Core Viewpoint - The announcement by Jiu Ri New Materials indicates the successful approval and commencement of trial production for the 784 photoinitiator, which is expected to enhance the company's product offerings and competitive position in the PCB industry [1] Group 1: Company Developments - Jiu Ri New Materials has initiated trial production of the 784 photoinitiator at its wholly-owned subsidiary, Shandong Jiu Ri Chemical Technology Co., Ltd. [1] - The project aims to produce 40 tons per year of the 784 photoinitiator, which is characterized by its long wavelength absorption and effective photobleaching properties [1] - The 784 photoinitiator is designed for UV curing products with color requirements and emerging optical materials, ensuring complete curing of PCB photoresists and forming a dense, chemically resistant cross-linked network [1] Group 2: Strategic Implications - The introduction of the 784 photoinitiator is expected to optimize the company's industrial layout and product structure, particularly enriching the variety of photoinitiators for PCB photoresists [1] - This development is anticipated to enhance the company's profitability and overall competitiveness, strengthening its influence in the PCB industry [1] - The strategic significance of this project lies in consolidating the company's industry position and achieving sustainable development goals [1]

Group 1 - The stock of Jiuri New Materials (688199.SH) closed at 27.23 yuan, with a decline of 6.59%, resulting in a total market capitalization of 4.39 billion yuan [1] - Jiuri New Materials was listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board on November 5, 2019, with an issuance of 27.81 million shares, accounting for 25% of the total share capital post-issuance, at an initial price of 66.68 yuan per share [1] - The company raised a total of 1.85 billion yuan from the issuance, with a net amount of 1.71 billion yuan, exceeding the original plan by 113.87 million yuan [1] Group 2 - The total issuance costs for Jiuri New Materials amounted to 144.86 million yuan, with underwriting and sponsorship fees totaling 127.57 million yuan [2] - According to the 2023 annual equity distribution announcement, the company will distribute profits by increasing capital reserves, with a distribution of 4.9 shares for every 10 shares held, without cash dividends or bonus shares [2] - The record date for the equity distribution is June 18, 2024, and the ex-rights (ex-dividend) date is June 19, 2024 [2]

Investment Rating - The report assigns an "Accumulate" rating for the basic chemical industry [2][11]. Core Insights - The price of photoinitiators is gradually increasing, benefiting companies like Jiu Ri New Materials due to rising product prices [4][6]. - The market demand for photoinitiators is expected to grow as their application scenarios become more widespread, driven by environmental requirements and emerging fields like 3D printing [6]. - Domestic photoinitiator companies are showing significant competitive advantages, with increasing industry concentration as leading firms excel in production management, scale, product quality, and R&D capabilities [6]. Summary by Sections Market Demand and Applications - The demand for photoinitiators is expanding continuously, with applications in traditional solvent-based coatings, inks, and adhesives being replaced by photopolymer materials [6]. - Key photoinitiator products include 907, 184, TPO, and 1173, which are used in various industries such as PCB inks, adhesives, and coatings for furniture and electronics [6]. Leading Companies - Jiu Ri New Materials has a scalable production capacity for multiple photoinitiators and offers one-stop raw material supply to downstream customers [6]. - Yangfan New Materials is a major global supplier of photoinitiators and thiol compounds, focusing on applications in pharmaceuticals, pesticides, and dyes [6]. - Qiangli New Materials specializes in electronic materials and green photopolymer materials, including photoinitiators and active diluents [6]. Industry Trends - The report highlights that the photoinitiator market is poised for rapid growth due to increasing environmental standards and technological advancements [6]. - The concentration of the industry is expected to rise further as domestic chemical companies adapt to stricter environmental regulations and the high-end development of downstream applications [6].

Company Overview - The company specializes in the research, production, and sales of aromatic ketone products, including core raw materials for specialty engineering plastics, photoinitiators, and cosmetic raw materials [2] - The company has established stable partnerships with major global manufacturers in the PEEK (Polyether Ether Ketone) industry, such as VICTREX, SYENSQO, and EVONIK [11] Industry Situation Specialty Engineering Plastics - PEEK - PEEK is a high-performance thermoplastic with excellent properties such as high heat resistance, radiation resistance, and chemical stability, making it a popular choice in various industries [4] - The demand for PEEK in China is expected to grow significantly, with production projected to reach approximately 3,809 tons and demand around 3,894 tons by 2024, reflecting a rapid expansion trend [5] - The global PEEK market is forecasted to reach 6.1 billion yuan by 2024 and 8.54 billion yuan by 2027, with a compound annual growth rate (CAGR) of 13.7% in the Chinese market from 2022 to 2027 [5][6] Photoinitiators - Photoinitiators are essential components in photopolymerization processes, which are increasingly replacing traditional solvent-based materials due to their efficiency and environmental benefits [11] - The market for UV coatings, inks, and adhesives in China is projected to grow, with the UV ink market being the largest application area, driven by the PCB industry [12] Cosmetic Raw Materials - The market for cosmetic preservatives is expected to reach 1.4 billion USD by 2024, with a growing demand for new, safer preservatives due to regulatory changes and consumer preferences [16] - The company's HAP and HDO products are recognized for their multifunctional properties, including antioxidant and antimicrobial effects, making them suitable alternatives to traditional preservatives [15][19] Key Performance Drivers - The company benefits from supportive national policies and technological advancements in the fine chemical industry, which are crucial for sustainable development [20][22] - The increasing demand for high-performance materials in various sectors, including aerospace, automotive, and healthcare, is driving the growth of the PEEK market [20][21] - The company's established reputation and partnerships with high-end clients in specialty engineering plastics, photoinitiators, and cosmetic raw materials enhance its competitive position [22]