Core Viewpoint - Jinghua New Materials is an internationally leading adhesive materials company actively expanding into the electronic skin market, which opens up growth opportunities [1] Group 1: Business Strategy - The company focuses on industrial adhesive materials with a development route emphasizing scale, cost-effectiveness, differentiation, and branding [1] - For electronic and functional film materials, the company enhances product quality through precision coating technology and deepens strategic cooperation with clients via embedded R&D [1] - The company innovates in specialty paper by breaking traditional papermaking techniques, continuously improving product functionality, and achieving import substitution effects [1] - In chemical materials, the company strengthens fundamental research to achieve significant advancements in product performance and functionality [1] Group 2: Market Position and Growth Potential - The company is one of the few in China entering the humanoid robot tactile sensor, or electronic skin, sector, leveraging its strong advantages in existing materials [1] - It is anticipated that the company will enter a second growth phase by relying on electronic skin technology, with its valuation being lower than the average of comparable companies [1] - The report initiates coverage with a "Buy" rating for the company [1]

Core Viewpoint - Jinhua New Materials has seen a stock price increase of 5.06% on December 2, reaching 28.42 CNY per share, with a total market capitalization of 8.231 billion CNY, indicating a cumulative increase of 4.93% over three consecutive days [1] Group 1: Company Overview - Jinhua New Materials, established on April 19, 2006, and listed on October 20, 2017, is located in Shanghai and specializes in providing adhesive materials and products to various industrial clients, including mobile phone manufacturers and battery producers [1] Group 2: Shareholder Information - ICBC Credit Suisse Fund's fund, ICBC Yuanxing Mixed Fund (009076), entered the top ten circulating shareholders of Jinhua New Materials in Q3, holding 2.5 million shares, which is 0.97% of the circulating shares, with a floating profit of approximately 3.425 million CNY on the day of reporting [2] - The ICBC Yuanxing Mixed Fund has a total scale of 3.732 billion CNY and has achieved a year-to-date return of 39.18%, ranking 1639 out of 8122 in its category [2] Group 3: Fund Performance - ICBC Industry Preferred Mixed A Fund (014466) holds 69,700 shares of Jinhua New Materials, making it the seventh-largest holding in the fund, with a floating profit of about 95,500 CNY on the reporting day [3] - The ICBC Industry Preferred Mixed A Fund has a total scale of 39.7032 million CNY and has achieved a year-to-date return of 34.29%, ranking 2129 out of 8122 in its category [3]

IPO Review and Registration Progress - Three companies were reviewed for IPO, with two approvals and one deferral. Yongda Co. faced a deferral, while Meidele and Haifiman received approvals [2][3] - Yongda Co. reported a revenue of 361 million yuan for the first three quarters of 2025, a year-on-year decline of 25.16%, and a net profit of 70 million yuan, down 3.34% [2] - Meidele's revenue from products used in the new energy battery sector accounted for about 60% of its main business income, with a high customer concentration [2] - Haifiman specializes in high-end audio products, facing inquiries regarding its technological advancements and acquisition rationality [3] Upcoming IPOs - Three companies are set to present for IPO this week: Zuxing New Materials, Mirui Technology, and Jintai Co., all targeting the Beijing Stock Exchange [4] - Zuxing New Materials has previously attempted IPOs in 2016 and 2020 but withdrew applications. Its revenue for 2022 to 2024 was 629 million, 690 million, and 707 million yuan, with net profits showing fluctuations [4][5] - Mirui Technology's revenue for the first three quarters of 2025 was 549 million yuan, down 0.95%, with a net profit of 51 million yuan, down 12.93% [6] New Stock Listings - Two new stocks were listed last week: Hai'an Group and Nante Technology, with Nante's first-day increase of 183.03% [13][14] - This week, Jingchuang Electric is scheduled to list, with an issue price of 12.1 yuan per share. For the first three quarters of 2025, it reported a revenue of 403 million yuan, up 9.48% [13] Recent IPO Approvals and Terminations - Two IPO registrations were approved: Zhixin Co. and Qiangyi Co. [10] - Zhixin Co. plans to raise 1.329 billion yuan for production line expansion and working capital, while Qiangyi Co. focuses on semiconductor testing hardware [11] - Two IPO applications were terminated due to voluntary withdrawals, including Mingshan Environmental Energy [12] Upcoming New Stock Subscriptions - Two new stocks are set for subscription this week: Muxi Co. and Angrui Micro, both targeting the Sci-Tech Innovation Board [15] - Muxi Co. aims to raise 3.904 billion yuan for GPU development projects, reporting a revenue of 1.236 billion yuan for the first three quarters of 2025, up 453.52% [15] - Angrui Micro plans to raise 2.067 billion yuan for 5G chip development, with a revenue of 1.335 billion yuan and a net loss of 63 million yuan for the same period [16]

Core Viewpoint - Shanghai Jinghua Adhesive New Materials Co., Ltd. is set to list 27.1998 million restricted shares, accounting for 9.39% of the total share capital, on November 21, 2025, following a simplified issuance process approved by the China Securities Regulatory Commission [1] Summary by Relevant Sections - **Share Issuance Details** - The restricted shares are part of a simplified issuance to specific investors, with the issuance approved on April 29, 2025, and completed on May 21, 2025 [1] - The issuance price was set at 8.36 yuan per share, raising approximately 227 million yuan in total [1] - **Lock-up Period** - According to regulations, the shares subscribed by the issuance targets cannot be transferred within six months from the end of the issuance [1] - The lock-up period for these shares is nearing its end, meeting the conditions for listing and circulation [1]

Core Viewpoint - Jinhua New Materials experienced a decline of 5.06% on November 4, with a stock price of 28.15 yuan per share and a total market capitalization of 8.152 billion yuan [1] Company Overview - Shanghai Jinhua Adhesive New Materials Co., Ltd. was established on April 19, 2006, and listed on October 20, 2017. The company specializes in providing adhesive materials and products to industrial enterprises, mobile phone manufacturers, power battery manufacturers, and display manufacturers [1] Shareholder Analysis - ICBC Credit Suisse Fund's fund, ICBC Yuanxing Mixed Fund (009076), entered the top ten circulating shareholders of Jinhua New Materials in the third quarter, holding 2.5 million shares, which is 0.97% of the circulating shares. The estimated floating loss today is approximately 3.75 million yuan [2] - The ICBC Yuanxing Mixed Fund was established on April 23, 2020, with a latest scale of 3.732 billion yuan. Year-to-date returns are 43.78%, ranking 1500 out of 8150 in its category, while the one-year return is 48.97%, ranking 1126 out of 8043 [2] Fund Performance - The fund manager of ICBC Yuanxing Mixed Fund is Yan Yao, who has a cumulative tenure of 12 years and 74 days. The total asset scale of the fund is 9.01 billion yuan, with the best return during his tenure being 365.06% and the worst being -39.31% [3] Top Holdings - ICBC Credit Suisse Fund's ICBC Industry Preferred Mixed A Fund (014466) holds 69,700 shares of Jinhua New Materials, accounting for 3.92% of the fund's net value, making it the seventh-largest holding. The estimated floating loss today is about 104,600 yuan [4] - The ICBC Industry Preferred Mixed A Fund was established on July 4, 2022, with a latest scale of 39.7032 million yuan. Year-to-date returns are 34.83%, ranking 2419 out of 8150, while the one-year return is 31.74%, ranking 2709 out of 8043 [4] Fund Manager Profile - The fund manager of ICBC Industry Preferred Mixed A Fund is Mu Yaqian, who has a cumulative tenure of 1 year and 90 days. The total asset scale of the fund is 1.402 billion yuan, with the best return during his tenure being 40.31% and the worst being -2.7% [5]

Core Viewpoint - The company, Shanghai Yongguan Zhongcheng New Materials Technology (Group) Co., Ltd., has established a stock option incentive plan for 2025, aiming to enhance corporate governance, attract and retain talent, and align the interests of shareholders and the core team with the company's long-term development goals [2][10][30]. Group 1: Incentive Plan Overview - The incentive plan involves granting 5.8 million stock options, representing approximately 3.03% of the company's total share capital as of August 18, 2025 [2][16]. - The plan includes an initial grant of 5.12 million options (88.28% of the total) and a reserved portion of 680,000 options (11.72%) [2][16]. - The exercise price for the stock options is set at 16.10 yuan per share [4][23]. Group 2: Performance Targets - The performance targets for the first exercise period require either a revenue growth rate of no less than 10% or a net profit of at least 100 million yuan for 2025 [5][28]. - For the second exercise period, the targets are a revenue growth rate of no less than 20% or a net profit of at least 200 million yuan for 2026 [5][28]. - The third exercise period requires a revenue growth rate of no less than 30% or a net profit of at least 250 million yuan for 2027 [5][28]. Group 3: Governance and Management - The company's shareholders' meeting is the highest authority responsible for approving the implementation, modification, and termination of the incentive plan [10][11]. - The board of directors is tasked with executing the plan, while the compensation committee is responsible for drafting and revising the plan [10][11]. - The supervisory board will oversee the plan's implementation to ensure it benefits the company's sustainable development and does not harm the interests of shareholders [10][11]. Group 4: Eligibility and Restrictions - The plan's eligible participants include 112 individuals, such as directors, senior management, and key technical personnel, excluding independent directors and major shareholders [3][12]. - Participants must not have been deemed inappropriate by regulatory authorities within the last 12 months [12][13]. - The plan prohibits the company from providing loans or guarantees to participants for acquiring rights under the plan [7]. Group 5: Adjustment and Compliance - The stock options will be adjusted in case of capital increases, stock dividends, or other corporate actions [10][26]. - The plan ensures compliance with relevant laws and regulations, including the Company Law and Securities Law [10][26]. - The performance assessment system is designed to be comprehensive and scientifically sound, ensuring that the targets set are challenging yet achievable [30][31].

Investment Rating - The investment rating for the company is "Buy" [7] Core Insights - In the first half of 2025, the company achieved a revenue of 950 million yuan, representing a year-on-year growth of 10.5%, while the net profit attributable to shareholders decreased by 7.3% to 37.67 million yuan. However, the net profit excluding non-recurring items increased by 18.9% to 38.49 million yuan [1] - The company is expanding into multi-modal flexible sensors, which are expected to open new growth avenues in sectors such as robotics, healthcare, and consumer electronics [3] - The company has a strong foothold in the adhesive materials industry, with plans to ramp up production capacity significantly, targeting revenues of no less than 1.6 billion yuan in 2024 and 2.3 billion yuan in 2026, with a compound annual growth rate of 14% [4] Financial Performance - The gross margin for the first half of 2025 was 16.6%, a decrease of 0.43 percentage points year-on-year, while the net profit margin was 4.15%, down 0.72 percentage points [2] - The company forecasts net profits of 82.3 million yuan in 2025, 120.78 million yuan in 2026, and 159.19 million yuan in 2027, with respective growth rates of 23%, 47%, and 32% [5]

Meeting Overview - The fourth meeting of the supervisory board was convened in compliance with relevant laws and regulations, and the resolutions made are legally valid [1] - The meeting was held on August 8, 2025, with all three supervisors present [1] - The meeting was chaired by Mr. Qiao Li, the chairman of the supervisory board [1] Resolutions Passed - The supervisory board approved the 2025 semi-annual report and its summary, confirming that the preparation and review processes complied with national laws and internal management systems [1][2] - The board found that the report's content and format met the requirements of the China Securities Regulatory Commission and the Shanghai Stock Exchange, accurately reflecting the company's operational and financial status [1] - The board did not identify any violations of confidentiality by personnel involved in the report's preparation and review [1] Fund Utilization Reports - The board approved the special report on the storage and actual use of raised funds for the first half of 2025, with all votes in favor [2] - The board also approved the temporary use of part of the idle raised funds to supplement working capital, with unanimous support [2]

Summary of Jinghua New Materials Conference Call Company Overview - Jinghua New Materials operates in the adhesive materials industry, covering industrial-grade (54% share), electronic-grade (26% share), and optical-grade adhesives, as well as specialty paper, with applications in construction, automotive, and consumer electronics [2][5][6] Core Business Insights - The company established Beijing Jingzhigan New Materials Co., Ltd. in June 2025, focusing on electronic skin sensors for humanoid robots and medical applications [2] - The revenue targets set in the 2024-2026 equity incentive plan are at least 1.6 billion, 1.9 billion, and 2.3 billion yuan, with net profit growth targets of at least 25%, 65%, and 100% respectively [2][6] - The company has accumulated expertise in material processes and precision coating technology, supporting tactile substrates for low-cost mass production [2][7] Market Dynamics - The global adhesive materials market has seen a compound annual growth rate (CAGR) of approximately 7% over the past five years, with significant growth potential [2][8] - The Chinese market is projected to reach a sales volume of 43.9 billion square meters by 2025, with an annual CAGR of 8% from 2021 to 2025 [2][9] Competitive Advantages - Jinghua New Materials has a competitive edge due to its wide application range, high-margin product mix, and technological synergies [7] - The company is actively transitioning towards high-value products in electronic and optical grades, aiming to replace imports in the new energy sector [3][11] Financial Performance and Projections - The industrial-grade adhesive segment is expected to generate 1 billion yuan in revenue in 2024, accounting for 54% of total revenue, with a gross margin of 15% [3][13] - The electronic-grade adhesive segment is projected to achieve approximately 500 million yuan in revenue in 2024, representing 26% of total revenue, with a gross margin of 27.5% [3][15] - Future revenue projections for 2025 to 2027 are 2.23 billion, 2.64 billion, and 3.16 billion yuan, with corresponding net profits of 80 million, 120 million, and 160 million yuan [18] Production Capacity and Expansion - The company has production bases in Jiangsu, Anhui, Zhejiang, Sichuan, and Guangdong, with new projects entering the performance release phase [16] - New production lines are expected to be launched in 2025, adding 150 million square meters of capacity in electronic and optical grades [16] Emerging Trends - The trend of domestic substitution in the consumer electronics sector is becoming more pronounced, particularly in new display materials [12] - Jinghua New Materials has made breakthroughs in OCA (Optically Clear Adhesive) products, which are critical for mobile touch screens [12] Role in Robotics - Jingzhigan focuses on full-palm tactile solutions for humanoid robots, providing high sensitivity and low-temperature drift advantages [17] Conclusion - Jinghua New Materials is well-positioned to capitalize on the growing adhesive materials market, with a strong focus on high-value products and innovative applications in robotics and medical fields, supported by ambitious growth targets and a solid production capacity expansion plan [2][8][18]

Investment Rating - The report initiates coverage with a rating of "Accumulate" for the company [3][5]. Core Insights - The company focuses on adhesive materials, aiming for market share growth in both indoor and outdoor home decoration sectors in 2024, while also expanding into new products in the automotive aftermarket and packaging markets [1]. - The company has successfully entered the supply chain of CATL, the world's largest power battery manufacturer, providing various adhesive tapes for battery assembly [1]. - The optical adhesive film product line covers high-end applications in mobile displays, including foldable screens and curved screens [1]. Financial Performance - In 2024, the company is projected to achieve revenue of 1.88 billion yuan, a year-on-year increase of 20.94%, with electronic-grade adhesive materials revenue expected to reach 494 million yuan, up 48.75% year-on-year [2]. - The gross margin for electronic-grade adhesive materials is forecasted at 27.45%, an increase of 3.35 percentage points year-on-year [2]. - The company maintains a leading position in adhesive material production capacity, with plans for significant production lines across multiple provinces [2]. Profit Forecast - The projected net profits for the company from 2025 to 2027 are 82 million yuan, 103 million yuan, and 123 million yuan, respectively, with corresponding P/E ratios of 57.47, 46.18, and 38.63 [3].