Group 1: Financial Performance - The company reported an increase in revenue but a decrease in profit for the first half of 2025, indicating a challenging cost control situation compared to peers in the PCB industry [2][3]. - The gross margin was significantly impacted by a 36.57% year-on-year increase in precious metal raw material prices, particularly gold salts, leading to a temporary decline in profitability [3][4]. - The company expects gross margin levels to gradually stabilize as measures to adjust product pricing and improve cost management are implemented [3][4]. Group 2: Market Opportunities and Growth Drivers - Future growth is anticipated to be driven by the ramp-up of high-end products, explosive downstream demand, and the release of production capacity [4][8]. - The company is experiencing strong order demand in sectors such as mobile phones, servers, and communications, with expectations for rapid sales growth in these areas in 2025 [4][8]. - The strategic layout of high-end production capacity in Zhuhai and Thailand is positioned to support the anticipated demand surge [4][8]. Group 3: Competitive Advantages - The company maintains a competitive edge through a deep binding with high-quality customer groups and exceptional responsiveness [4][7]. - A flexible production model focusing on "small batch, multiple varieties" enhances the company's ability to adapt to market changes and meet customer needs [4][7]. - The company aims to deepen its strategy with major domestic and international clients to secure high-value orders and ensure sustainable growth [4][7]. Group 4: Tax and Cost Management - The increase in income tax expenses for the first half of 2025 was primarily due to a temporary reduction in the deductible amount for R&D expenses [3][5]. - The company has implemented a comprehensive dynamic procurement management strategy to address cost pressures and enhance bargaining power, including diversified sourcing and strategic supplier partnerships [6][8]. Group 5: Stock Performance and Investor Relations - The company acknowledges the long-term decline in stock price despite the PCB industry's upward trend and is committed to improving investor communication and performance to enhance market recognition [5][6]. - Measures to optimize business structure, improve profitability, and explore shareholder return strategies, such as dividend policy adjustments, are being considered [5][6].

Core Viewpoint - The report from Guosheng Securities highlights that Jiuli Special Materials achieved a net profit attributable to the parent company of 828 million yuan in the first half of the year, representing a year-on-year increase of 28.48% [1] Financial Performance - In Q2, Jiuli Special Materials realized a net profit attributable to the parent company of 438 million yuan, which is a year-on-year growth of 38.74% and a quarter-on-quarter increase of 12.66%, indicating significant improvement in quarterly performance [1] Business Growth Drivers - The company benefits from accelerated international expansion, increased downstream nuclear power investments, and the ramp-up of high-end product sales, which are expected to support continuous growth in sales net profit margin [1] Market Position and Future Outlook - Jiuli Special Materials focuses on the manufacturing of mid-to-high-end stainless steel pipes, with capacity expansion driving continuous growth in production and sales scale. The sustained improvement in downstream demand effectively supports its profit release [1] - The accelerated high-end product iteration is anticipated to bolster the company's valuation. The firm projects that Jiuli Special Materials will achieve net profits attributable to the parent company of 1.81 billion yuan, 2.03 billion yuan, and 2.27 billion yuan for the years 2025 to 2027, corresponding to price-to-earnings ratios of 12.2, 10.9, and 9.7 times, respectively [1]

Investment Rating - The report maintains a "Buy" rating for the company [2][8]. Core Insights - The company achieved a total revenue of 1.41 billion yuan in 2024, representing a year-on-year growth of 48%, and a net profit attributable to shareholders of 388 million yuan, up 28% year-on-year, aligning with market expectations [8]. - For Q1 2025, the company reported a revenue of 357 million yuan, a 15% increase year-on-year, but a net profit of 93 million yuan, which is a 10% decline year-on-year, slightly below market expectations [8]. - The company's gross margin for 2024 was 66%, down from 76% in 2023, attributed to price declines and an increased proportion of contact lenses [8]. - The company is optimistic about the growth of high-end products, particularly the "All View" multifocal intraocular lenses, which are expected to gain market share in 2025 [8]. - The report notes a slight downward adjustment in profit forecasts due to industry growth slowdown, with projected net profits for 2025, 2026, and 2027 being 471 million yuan, 575 million yuan, and 706 million yuan respectively [8]. Financial Data and Profit Forecast - Total revenue projections for 2025 are set at 1.76 billion yuan, with a year-on-year growth rate of 24.8% [6]. - The company anticipates a gross margin of 65.9% for 2025, with a return on equity (ROE) of 16.9% [6]. - The earnings per share (EPS) for 2025 is estimated at 2.49 yuan, with a price-to-earnings (PE) ratio of 32 [6].