Investment Rating - The report maintains a "Buy-B" rating for the company [1] Core Views - The company has shown steady revenue growth and is heavily investing in the life sciences sector, which is expected to benefit from the industrialization of Direct Air Capture (DAC) technology [1][3] - The company's revenue for the first half of 2025 was 1.247 billion yuan, a decrease of 3.64% year-on-year, while the total profit reached 501 million yuan, an increase of 12.35% year-on-year [1] - The gross profit margin improved to 51.26%, up 3.8 percentage points year-on-year, driven by a higher proportion of high-margin products and a decline in raw material prices [2] Financial Performance - The company is projected to achieve revenues of 3.094 billion yuan, 3.844 billion yuan, and 4.703 billion yuan for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 21.15%, 24.24%, and 22.36% [4] - The net profit attributable to the parent company is expected to be 1.011 billion yuan, 1.254 billion yuan, and 1.560 billion yuan for the years 2025, 2026, and 2027, reflecting year-on-year growth rates of 28.40%, 24.05%, and 24.39% [4] - The company’s earnings per share (EPS) are projected to be 1.99 yuan, 2.47 yuan, and 3.07 yuan for the years 2025, 2026, and 2027, with corresponding price-to-earnings (P/E) ratios of 27.62, 22.27, and 17.90 [4] Market Data - As of September 4, 2025, the closing price of the company's stock was 53.48 yuan, with a market capitalization of 27.15 billion yuan [7] - The company’s circulating A-shares account for 3.07 billion out of a total of 5.08 billion shares [7] Strategic Initiatives - The company plans to invest 1.15 billion yuan in a high-end materials industrial park focused on life sciences, which will include various chromatography media and separation materials [2] - The company is expected to benefit from the DAC market, projected to grow from 62 million USD in 2023 to 1.727 billion USD by 2030, with a compound annual growth rate (CAGR) of 60.9% [3]