Core Viewpoint - Zhongjian Technology (300777) announced on October 30 that it has established a new materials subsidiary to advance its mid-to-high-end civil prepreg business, which faced delays due to funding issues from individual shareholders [1] Group 1: Business Development - The company has set up a subsidiary named Changhong Functional Materials to seize development opportunities this year [1] - A complete production line has been established, and several products have already been produced [1] - Initial communication with key users indicates that the product performance meets expectations [1] Group 2: Future Plans - The company has sufficient preparation and technical reserves to expand the production line based on successful experiences and future market conditions [1] - Future expansion will also depend on communication results with users [1]

Core Viewpoint - 隆华科技 reported strong revenue growth in H1 2025, with a revenue of 1.515 billion yuan, representing a year-over-year increase of 23.95% and a net profit of 112 million yuan, up 5.83% year-over-year [1] Group 1: Financial Performance - In Q2 2025, the company achieved revenue of 876 million yuan, marking a year-over-year increase of 50.95% and a quarter-over-quarter increase of 37.16% [1] - The company's material business saw significant gross margin improvement, contributing to the overall positive revenue growth [2] - The revenue from traditional energy-saving products, target materials, ultra-high temperature special functional materials, water treatment systems, foam products, and extraction agents accounted for 35.87%, 26.91%, 13.49%, 9.44%, and 8.76% of total revenue, respectively [2] Group 2: Business Expansion - The company is expanding its electronic materials business beyond traditional display fields into areas such as foldable screens and various battery technologies [3] - The company is actively developing high-performance furnace components for high-temperature vacuum furnaces, targeting markets in aerospace, naval vessels, vehicles, radar communication, medical devices, and more [3] - The company’s subsidiary, Sanuo New Materials, achieved revenue of 133 million yuan in H1 2025, growing 6.22% year-over-year, focusing on rare earth separation and lithium extraction [3] Group 3: Profit Forecast and Valuation - The company maintains profit forecasts for 2025-2027 at 232 million, 258 million, and 310 million yuan, respectively, with corresponding EPS of 0.26, 0.29, and 0.34 yuan [4] - The estimated PE ratios for comparable companies in 2025 are 30.2x and 30.6x, with a valuation premium applied to the new materials segment due to its broad application potential [4] - The target price for the company is set at 10.49 yuan, reflecting an increase from the previous value of 8.92 yuan [4]