Investment Rating - The investment rating for the company is "Buy" [6] Core Views - The company's traditional business operations are stable, with a slight year-on-year increase in performance for the first half of 2025. The revenue for H1 2025 was 1.482 billion yuan, a decrease of 0.07% year-on-year, while the net profit attributable to shareholders was 148 million yuan, an increase of 0.66% year-on-year [2][3] - The company is actively promoting the construction of strategic emerging industry projects, including the Ningxia Xin Hua fragrance project and the Jiangsu Xin Rui fragrance project, which are expected to enter trial production in the second half of the year. The company is also expanding into lithium resources and high-end chemicals, with projects accelerating towards trial production [3][4] Summary by Sections Financial Performance - In H1 2025, the company achieved operating revenue of 1.482 billion yuan, with a slight decrease of 0.07% year-on-year. The net profit attributable to shareholders was 148 million yuan, reflecting a year-on-year increase of 0.66%. The weighted average return on equity was 6.05%, down 0.49 percentage points year-on-year. The gross profit margin was 22.98%, up 1.03 percentage points year-on-year, and the net profit margin was 11.60%, up 0.13 percentage points year-on-year [1][2] - For Q2 2025, the company reported revenue of 717 million yuan, a decrease of 2.97% year-on-year and a decrease of 6.22% quarter-on-quarter. The net profit attributable to shareholders was 77 million yuan, an increase of 7.77% year-on-year and an increase of 7.00% quarter-on-quarter [1][2] Business Segments - The demand for fatty amine products remains stable, contributing 768 million yuan in revenue for H1 2025, an increase of 4.62% year-on-year. However, the organic solvent segment faced challenges, with revenue of 173 million yuan, a decrease of 28.06% year-on-year due to falling prices [2] - The synthetic fragrance segment saw a revenue of 382 million yuan in H1 2025, reflecting a year-on-year growth of 2.31%, despite a decline in average prices [2] Future Growth Prospects - The company is expected to see growth driven by its synthetic fragrance and lithium resource businesses. Forecasted net profits for 2025, 2026, and 2027 are 307 million yuan, 373 million yuan, and 451 million yuan, respectively, with corresponding EPS of 1.59 yuan, 1.94 yuan, and 2.34 yuan. The current price corresponds to a PE ratio of 18.64, 15.33, and 12.69 for the respective years [4][10]