Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a positive outlook for investment [6][7]. Core Insights - The company is transitioning from a cyclical to a growth-oriented business model, focusing on molten salt energy storage, which is expected to enhance both performance and valuation, leading to a "Davis Double" effect [6][7]. - The traditional business is showing signs of recovery, supported by acquisitions that strengthen the company's foundational operations [6][7]. - The molten salt energy storage market is projected to grow significantly, driven by applications in concentrated solar power and flexible coal power generation, with an expected cumulative installed capacity of 19.1 GW by 2030 [6][7]. Summary by Sections 1. Transition from Cyclical to Growth - The company, established in 2001, has built an integrated production chain for nitric acid and its derivatives, becoming a major player in the domestic market [16]. - The company began generating revenue from molten salt-grade potassium nitrate in 2021 and is expected to see significant sales growth in 2025 as production capacity ramps up [16]. 2. Recovery of Traditional Business - Nitric acid prices are expected to stabilize due to a supportive raw material environment, particularly liquid ammonia, which is crucial for production [40][45]. - The company is strategically positioned to benefit from a recovery in nitric acid and potassium nitrate prices, aided by its integrated production capabilities [6][7]. 3. Growth Engine of Molten Salt Energy Storage - The company is developing a complete product matrix for molten salt, with projects in concentrated solar power and compressed air energy storage expected to drive demand [6][7]. - The molten salt market is anticipated to require 206,000 tons by 2030, with significant contributions from the solar power sector as costs decrease [6][7]. 4. Financial Forecast and Valuation - The company is projected to achieve net profits of 58 million, 86 million, and 115 million yuan from 2025 to 2027, with corresponding price-to-earnings ratios of 39, 26, and 20 [5][7]. - The target market capitalization is estimated at 2.4 billion yuan, indicating a potential upside of 9% from current levels [7]. 5. Market Dynamics and Competitive Position - The company benefits from a flexible production system that allows for cost optimization and efficient resource allocation across its product lines [62]. - The agricultural-grade potassium nitrate market is expected to grow due to increasing demand for high-quality crops and supportive government policies [50][52].

Group 1 - The report highlights a significant shift in the M&A landscape driven by new policies, particularly the "National Nine Articles" and "M&A Six Articles," which are expected to stimulate the market starting in 2024 [3][12][17] - The report emphasizes the importance of "strong chain and supplementary chain" mergers, focusing on resource integration within the same group, external mergers in new productivity industries, and expansion through acquisitions [3][19] - As of November 2, 2025, a total of 37 significant investment and merger events have been disclosed on the Beijing Stock Exchange [21] Group 2 - The case study of Deer Chemical's acquisition of Runhe Potash highlights the strategic move to enhance its potassium nitrate business, with a purchase price of 44.54 million yuan for 100% equity [4][25] - Runhe Potash reported a revenue of 208.49 million yuan and a net profit of 20.61 million yuan for 2024, indicating a strong financial position prior to the acquisition [26] - Deer Chemical focuses on deep development and innovation within the nitrate industry, with core products including nitrate, potassium nitrate, and magnesium nitrate, which are widely used across various sectors [5][35] Group 3 - The report notes that the acquisition of Runhe Potash is expected to enhance Deer Chemical's market competitiveness and align with its long-term strategic goals [26][35] - The report outlines the characteristics of current M&A activities on the Beijing Stock Exchange, including a focus on cash acquisitions and the integration of businesses that complement core operations [18] - The report indicates that the M&A trend is increasingly becoming a mainstream strategy for companies seeking to diversify and optimize their operations [13][18]

Kidztech Holdings Limited 奇 士 達 控 股 有 限 公 司 有關 (i)收購兩家公司； (ii)向合資公司提供服務；及 (iii)訂立合作意向書的理由及裨益 的補充公告 茲提述奇士達控股有限公司（「本公司」）日期為二零二五年七月二十二日的公告， 內容有關本公司與向信產投訂立合作意向書（「該公告」）。除另有指明外，本公 告所用詞彙與該公告所界定者具有相同涵義。 除該公告所載資料外，董事會謹此提供補充資料。 （ 於 開 曼 群 島 註 冊 成 立 之 有 限 公 司 ） （股份代號：6918） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 (i) 收購兩家公司 截至二零二五年六月三十日止六個月期間，本公司完成以下兩項收購： 1. 收購內蒙古湃煒科技有限公司（「湃煒」，一家在內蒙古註冊成立且持 有有效的《危險化學品經營許可證》的公司）60%的股權，作價人民幣1 元。湃煒的管理團隊專注於儲能熔鹽、核心原材料（硝酸鉀╱硝酸鈉） 以 ...

Core Viewpoint - The company focuses on the deep development and innovation of the nitric acid industry chain, integrating research and development, production, and sales, with core products including nitric acid, potassium nitrate, magnesium nitrate, energy storage molten salts, and high-end water-soluble fertilizers, widely applied in various fields such as solar thermal power generation, energy storage, chemicals, agriculture, military, and electronics manufacturing [1][2]. Company Overview - The company has established a strong circular economy by developing a series of environmentally friendly and resource-saving chemical projects, becoming a core enterprise in two major green industrial chains: "Nitric Acid-Nitrate-Molten Salt, Nitrogen Water-Soluble Fertilizer" and "Synthetic Ammonia-Nitric Acid-Nitrobenzene-Aniline, Rubber Additives" [2]. - The company holds 23 utility model patents and has three major independent brands: "Dier Chemical," "Wolfu," and "Hehuanshu," along with certifications for ISO9001, ISO14001, and ISO45001 [2]. Business Strategy - The company aims to become a global leader in green chemical solutions, focusing on the research and development of molten salt energy storage materials and innovative high-efficiency nitrogen water-soluble fertilizers, while actively expanding into emerging markets such as solar thermal energy and environmentally friendly agriculture [3]. - The company has built a mature global supply and sales network over more than 20 years in the nitric acid industry, with end customers including well-known domestic and international enterprises [3]. Financial Performance - As of the end of the reporting period, total assets amounted to approximately 750.80 million, a decrease of 2.12% from the previous year [6]. - The company's operating income was approximately 302.47 million, reflecting a decline of 26.59% year-on-year, while net profit attributable to shareholders was approximately 26.90 million, down 46.67% [6]. - The net cash flow from operating activities was negative at approximately -57.26 million, a significant decrease compared to the previous year's positive cash flow [6]. Shareholding Structure - The largest shareholder, Xindier, holds 19.64% of the company's total shares, while the actual controller, Liu Xiyu, directly holds 4.73% and collectively controls 24.37% of the shares [8]. - The second-largest shareholder, Huayang Group, has signed a concerted action agreement with Liu Xiyu, maintaining consistency on major issues [8].