The prices of various photoinitiator products have increased significantly in 2025, with notable price changes: - Photoinitiator 907: 88 CNY/kg (+27.54% since the beginning of the year) - Photoinitiator 184: 45 CNY/kg (+32.35%) - Photoinitiator TPO: 83 CNY/kg (+10.67%) - Photoinitiator ITX: 155 CNY/kg (+16.54%) [5]. - The photoinitiator market in China is projected to grow, with the UV coating market reaching 6.2 billion CNY in 2023 (+8% YoY), UV ink at 5.5 billion CNY (+11% YoY), and UV adhesive at 2.6 billion CNY (+238% YoY) [6][7]. Demand Drivers - The demand for photoinitiators is expected to rise due to recovery in the real estate sector and growth in downstream applications such as UV inks and adhesives used in electronics and packaging [7][10]. - The global 3D printing industry is projected to grow from 20 billion USD in 2023 to 21.9 billion USD in 2024 (+9.1%), with a compound annual growth rate (CAGR) of 18% expected from 2024 to 2034 [7]. - The PCB market is also on an upward trend, with a projected value of 73.6 billion USD in 2024 (+5.8% YoY) and an expected market size of 94.7 billion USD by 2029 [8]. Supply Side and Industry Structure - The production capacity of leading photoinitiator companies in China for 2024 is as follows: - Jiu Ri New Materials: 23,000 tons - Qiang Li New Materials: 17,000 tons - Wo Kai Long: 13,000 tons [9]. - The industry is experiencing a consolidation trend, with production capacity increasingly concentrated among companies with competitive advantages [9][10]. Investment Strategy - The report suggests that the photoinitiator industry is poised for a rebound in profitability as supply-demand conditions improve, and it highlights the potential for price recovery [10]. - Key companies to watch include Jiu Ri New Materials, Qiang Li New Materials, Yang Fan New Materials, and Xin Han New Materials [11].

Investment Rating - The report maintains a "Positive" investment rating for the chemical industry [8] Core Insights - The light initiator industry is experiencing frequent supply disruptions, with significant events such as a fire at Jiangxi Yangfan's subsidiary leading to production halts, and Ningxia Wokailong facing operational difficulties. Despite these challenges, the industry's high concentration and growing demand suggest a potential recovery in market conditions, making it a point of interest for investment opportunities [2][7] Summary by Sections Industry Overview - The light initiator industry is crucial for light-curing materials, which include UV coatings, inks, adhesives, and composites. The market has seen stable growth, with the output value increasing from 3.11 billion in 2018 to 4.59 billion in 2023, reflecting a CAGR of 8.1% [10] Supply Disruptions - Recent supply disruptions include a fire incident at Jiangxi Yangfan and operational challenges faced by Ningxia Wokailong, which has been listed as a dishonest executor due to unfulfilled obligations. These events are expected to improve the supply-demand balance in the industry [7][10] Market Dynamics - Historical price elasticity in the light initiator market indicates significant upward potential, especially as the current market conditions are at a low point. The report notes that in 2017, prices surged due to high demand and limited supply, with notable increases in various product prices [10] Investment Opportunities - The report suggests focusing on key players like Jiu Ri New Materials, which holds a leading position in the market with a projected production of 19,851 tons in 2024, capturing approximately 34% of the domestic market share. The company is expected to increase its sales by 20.2% year-on-year, indicating a strong competitive advantage [10]

Group 1: Macro Economic Insights - The domestic macroeconomic policy emphasizes scientific, democratic, and legal decision-making for the "14th Five-Year Plan" [3] - Recent policies focus on accelerating the development of the technology service industry and digital transformation in electronic information manufacturing [3][4] - The central bank aims to implement a moderately loose monetary policy to support effective financing needs of the real economy [3] Group 2: Industry Trends - The beauty and personal care sector is experiencing a rise in interest, particularly in oral beauty products and the "scent economy" [25][27] - The global潮牌 (trendy brand) market is projected to exceed 1 trillion yuan, with significant growth in the Chinese market expected [26] - The light curing agent market is expected to improve, with a projected growth in demand due to tightening environmental policies and advancements in light curing technology [30][33] Group 3: Market Performance - The social service sector outperformed the broader market, with a notable increase in domestic travel during the Dragon Boat Festival [28] - The A-share market showed a mixed performance, with the Shanghai Composite Index and the Shenzhen Component Index experiencing slight declines [7] - The bond market is currently in a low volatility phase, with a notable decrease in trading volumes [13][17] Group 4: Investment Recommendations - Recommended stocks in the tourism sector include Changbai Mountain and in the education sector include Good Future and Kede Education [28] - The light curing agent industry is suggested as a potential investment opportunity, with key players like Jiu Ri New Material and Qiangli New Material highlighted [33]

Core Viewpoint - The company is optimistic about the future of the radiation curing industry, driven by technological advancements, policy support, and market expansion opportunities [3][4]. Industry Outlook - Technological advancements in radiation curing, particularly in light curing technology, are expected to drive industry innovation, offering efficiency, cost-effectiveness, and environmental benefits [3]. - The market share of light curing technology in inks and coatings remains low, indicating significant future growth potential [3]. - National policies are supporting the upgrade of the industry by including high-end light initiators and new light curing materials in relevant guidance directories [3]. - The application of light initiators is expanding from traditional printing to high-tech industries such as optoelectronics, information and communication, and 3D printing [3]. Market Competition - The radiation curing industry is experiencing increased production capacity, leading to fierce competition and a supply-demand imbalance, particularly in 2024 [4]. - Major competitors in the light initiator sector include the company, IGM, Jiu Ri New Materials, Qiangli New Materials, and Gurin Technology, with expectations for increased industry concentration [4]. - The company maintains a stable market share due to its comprehensive product series and advanced production technology, despite short-term competition in the dye industry [4]. Company Strategies - The company is optimizing its organizational structure and governance to enhance operational efficiency and integrate its resources effectively [5]. - It is implementing an incentive mechanism linking employee income to production base revenue and profits, aiming to improve profitability [5]. - The company is adjusting its production lines to focus on high-demand products and increasing R&D investment in new products and technologies [5][6]. - It plans to enhance brand recognition and expand into overseas markets to increase its international presence [7]. Financial Performance - In Q1 2025, the company reported a main revenue of 232 million yuan, a year-on-year increase of 74.6%, and a net profit attributable to shareholders of 10.05 million yuan, up 174.81% [9]. - The company's gross profit margin stands at 17.96%, with a debt ratio of 46.42% [9].

Group 1: Industry Outlook - The radiation curing industry is experiencing technological advancements that enhance efficiency, cost-effectiveness, and environmental friendliness, with significant potential for growth in the UV LED light source market [2][3] - National policies are supporting industry upgrades by including high-end photoinitiators and new photopolymer materials in relevant guidance directories, which is expected to drive continuous transformation [3] - The application of photoinitiators is expanding from traditional printing to high-tech industries such as optoelectronics, information and communication, and 3D printing [3] Group 2: Market Competition - The photoinitiator market is currently facing oversupply and intense competition, with the overall market expected to be in a cyclical low in 2024, leading to a gradual balance between supply and demand for certain products [4] - Major competitors in the radiation curing industry include the company, IGM, Jiu Ri New Materials, Qiangli New Materials, and Gurin Technology, with an anticipated increase in industry concentration [4] - The company maintains a stable market share due to advanced production technology and high environmental standards, despite short-term disruptions in the pharmaceutical, pesticide, and dye industries [4] Group 3: Company Strategies - The company is optimizing its organizational structure to enhance governance and integrate resources across seven functional centers, aiming to create a capable team [5] - An incentive mechanism is being implemented to link employee income with revenue and profit from production bases, promoting efficiency and project management [5] - The company is adjusting production lines and focusing on new product development to capture advantageous market segments [5][6] Group 4: Research and Development - The company has invested in R&D, with expenses of 37.6 million, 40.8 million, and 40.4 million over the past three years, maintaining around 5% of revenue [6] - Future R&D efforts will focus on phosphorus-containing flame retardants, new photopolymer products, and pesticide intermediates, with plans to increase production capacity in 2025 [6] Group 5: International Market Expansion - The company's export revenue has been less than 20% of total revenue, with a slight increase expected in 2024 due to global economic conditions [6][7] - The company is actively expanding its overseas market presence through participation in international trade shows and strengthening relationships with distributors and end-users [7] Group 6: Future Development Goals - The company aims to solidify its market position while actively developing in the phosphorus fine chemicals sector, with a strategic goal of becoming a leading supplier of sulfur-phosphorus chemical new materials [7] - The 2025 operational plan includes enhancing strategic decision-making capabilities and focusing on key technological breakthroughs and resource integration [7]