Core Viewpoint - Shandong Link Science and Technology Co., Ltd. plans to issue shares to specific investors to raise up to RMB 300 million, which will be used for the second phase of a project to produce 100,000 tons of high-pressure cable shielding materials using nano carbon materials [1][2][5]. Group 1: Company Overview - The company is engaged in the research, production, and sales of silica and carbon black, primarily used in tires, industrial rubber products, cable shielding materials, and other industries [11][12]. - The company operates under the classification of "Chemical Raw Materials and Chemical Products Manufacturing - Special Chemical Products Manufacturing" [12]. Group 2: Fundraising Details - The fundraising will not exceed 20% of the company's net assets as of the end of the previous year, and the net amount after deducting issuance costs will be fully allocated to the specified project [1][5]. - The share price for the issuance is set at RMB 21.17 per share, which is 80% of the average trading price over the previous 20 trading days [2][3]. Group 3: Project Investment - The total investment for the project is approximately RMB 392.96 million, with RMB 300 million expected to be raised through this issuance [1][5]. - The project aims to replace imported conductive carbon black for high-pressure cable shielding materials, with good progress reported in research and development [5][7]. Group 4: Shareholder Structure - As of March 31, 2025, the company has a total share capital of 202,355,964 shares, with 97.13% being unrestricted shares [10]. - The controlling shareholder is Hainan Link Investment Co., Ltd., holding 48.89% of the shares, while the actual controllers are Wu Xiaolin and Wu Xiaoqiang, collectively holding 51.46% [10][11]. Group 5: Industry Context - The industry is characterized by a market-driven competitive landscape, with companies operating independently under government regulations [13]. - The company is a member of various industry associations, which play a role in standard-setting and policy advocacy [13].

Group 1 - The stock price of Qu Cheng Co., Ltd. closed at 20.85 yuan on August 22, down 0.98 yuan, a decrease of 4.49% from the previous trading day [1] - The trading volume on that day was 111,218 hands, with a transaction amount of 232 million yuan, resulting in a turnover rate of 2.70% [1] - Qu Cheng Co., Ltd. is primarily engaged in the research, production, and sales of rubber products, which are widely used in the automotive and engineering machinery sectors [1] Group 2 - The company is recognized as a specialized and innovative enterprise in Jiangsu Province and has been included in the pension fund holding list [1] - According to a report released by Xinda Securities on August 22, the company received a buy rating, highlighting stable production and sales, with quarterly sales reaching a new high [1] - The report also noted that the core operating indicators remain relatively stable, indicating resilience against raw material price fluctuations, and that the increasing penetration of new energy vehicles will drive demand for green tires [1]

Group 1 - The core viewpoint of the report is that Cecheng Co., Ltd. (605183.SH) is given a "buy" rating due to stable production and sales, with a record high quarterly sales volume [2] - The company's key operating indicators remain relatively stable, showing resilience against fluctuations in raw material prices [2] - The increasing penetration rate of electric vehicles is driving the demand for green tires, which is a positive factor for the company's growth [2]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][9]. Core Insights - The company is the sole domestic supplier of special carbon black for high-voltage cables, with its first phase of the "100,000 tons/year high-voltage cable shielding material using nano carbon materials project" entering trial production by the end of June 2024 [1]. - The technical assessment of the new product "conductive carbon black for 110kV and 220kV cable semi-conductive shielding materials" by a committee of industry experts confirmed that its performance meets international advanced standards, breaking foreign technology monopolies [1]. - The company is also advancing its second phase project focused on high-voltage submarine cable shielding materials, aiming for domestic industrialization [2]. Financial Summary - The projected revenues for 2025, 2026, and 2027 are estimated at 30.95 billion, 37.04 billion, and 47.84 billion CNY respectively, with net profits of 3.75 billion, 4.18 billion, and 5.69 billion CNY [3]. - The company’s revenue growth rates are expected to be 36.59% in 2025, 19.68% in 2026, and 29.15% in 2027 [4]. - The earnings per share are projected to increase from 1.85 CNY in 2025 to 2.81 CNY in 2027, with a corresponding decrease in the price-to-earnings ratio from 13.10 to 8.64 [4]. Market Position and Trends - The company is positioned to benefit from the increasing demand for high-dispersion silica in green tires, which can reduce rolling resistance by approximately 30% and improve fuel efficiency by 5-7% [2][46]. - The global market for precipitated silica is projected to grow from approximately 4.5 billion USD in 2024 to 6.5 billion USD by 2028, with China’s demand growth rate expected to exceed the global average [39][41].