Core Viewpoint - The company is actively focusing on opportunities in the semiconductor industry and plans to raise funds for research and industrialization of semiconductor equipment precision components [1] Group 1 - The company emphasizes the importance of the semiconductor industry's development opportunities [1] - The company intends to issue stocks to specific investors to raise funds for projects related to semiconductor equipment precision components [1] - Current projects are still in the preparatory stage, with further details to be disclosed in relevant announcements [1] Group 2 - The company commits to strictly following project plans to advance research and production efforts [1] - Progress updates will be announced in accordance with information disclosure regulations [1]

Core Viewpoint - The company plans to acquire a total of 12.44% equity in its associate company, Nors Micro, which will enhance its control in the semiconductor sector [1] Group 1: Acquisition Details - The company intends to purchase 5.76% equity from Tianjin Noxinyuan Enterprise Management Consulting Partnership for a price of 69.17 million yuan [1] - Additionally, the company will acquire 6.68% equity from Pang Wei for 80.17 million yuan [1] - The total acquisition will increase the company's stake in Nors Micro from 22.12% to 34.56% [1] Group 2: Strategic Implications - This acquisition is aimed at accelerating the company's expansion in the semiconductor industry [1]

Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of RMB 20.65 [7][8]. Core Insights - The company achieved a revenue of RMB 2.9 billion in 2024, representing a year-over-year increase of 7%, and a net profit of RMB 250 million, which is a significant increase of 119% year-over-year [1][4]. - The company has successfully introduced new products in the semiconductor field and is expected to see growth from ongoing projects [1][3]. - The company reported a net profit of RMB 120 million in Q1 2025, doubling year-over-year, primarily due to investment income of RMB 60 million [3]. Revenue and Profitability - The screen display materials segment generated RMB 1.37 billion in revenue in 2024, up 7% year-over-year, with a gross margin increase of 2 percentage points to 38% [2]. - The semiconductor materials segment saw a revenue increase of 20% to RMB 680 million, with a gross margin of 36% [2]. - The overall gross margin for the company improved by 1 percentage point to 35%, and the net profit margin increased by 4 percentage points to 9% in 2024 [2]. Future Projections - The forecast for net profit is adjusted to RMB 310 million for 2025 and RMB 360 million for 2026, with a projected growth of 27% and 15% respectively [4]. - The company is expected to maintain a steady growth trajectory with an EPS of RMB 0.59 for 2025, increasing to RMB 0.78 by 2027 [4][6]. Market Position and Strategy - The company has successfully integrated into the supply chains of several well-known semiconductor enterprises, enhancing its market competitiveness [2][3]. - The introduction of new products, such as the next-generation photoinitiator TMO, is expected to fill market gaps and drive future revenue growth [3].