Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 2.765 billion in the first half of 2025, representing a year-on-year increase of 24.7%. The net profit attributable to shareholders was 52 million, up 23.7% year-on-year, while the net profit after deducting non-recurring items was 29 million, compared to a loss of 3 million in the same period last year [3][4]. - In Q2 alone, the company achieved a revenue of 1.5 billion, marking a significant year-on-year growth of 57.2%. The net profit attributable to shareholders for Q2 was 28 million, a slight decrease of 0.7% year-on-year, while the net profit after deducting non-recurring items was 17 million, showing a small profit compared to the previous year's loss [3][4]. - The display materials segment showed rapid growth, with a 43.8% increase in revenue, while the application materials segment saw a decline of 19.39%. The growth in display materials is attributed to the acceleration of orders from Shenzhen Guoxian for automotive displays and 3A cover plates [8]. - The gross profit margin for the period was 16.4%, an increase of 0.6 percentage points year-on-year. The gross profit margin for application materials decreased by 4.05 percentage points to 14.79%, while the new display segment saw an increase of 2.29 percentage points to 16.74% [8]. - The company is expected to expand its new materials business and increase production of UTG cover plates, with projected net profits of 160 million and 230 million for 2025 and 2026, respectively, corresponding to PE ratios of 77 and 54 [8].

Investment Rating - The report maintains an "Outperform" rating for the company [2] Core Insights - The company achieved a turnaround in Q1 2025, reporting a revenue of 1.265 billion yuan, a year-on-year increase of 0.1%, and a net profit of 24 million yuan, reflecting a year-on-year growth of 73% [7] - The company's gross margin improved to approximately 17.74% in Q1 2025, up 3.41 percentage points year-on-year, indicating enhanced profitability [7] - The construction of production lines is progressing steadily, with the second phase of the UTG project expected to reach an annual capacity of 15 million pieces by the end of October 2025 [7] - The company is expanding its market presence, becoming a core supplier for leading domestic customers in the flexible display sector [7] Financial Data and Profit Forecast - Total revenue is projected to grow from 4.894 billion yuan in 2024 to 6.421 billion yuan in 2025, representing a year-on-year growth rate of 31.2% [6] - The net profit attributable to the parent company is expected to increase from 140 million yuan in 2024 to 207 million yuan in 2025, with a year-on-year growth rate of 47.4% [6] - The company's earnings per share are forecasted to rise from 0.15 yuan in 2024 to 0.22 yuan in 2025 [6] - The report anticipates a compound annual growth rate (CAGR) of 42% for net profit from 2024 to 2027, indicating strong future performance [7]