Investment Rating - The report does not explicitly state the investment rating for Lily Group Core Insights - Lily Group is a leader in high-performance organic pigments with a comprehensive range of products and color schemes, established in 1995. The company produces high-performance heterocyclic and azo pigments, traditional azo pigments, organic pigment intermediates, and pearl pigments. Its high-performance organic pigments include various specialized types, and the downstream applications primarily include inks (40%), coatings (28%), and plastics (27). The company has over 50 production lines and produces more than 200 types of pigments, capturing approximately 10% of the global market share with a production capacity of over 40,000 tonnes [1][2][3] Horizontal Integration - The company is expected to increase the proportion of high-performance organic pigment products through horizontal integration. These pigments are primarily used in premium inks, automotive paints, and children's toy plastics, with a current high dependency on imports in China. The company has made technological breakthroughs in various application fields, including automotive coatings and food packaging, and has validated high-performance pigments for electronic chemicals with downstream customers [3] Vertical Integration - Lily Group has a complete self-matching product chain through vertical integration. It produces key intermediates required for organic pigment production using basic chemical raw materials. The company has invested in Inner Mongolia New Materials and acquired a controlling interest in Yuansheng Sodium to secure the supply of essential raw materials. A planned investment of 1 billion yuan in a new industrialization project for high-performance organic pigments is expected to generate an annual output value of approximately 1.7 billion yuan once production capacity is reached [3] Dual Business Focus - The company operates in two main areas: "chemical materials" and "new energy materials." It has established a research institute for new energy materials and formed a core team with extensive technical expertise. The production processes for pigment manufacturing and new energy materials share strong similarities, and the company has developed core technologies for new energy materials such as lithium carbonate and Prussian blue [3]