Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][19] Core Views - The company achieved steady growth in net profit in the first half of 2025, with a revenue of 471 million yuan, representing a year-on-year increase of 13.77%, and a net profit of 147 million yuan, up 15.33% year-on-year. The growth is attributed to the increased domestic market penetration and localization of polymer material additives [1][9][10] - The company is the largest domestic seller of nucleating agents and is positioned to benefit from the increasing domestic substitution rate due to rising international trade tensions. The nucleating agent market is expected to exceed 1 billion USD globally by 2025 [2][18] - The company plans to continue seeking strategic acquisitions to enhance its competitive strength and promote high-quality development, despite the recent termination of a planned acquisition of a leading ITO target material company [2][18] Financial Performance Summary - In the first half of 2025, the nucleating agent segment generated 297 million yuan in revenue, a 17.29% increase year-on-year, accounting for 62.97% of total revenue with a gross margin of 56.05% [10] - The company’s revenue forecast for 2025-2027 is adjusted to 301 million, 350 million, and 402 million yuan respectively, with diluted EPS of 1.60, 1.86, and 2.13 yuan [3][19] - The company’s overall sales gross margin was 45.79%, with a net profit margin of 31.26% in the first half of 2025, reflecting a year-on-year improvement [9][10] Business Segmentation - The nucleating agent segment is the largest contributor to revenue, followed by synthetic hydrotalcite and antioxidant segments, with significant growth observed in the antioxidant segment, which saw a 129% year-on-year increase in revenue [10] - International revenue reached 120 million yuan, a 70.08% increase year-on-year, indicating strong overseas market performance [10] Market Outlook - The company is well-positioned to capitalize on the growing demand for nucleating agents and synthetic hydrotalcite, with a focus on expanding both domestic and international markets [2][18] - The anticipated increase in the domestic substitution rate for nucleating agents is expected to accelerate due to international trade risks, providing further growth opportunities for the company [2][18]