Core Viewpoint - Yantai Jiumu Chemical Co., Ltd. (hereinafter referred to as "Jiumu Chemical"), backed by Wanrun Co., Ltd., is racing towards its listing on the Beijing Stock Exchange, but its fundamentals show signs of concern as net profit has dropped over 20% in the first three quarters of this year, while inventory has surged to 523 million yuan [1][4]. Group 1: Company Background - Jiumu Chemical specializes in the research, production, and sales of OLED front-end materials, including OLED sublimation materials and intermediates [2]. - Established in 2005, Jiumu Chemical became a subsidiary of Wanrun Co., Ltd. after its acquisition in 2010, with Wanrun holding 45.33% of Jiumu's shares [2]. Group 2: Shareholder Dynamics - The shareholder list of Jiumu Chemical includes institutional and individual investors, with significant transactions involving natural persons who have cashed out nearly 500 million yuan over three years, yielding profits exceeding 300 million yuan [1][3]. - Notably, the "Luxiao Group" and other institutions entered the shareholder structure in 2018, with initial investments at 1.81 yuan per registered capital [2]. Group 3: Financial Performance - Jiumu Chemical's revenue grew from 706 million yuan in 2022 to 962 million yuan in 2024, but the net profit has seen a decline, with a 17.36% drop in revenue to 611 million yuan and a 23.47% decrease in net profit to 154 million yuan in the first three quarters of this year [4][5]. - The average selling price of Jiumu's core product, OLED sublimation materials, has decreased by approximately 15.7% from 5,265.85 million yuan per ton in 2024 to 4,439.75 million yuan per ton in the first quarter of this year [5]. Group 4: Inventory and Expansion Plans - Jiumu Chemical's inventory has increased significantly, reaching 523 million yuan by the end of the third quarter, a rise of about 25.12% compared to the previous year [5][6]. - Despite the low capacity utilization rate of below 80%, the company plans to raise 1 billion yuan for expansion, aiming to add 280 tons of OLED front-end materials capacity [6]. Group 5: Market Context - The OLED industry is currently facing an oversupply situation, which has affected demand and pricing for Jiumu Chemical's products [4][5].

Core Insights - UDC's subsidiary UVJC has officially opened its global headquarters and R&D center in Singapore, aiming to enhance the innovation and commercialization of its Universal Vapor Jet Printing (UVJP) technology [2] - UDC plans to invest SGD 50 million (approximately RMB 274 million) over the next five years to accelerate the development and commercialization of UVJP technology [2] - The UVJP technology, derived from Organic Vapor Jet Printing (OVJP), offers a solvent-free and mask-free deposition platform, addressing the limitations of traditional deposition methods while providing cleaner, more efficient, and precise solutions [2] Financial Performance - In the first half of 2025, UDC reported total revenue of USD 338.1 million, a 4% increase from USD 323.8 million in the same period last year [3] - The net profit for the same period was USD 131.7 million, reflecting a 20% growth compared to USD 109.2 million in the previous year [3]

Core Viewpoint - The company anticipates a significant decline in revenue and net profit for the first half of 2025, primarily due to reduced orders in its equipment business while its materials segment shows growth driven by new product introductions and increased demand for OLED materials [4][5]. Group 1: Financial Performance - For the first half of 2025, the company expects revenue between 270-290 million yuan, representing a year-on-year decrease of 15.23%-21.07% [4]. - The projected net profit attributable to shareholders is estimated to be between 25-29 million yuan, reflecting a decline of 68.41%-72.77% year-on-year [4]. - The expected net profit after deducting non-recurring items is forecasted to be between 4-4.8 million yuan, indicating a significant drop of 92.46%-93.71% compared to the previous year [4]. Group 2: Business Segments - The materials segment is projected to achieve revenue of 250-260 million yuan, showing a year-on-year growth of 18.7%-23.4%, driven by the continued ramp-up of OLED finished materials and the introduction of new products like PSPI [5]. - In contrast, the equipment segment is expected to generate revenue of 23-24 million yuan, which represents a substantial decline of 81.7%-82.5% year-on-year due to reduced orders for 6th generation OLED evaporation source equipment as the construction of related production lines nears completion [5]. Group 3: Strategic Developments - The company has commenced construction of a new base in Changchun, focusing on the R&D and industrialization of key functional materials for OLED displays, with an expected annual production capacity of 2,000 tons and an annual output value of 1 billion yuan upon completion [6]. - The project will be built in phases, with the first phase expected to be ready for trial production by June 2027 [6]. - Additionally, the company plans to raise up to 299.86 million yuan through a private placement to fund the construction of the PSPI materials production base and to supplement working capital [6].