Core Viewpoint - Cathay Pacific Haitong has initiated coverage on Jiantao Laminated Board (01888) with a "Buy" rating, highlighting its position as a leading company in the copper-clad laminate industry and optimistic about the price trends and performance growth from product upgrades [1] Group 1: Company Overview - Jiantao Laminated Board is recognized as a leader in the copper-clad laminate industry, with an integrated layout of upstream materials creating a differentiated barrier [1] - The company is expected to achieve net profits of HKD 23.49 billion, 31.23 billion, and 38.15 billion for the years 2025, 2026, and 2027 respectively, with a target price set at HKD 20 based on PE valuation [1] Group 2: Product Development and Market Position - The company is advancing in high-end product development, with its first low-dielectric electronic yarn furnace announced to be in production, leading the domestic market in technical progress [1] - The company has a production capacity of 200,000 tons for traditional electronic yarn, corresponding to an estimated 7-8 million meters per year, with current price trends for traditional electronic cloth on an upward cycle [1][2] Group 3: Industry Trends and Demand - The copper-clad laminate industry is expected to see a new round of price increases in the second half of 2025, driven by improved demand from AI and limited expansion of mid-range production capacity [2] - The overall demand for copper-clad laminates is anticipated to grow positively, with major companies focusing on high-end products, indicating a favorable supply-demand balance for traditional mid-range copper-clad laminates [2]

Core Viewpoint - The investor relations event held on September 19, 2025, focused on the core businesses of Xianfeng Holdings, particularly in the fields of copper-clad laminates and animal health vaccines, attracting significant market attention [1][2]. Group 1: Copper-Clad Laminate Business - Investors showed particular interest in the performance of the copper-clad laminate business since July, focusing on aspects such as product gross margin, customer resources, cost control, and product qualification rates [3]. - The company reported a gross margin improvement in the first half of the year through customer structure optimization and product structure upgrades, achieving a production value of approximately 350 million [3]. - There was no clear indication from the company regarding the mass production of the high-speed M8 copper-clad laminate or the status of mid-to-high-end customers [3]. - The company has established a joint venture with Jiangxi Hangyu to integrate their copper-clad laminate businesses, leveraging complementary strengths for high-performance production [3]. Group 2: Animal Health Vaccine and Other Business Situations - The animal health vaccine business is currently operating normally, and the company is actively working on market expansion, internal cost control, and quality improvement to enhance operational performance [4]. - The company is monitoring the potential auction of 114.15 million shares held by the controlling shareholder and will fulfill its information disclosure obligations regarding any changes [4]. - Despite reporting a loss in the net profit excluding non-recurring items, the company aims to improve its operational situation by expanding market reach and enhancing cost efficiency across all business areas [4]. - The main business focus remains on copper-clad laminates, which are part of the new productivity electronic information industry [4].

Group 1 - The copper-clad laminate sector is experiencing strong performance, with notable gains in stocks such as Honghe Technology, Huazheng New Materials, and Ultrasonic Electronics [1]

Core Viewpoint - The ceramic copper clad laminate (CCL) industry is experiencing significant growth driven by advancements in technology and strong government support, particularly in the context of electric vehicles, 5G communication, and aerospace applications [1][12]. Industry Overview - Ceramic copper clad laminates are composite materials that combine the high thermal conductivity and insulation properties of ceramics with the electrical conductivity of copper foil, making them essential components in high-power electronic circuits [2][4]. - The market for ceramic copper clad laminates in China is projected to reach approximately 2.285 billion yuan in 2024 and is expected to exceed 3 billion yuan by 2025 [1][12]. Market Segmentation - The ceramic copper clad laminate market can be categorized based on substrate type (alumina, aluminum nitride, silicon nitride), bonding technology (DBC, AMB, DPC), and application fields (consumer electronics, automotive electronics, industrial control, aerospace) [3][4]. Material Performance Comparison - Among the main types of ceramic substrates, alumina is the most cost-effective but has lower thermal conductivity (20-30 W/mK), while aluminum nitride offers superior thermal performance (170-200 W/mK) and silicon nitride provides the best overall performance, making it suitable for extreme environments [4][6]. Policy Support - The ceramic copper clad laminate industry has received robust policy backing from the Chinese government, with multiple initiatives aimed at promoting technological innovation, standardization, and application demonstration [8][9]. Industry Chain Analysis - The industry chain includes upstream materials (ceramic substrates and copper foil), midstream manufacturing processes (DBC, AMB, DPC), and downstream applications in sectors such as electric vehicles and 5G communication [9][10]. Current Industry Status - The Chinese ceramic copper clad laminate market is witnessing rapid growth, driven by advancements in new materials and strong government support, with domestic companies enhancing their capabilities through R&D [12][18]. Competitive Landscape - The industry is characterized by a competitive landscape where international leaders dominate high-end markets, while domestic companies like Fulehua Semiconductor and BYD Electronics are rapidly gaining market share through technological advancements and full industry chain integration [14][16]. Future Trends - The ceramic copper clad laminate industry is expected to evolve towards higher technology levels, diversified applications, and global expansion, with a focus on optimizing material properties and increasing domestic production capabilities [17][19].

Investment Rating - The report assigns a "Buy" rating for the company, predicting that the stock price will outperform the Shanghai Composite Index by 15% or more within the next six months [37]. Core Insights - The company, Tongyu New Materials, is recognized as a national-level specialized and innovative "little giant" with leading core technology in the industry. Its main business revenue primarily comes from MDI modified epoxy resin, with projected revenues of 1.193 billion CNY, 886 million CNY, and 952 million CNY for 2022, 2023, and 2024 respectively, reflecting growth rates of 25.95%, -25.70%, and 7.47% [1][26]. - The global PCB market is expected to reach nearly 100 billion USD by 2026, with China's rigid copper-clad laminate output increasing from 6.1 billion USD in 2014 to 13.9 billion USD in 2021, capturing 73.9% of the global market share [2][11]. - The company has achieved breakthroughs in multiple core technologies, holding 19 authorized invention patents, and has successfully broken foreign monopolies in key technologies such as DOPO modified epoxy resin [2][29]. Summary by Sections Industry Overview - The electronic resin industry is crucial for producing copper-clad laminates, semiconductors, and printed circuit board inks, with the global rigid copper-clad laminate market experiencing fluctuations due to macroeconomic conditions [10][11]. - China's electronic resin production has significant room for growth, particularly in high-performance specialty resins that meet environmental standards [14][19]. Company Profile - Tongyu New Materials focuses on the R&D, production, and sales of electronic resins, positioning itself as a leading supplier in the domestic high-end copper-clad laminate market. The company has developed a mature product system suitable for lead-free and halogen-free applications [20][25]. - The company’s revenue sources are diversified across five major product categories, with MDI modified epoxy resin consistently being the core revenue driver, accounting for over 30% of total revenue [26][29]. Financial Performance - The company reported revenues of 1.193 billion CNY in 2022, with a net profit of 188 million CNY, and forecasts a decline in net profit to 144 million CNY in 2024 [26][30]. - In the first half of 2025, the company achieved a revenue of 517 million CNY, a year-on-year increase of 19.98%, while net profit decreased by 11.81% [26][30]. Competitive Advantages - The company has established a strong market presence and technical capabilities, being recognized as a major supplier in the domestic high-end electronic resin market, with products integrated into the supply chains of leading companies like Kingboard Group and Unimicron Technology [3][29]. - The company operates automated production lines, ensuring stable production quality and rapid delivery, while also focusing on environmental compliance and sustainable development [30].

Financial Performance - Company reported total revenue of 2.05 billion yuan for the first half of 2025, an increase of 3.97% year-on-year [1] - Net profit attributable to shareholders reached 70.48 million yuan, up 0.76% year-on-year [1] - In Q2 2025, total revenue was 1.09 billion yuan, a decrease of 3.97% year-on-year, while net profit dropped by 48.09% to 47.12 million yuan [1] Profitability Metrics - Gross margin improved to 11.31%, reflecting an increase of 18.8% year-on-year [1] - Net margin increased to 3.64%, up 1.55% year-on-year [1] - Total selling, administrative, and financial expenses amounted to 68.61 million yuan, representing 3.35% of revenue, a decrease of 26.71% year-on-year [1] Cash Flow and Assets - Cash and cash equivalents rose to 656 million yuan, a 39% increase year-on-year [1] - Operating cash flow per share was -0.06 yuan, a significant decrease of 554.04% year-on-year [1] - The company’s net asset per share was 4.65 yuan, down 0.75% year-on-year [1] Investment Returns - Historical median Return on Invested Capital (ROIC) over the past decade was 4.01%, indicating weak investment returns [3] - The worst year for ROIC was 2023, with a value of -3.48% [3] - The company has reported one loss year since its IPO, suggesting a need for further investigation into underlying causes [3] Debt and Receivables - Interest-bearing liabilities decreased by 37.6% to 1.01 million yuan [1] - The ratio of cash assets to current liabilities is 47.78%, indicating a healthy cash position [3] - Accounts receivable reached 841 million yuan, with a ratio of accounts receivable to profit at 2268.03%, raising concerns about collection efficiency [3]

Core Viewpoint - The report outlines the ongoing supervision and compliance of Nanya New Materials Technology Co., Ltd. by Everbright Securities, emphasizing the company's adherence to regulations and its operational performance in the first half of 2025 [1][3][9]. Group 1: Continuous Supervision - Everbright Securities has established and effectively executed a continuous supervision system for Nanya New Materials, ensuring compliance with relevant regulations [1][2]. - The supervisory agreement between the sponsor and the company has been signed and filed with the Shanghai Stock Exchange, clarifying the rights and obligations of both parties during the supervision period [1][3]. - The supervision activities include regular communication, site inspections, and due diligence to ensure compliance with laws and regulations [1][4]. Group 2: Information Disclosure - Nanya New Materials has not reported any violations or illegal activities that require public disclosure during the supervision period [3][9]. - The company has adhered to the information disclosure requirements, ensuring that all reports are accurate, complete, and timely, without any false statements or omissions [9][10]. Group 3: Financial Performance - For the first half of 2025, Nanya New Materials reported a revenue of 161,129.12 million yuan, a decrease of 43.06% compared to the same period in 2024 [10]. - The net profit attributable to shareholders was 8,719.02 million yuan, reflecting a 57.69% increase year-on-year [10]. - The company's total assets increased by 22.87% to 561,698.86 million yuan as of June 30, 2025 [10]. Group 4: Research and Development - The company invested 11,676.33 million yuan in R&D during the first half of 2025, a 43.34% increase from the previous year, indicating a strong commitment to innovation [13]. - Nanya New Materials has applied for 8 new patents in the first half of 2025, bringing the total to 115 patents, showcasing its focus on technological advancement [13]. Group 5: Use of Raised Funds - The company has established a dedicated account for the storage and use of raised funds, complying with relevant regulations [14][15]. - As of June 30, 2025, the net amount raised was 178,607.94 million yuan, with 109,061.67 million yuan allocated to projects and 32,840.00 million yuan temporarily supplementing working capital [14][15]. Group 6: Management and Governance - The company has maintained stable shareholding among its major shareholders, with no changes reported in the first half of 2025 [16]. - There have been no instances of share pledges, freezes, or reductions in holdings by the company's directors and senior management during the reporting period [16].

Core Viewpoint - Huazheng New Materials (603186) reported a strong performance in its 2025 mid-year report, with significant increases in revenue and net profit, indicating improved profitability and operational efficiency [1] Financial Performance - Total revenue reached 2.095 billion yuan, a year-on-year increase of 7.88% [1] - Net profit attributable to shareholders was 42.669 million yuan, up 327.86% year-on-year [1] - Gross margin improved to 12.94%, reflecting a 20.63% increase compared to the previous year [1] - Net margin rose to 2.11%, a substantial increase of 287.71% year-on-year [1] - Earnings per share increased to 0.3 yuan, up 328.57% from the previous year [1] Cost and Expense Analysis - Operating costs increased by 5.2%, attributed to higher sales volume and revenue [4] - Selling expenses rose by 12.31% due to enhanced market development efforts [5] - Management expenses remained stable with a slight increase of 0.02% as cost control measures were implemented [6] - Financial expenses increased by 6.3%, primarily due to reduced exchange gains [7] - R&D expenses grew by 4.79%, reflecting increased investment in research and development [8] Cash Flow and Debt Management - Operating cash flow per share surged to 1.12 yuan, a remarkable increase of 923.67% year-on-year [1][8] - The company experienced a 34.82% decrease in investment properties due to the reclassification of leased properties to fixed assets [2] - The company’s interest-bearing debt decreased by 12.32% to 2.204 billion yuan [1] Business Model and Market Position - The company’s performance is heavily reliant on R&D-driven initiatives, necessitating a thorough examination of the underlying factors supporting this growth [10] - Historical data indicates a median Return on Invested Capital (ROIC) of 8.2%, with a notable decline in 2023 [10] - The company has faced two years of losses since its listing, suggesting a fragile business model [10] Investor Insights - The company is held by a prominent fund manager who has recently increased their stake, indicating confidence in the company's future prospects [11]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company reported a significant increase in revenue and net profit for the first half of 2025, with revenue reaching 12.68 billion and net profit at 1.43 billion, representing year-on-year growth of 31.68% and 52.98% respectively [2][5] - The gross margin and net margin improved to 25.86% and 12.80%, reflecting increases of 4.30 percentage points and 2.65 percentage points year-on-year [2][5] - In Q2 2025, the company achieved revenue of 7.07 billion, a year-on-year increase of 35.77% and a quarter-on-quarter increase of 25.97%, with net profit reaching 863 million, up 59.67% year-on-year and 53.08% quarter-on-quarter [2][5] Summary by Sections Financial Performance - For the first half of 2025, the company achieved total revenue of 126.80 billion, with a year-on-year growth of 31.68% and a net profit of 14.26 billion, up 52.98% [2][5] - The gross margin for the first half was 25.86%, and the net margin was 12.80%, both showing significant improvements [2][5] - In Q2 2025, the company reported revenue of 70.69 billion, a 35.77% increase year-on-year, and net profit of 8.63 billion, reflecting a 59.67% year-on-year growth [2][5] Market Position and Strategy - The company is leveraging AI as a core driver for growth, with price increases and structural optimization contributing to strong performance [10] - The company has established a solid position in the market, focusing on technological innovation and collaboration with advanced terminal customers [10] - The company has developed a full range of high-speed products and is actively involved in various applications, including advanced packaging technologies [10] Future Outlook - The company is expected to benefit from the growing demand in the AI server segment, with projected net profits of 30.09 billion, 39.68 billion, and 48.77 billion for 2024, 2025, and 2026 respectively [10] - The current price-to-earnings ratios are projected to be 36.07, 27.36, and 22.26 for the respective years [10]

Market Overview - The three major stock indices rose in early trading, with the Shanghai Composite Index reaching a new high of 3746.67 points, while the Northbound 50 Index surged nearly 4% to set a historical peak [1] - By the end of the trading day, the Shanghai Composite Index slightly decreased by 0.02% to 3727.29 points, and the Shenzhen Component Index fell by 0.12% to 11821.63 points, while the Northbound 50 Index increased by 1.27% [1] - Total trading volume in the Shanghai, Shenzhen, and Northbound markets was 26,413 billion yuan, a decrease of nearly 1,700 billion yuan compared to the previous day [1] Investment Opportunities - The demand for printed circuit boards (PCBs) is expected to explode due to the acceleration of AI computing infrastructure construction, with a projected CAGR of 11.6% for server and storage PCBs from 2024 to 2029 [2] - Domestic PCB manufacturers are actively expanding high-end production capacity, with an estimated investment of 41.9 billion yuan from leading PCB companies by 2025-2026 [2] - The increase in AI server requirements for PCBs is anticipated to benefit precision equipment manufacturers, particularly in exposure, drilling, plating, and testing processes [2] Price Trends - Leading copper-clad laminate manufacturer, Jiantao, announced a price increase of 10 yuan per sheet for various products due to rising costs of copper, glass cloth, and chemical raw materials, reflecting an approximate 8% increase [3] - The price increase is attributed to strong demand for copper-clad laminates and improved profitability in downstream sectors, indicating a shift from corrective price increases to profit potential driven by supply-demand dynamics [3] Industry Regulation - A joint meeting by several government departments focused on regulating competition in the photovoltaic industry, emphasizing the importance of maintaining a healthy competitive environment for high-quality development [4][6] - The meeting outlined measures to strengthen industry regulation, curb below-cost sales, and promote orderly competition, with a focus on supporting industry self-discipline and technological innovation [6] Consumer Market Initiatives - The Ministry of Commerce is advancing the next phase of the consumer goods replacement program, emphasizing regulatory measures and risk prevention to ensure the safety of funds [7] - From January to July, the securities transaction stamp duty reached 93.6 billion yuan, a year-on-year increase of 62.5%, indicating a robust performance in the securities market [7] Product Developments - Apple’s iPhone 17 has entered large-scale production, with significant upgrades expected in AI capabilities, thermal management, flexible printed circuit boards, batteries, and back covers [8]