Summary of Key Points Core Viewpoint - Jiangsu Fengshan Group Co., Ltd. held a performance briefing for the fiscal year 2024 and the first quarter of 2025, focusing on the company's strategic direction and industry outlook, particularly in the fields of agricultural chemicals and new energy electronic chemicals [1][2]. Company Performance - In Q1 2025, the company achieved a revenue of 322 million yuan, representing a year-on-year increase of 22.60%. The net profit attributable to shareholders was 16 million yuan, also showing a year-on-year increase [3][4]. Industry Outlook - The agricultural chemicals industry is deemed essential for food security, while the demand for electrolytes is expected to rise with the expansion of new energy battery applications. The company anticipates increased demand for its products in various downstream applications [2][4]. Technological Innovations - The company is focusing on technological innovations in the new energy electronic chemicals sector, particularly in sodium-ion and lithium-ion electrolyte products. This includes enhancing R&D capabilities and collaborating with renowned universities for new solvents and additives [2][4][5]. Project Updates - The Hubei project has entered the trial production phase as of January 2025, with products already being sold [3][4]. Strategic Focus - The company aims to develop high-end fine chemical industries, with a focus on agricultural chemicals, new energy electronic chemicals, and fine chemical new materials. This includes developing new products with market potential and enhancing existing product lines [4][5]. Green Development Initiatives - The company emphasizes green development by innovating waste treatment technologies and increasing the recycling rate of intermediate products, which helps reduce emissions and operational costs [4][5]. R&D Investment Plans - Future R&D efforts will concentrate on high-value raw materials in the agricultural sector, chemical intermediates, and new energy electronic chemicals, with a commitment to increasing investment in these areas [5][6].

Investment Rating - The report maintains a "Buy" rating for the company [5][7]. Core Views - The company has optimized its product structure, leading to improved gross margins for key products and a continuous improvement in performance. Despite facing a weak supply-demand situation in the domestic polycarboxylate superplasticizer market, the company has managed to reduce its losses significantly in 2024 and is expected to achieve breakeven in Q1 2025 [3][4]. Summary by Sections Financial Performance - In 2024, the company achieved revenue of 4.3 billion yuan, a year-on-year increase of 12%. The net profit attributable to shareholders was -159 million yuan, an improvement of 150 million yuan compared to the previous year. In Q4 2024, the company reported revenue of 1.28 billion yuan, up 55% year-on-year, and a net profit of -26 million yuan, an increase of 89 million yuan year-on-year [2][3]. - For Q1 2025, the company reported revenue of 940 million yuan, a 25% increase year-on-year, but a 26% decrease quarter-on-quarter. The net profit attributable to shareholders was -3 million yuan, an improvement of 81 million yuan year-on-year [2]. Product and Market Strategy - The company is focusing on the epoxy industry chain and is actively moving towards the new energy and medical materials markets. It is one of the largest suppliers of green low-carbon fine chemical materials derived from ethylene oxide globally. The company has significant production capacity, including 300,000 tons of ethylene oxide and 1.6 million tons of ethoxylation capacity [4]. - The company is also advancing its technology transformation projects in new energy materials, with a new lithium battery additive project expected to be operational in January 2024. Ongoing capacity expansion projects are progressing well, with completion rates of 33%, 100%, and 70% for various projects by the end of 2024 [4]. Profit Forecast and Valuation - The report maintains profit forecasts for 2025-2026 and introduces a forecast for 2027, estimating net profits attributable to shareholders of 36 million yuan, 46 million yuan, and 57 million yuan for 2025, 2026, and 2027 respectively. The corresponding EPS is projected to be 0.05 yuan, 0.07 yuan, and 0.08 yuan [5][6].