Core Viewpoint - TianTong Co., Ltd. (600330) is currently facing challenges in its photovoltaic equipment segment, while opportunities lie in piezoelectric crystal materials and integrated inductors. The electronic materials business is developing steadily. The company has maintained a dividend payout of at least 30% of its net profit attributable to shareholders annually [1][4]. Group 1: Business Challenges and Opportunities - The company is experiencing phase-specific difficulties in the photovoltaic equipment sector, with future opportunities primarily in piezoelectric crystal materials and integrated inductors [1]. - The electronic materials segment is showing stable growth, indicating a balanced portfolio despite challenges in other areas [1]. - The company has made significant investments in piezoelectric crystal materials, positioning itself among the top players in this field domestically [3]. Group 2: Technological Advancements - TianTong has achieved multiple technological breakthroughs in C-axis sapphire crystal growth, including the successful industrialization of 400 kg C-axis crystals and the development of 1000 kg crystals, enhancing material utilization and production capacity [2]. - The company employs an improved KY method and proprietary crystal growth furnaces, resulting in significantly lower energy consumption compared to traditional methods [2]. Group 3: Financial Performance - For the first three quarters of 2025, the company reported a main revenue of 2.459 billion yuan, a year-on-year decrease of 3.96%, and a net profit attributable to shareholders of 57.32 million yuan, down 53.85% [6]. - The third quarter alone saw a main revenue of 875 million yuan, a decline of 11.8%, and a net profit of 4.71 million yuan, down 89.61% [6]. - The company has a debt ratio of 30.61% and a gross margin of 19.82%, indicating financial pressure and the need for cost reduction measures [6][4]. Group 4: Strategic Outlook - The company is focused on the new materials and intelligent equipment sectors and is open to evaluating potential mergers and acquisitions to enhance its business capabilities [5].

Core Viewpoint - Tiantong Co., Ltd. is a leading enterprise in the electronic materials and high-end equipment sector in China, with a comprehensive industry chain advantage [1] Group 1: Business Overview - Tiantong Co., Ltd. was established on February 10, 1999, and listed on the Shanghai Stock Exchange on January 18, 2001 [1] - The company's main business includes electronic materials (such as magnetic materials, sapphire, and piezoelectric crystals) and high-end equipment (including specialized equipment for crystal materials, powder materials, and semiconductor displays) [1] - The company operates in the electronic chemicals sector and is involved in various concept sectors including flexible electronics, military electronics, robotics, nuclear fusion, superconductivity, and nuclear power [1] Group 2: Financial Performance - For Q3 2025, Tiantong Co., Ltd. reported revenue of 2.459 billion yuan, ranking 5th among 35 companies in the industry [2] - The industry leader, Xilong Science, reported revenue of 5.324 billion yuan, while the average revenue in the industry was 1.399 billion yuan [2] - The net profit for the same period was 58.0585 million yuan, ranking 26th in the industry, with the industry leader, Anji Technology, reporting a net profit of 608 million yuan [2] Group 3: Financial Ratios - As of Q3 2025, the company's debt-to-asset ratio was 30.61%, which is higher than the industry average of 28.64% [3] - The gross profit margin for the same period was 19.82%, lower than the industry average of 31.60% [3] Group 4: Executive Compensation - The chairman, Zheng Xiaobin, received a salary of 993,400 yuan in 2024, a decrease of 6,600 yuan from 2023 [4] - The president, Pan Zhengqiang, received a salary of 731,900 yuan in 2024, an increase of 31,900 yuan from 2023 [4] Group 5: Shareholder Information - As of September 30, 2025, the number of A-share shareholders increased by 43.58% to 128,100 [5] - The average number of circulating A-shares held per shareholder decreased by 30.35% to 9,630.04 [5] Group 6: Market Outlook - Huatai Securities maintains a "buy" rating for Tiantong Co., Ltd., projecting EPS of 0.22, 0.26, and 0.27 yuan for 2025 to 2027, respectively [6] - The company is experiencing steady growth in sales and gross profit from electronic surface mount products and materials, with these two segments accounting for 89.94% of total gross profit [6] - The company is actively advancing the application of piezoelectric crystal materials in 5G communication and optical communication upgrades [6]

Investment Rating - The report maintains a "Buy" rating for the company [2][5]. Core Views - The company reported a revenue of 1.584 billion RMB for H1 2025, a year-on-year increase of 1.00%, but a net profit attributable to shareholders of 52.6073 million RMB, a year-on-year decrease of 33.29% [2]. - The equipment business is under pressure due to market conditions, while the materials business is showing positive growth, leading to a cautious outlook but a maintained "Buy" rating due to the company's strategic focus on emerging materials [2][5]. - The company is enhancing its layout in the emerging materials sector, with successful applications of chip inductors in AI server power modules and advancements in piezoelectric crystal materials for 5G and optical communication [4][5]. Financial Performance Summary - In H1 2025, the company's electronic surface mount products and materials sales generated revenues of 1.37 billion RMB (up 24.97% year-on-year) and 64 million RMB (down 0.09% year-on-year), respectively [3]. - The specialized equipment business saw a significant revenue decline of 63.15% year-on-year, totaling 148 million RMB, with a corresponding gross profit drop of 69.10% [3]. - The company experienced an increase in asset and credit impairment of 56 million RMB year-on-year, with total expenses of approximately 299 million RMB, reflecting a slight increase from the previous year [3]. Growth and Strategic Initiatives - The company is focusing on research and development in specialized equipment for powder and crystal materials, catering to the semiconductor, communication, photovoltaic, and powder metallurgy sectors [4]. - Sales of powder material press equipment increased by 117% year-on-year, with servo presses accounting for 46% of sales [4]. - The company aims to accelerate the production of large-size RF piezoelectric wafers, targeting an annual output of 4.2 million pieces [4]. Earnings Forecast - The earnings per share (EPS) forecast for 2025-2027 is projected at 0.22, 0.26, and 0.27 RMB, respectively [5]. - The target price is set at 12.37 RMB, based on a price-to-earnings (PE) ratio of 56.2X for 2025 [5].