Group 1: Zhongjuxin - In 2024, Zhongjuxin's revenue will primarily come from the integrated circuit sector, accounting for nearly 74% of total revenue, with a slow recovery in semiconductor market demand [1] - The photovoltaic industry is experiencing negative gross margins, and the company will focus on integrated circuit clients in the future [1] - Electronic specialty gases generated revenue of 247 million yuan with a gross margin of 20.70%, mainly from high-purity chlorine [1] - The second phase of electronic specialty gases products will enhance gross margins, while the electronic wet chemical segment is facing declining margins due to industry competition [1] - The company reported a loss in Q4 due to increased labor costs, R&D investments, and year-end project expenses [1] - Overseas sales revenue is approximately 90 million yuan, with sales to the U.S. accounting for less than 1% of total revenue, indicating limited impact [1] - The company plans to expand market efforts and overseas sales channels in 2025 [1] Group 2: Jiuzhou Pharmaceutical - Jiuzhou Pharmaceutical indicated that the suspension of the PLI plan in India benefits raw material drug manufacturers in other countries, with domestic raw material prices stabilizing [2] - The CDMO business is expected to see a 15% year-on-year increase in new projects and a 20% increase in contract value in 2024, with revenue nearing 3.9 billion yuan and nearly 80% from overseas clients [2] - The company anticipates a recovery of CDMO gross margins to around 40% by 2025 [2] - In Q1, the overall capacity utilization rate was approximately 60%, with capital expenditures planned to be controlled at 500-600 million yuan in 2025 [2] - The company aims to introduce leading talents in the fields of peptides, DC, and small nucleic acids over the next three years [2] - Jiuzhou Pharmaceutical plans to provide services to over 70 clients in 2024, with nearly 30 new clients onboarded, focusing on inhalation formulations and liposome technology platforms [2]

Investment Rating - The investment rating for the company is "Recommended" [1] Core Views - The company achieved a revenue of 2.352 billion yuan in 2024, representing a year-over-year increase of 38.08%. The net profit attributable to shareholders was 271 million yuan, up 28.15% year-over-year [4][7] - The precursor product sales significantly increased, with revenue from this segment reaching 578 million yuan, accounting for 24.6% of total revenue, and showing a year-over-year growth of 70.3% [7] - The specialty gas business generated 1.506 billion yuan in revenue, making up 64.05% of total revenue, with a year-over-year increase of 22.33% [7] - The company is transitioning from a focus on LED to a more balanced growth across IC, LED, and LCD industries, with IC revenue growing by 106% year-over-year [7][8] Summary by Sections Financial Performance - In 2024, the company reported a total revenue of 2.352 billion yuan, with a gross profit margin of 41.2% and a net profit margin of 11.5% [6][10] - The company’s total expenses decreased to 22.95% of revenue, down from 29.79% in 2023, indicating improved cost management [7] Revenue Breakdown - The precursor business saw a sales volume increase of 83.39%, with a sales gross margin of 48.61%, up 8.71 percentage points year-over-year [7] - The specialty gas segment's sales volume increased by 25.07%, despite a decline in sales gross margin to 39.95% [7] Future Projections - The company expects to achieve a net profit of 362 million yuan in 2025, with a projected P/E ratio of 59.3 [8][10] - Revenue is forecasted to grow to 3.072 billion yuan in 2025, with a year-over-year growth rate of 30.6% [6][10]