Investment Rating - The report maintains a "Buy" rating for the company [2][7] Core Insights - The company is expected to achieve a significant increase in net profit for the first half of 2025, with estimates ranging from 0.98 to 1.11 billion yuan, representing a year-on-year growth of 183% to 220% [5][6] - The growth in revenue and improvement in gross margin are the main drivers behind the company's strong performance [6] - The company aims for a revenue target of 2.6 billion yuan for 2025, which is a 34% year-on-year increase, and anticipates exceeding its annual profit target of 140 million yuan [6][7] - The demand for nitrocellulose is increasing while supply is contracting, leading to a rise in both export volume and price [6][7] - The company is positioned to benefit from the growing global demand for military-grade nitrocellulose and the potential market for environmentally friendly fireworks [7][8] Financial Performance and Projections - The company reported a net profit of 0.30 billion yuan in Q1 2025, with Q2 expected to show a significant increase to between 0.68 and 0.81 billion yuan [6] - The financial forecast for 2025-2027 includes projected revenues of 2.66 billion, 3.27 billion, and 3.95 billion yuan, with net profits of 186 million, 320 million, and 451 million yuan respectively [10][11] - The current price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are projected to be 43, 25, and 18 times respectively [7][10]