Core Viewpoint - The company has shown strong performance in the first half of 2025, with significant growth in revenue and net profit, driven by robust demand in the diaphragm coating processing business and advancements in product development [3][4]. Group 1: Company Performance - The company achieved operating revenue of 7.088 billion yuan, a year-on-year increase of 11.95% [3] - The net profit attributable to shareholders reached 1.055 billion yuan, up 23.03% year-on-year [3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 999.2 million yuan, reflecting a 29.17% year-on-year growth [3] Group 2: Business Segments - The diaphragm coating processing business has a full order book, meeting the increasing demand from power battery customers and making significant breakthroughs in the energy storage sector [4] - The company has optimized product design and upgraded technology in the negative electrode materials business, leading to cost reduction and efficiency improvement [4][5] - The PVDF business has effectively captured market opportunities, resulting in stable product quality and increased orders [4] Group 3: Market Position and Strategy - The company is a leader in the domestic PVDF market, with a market share exceeding 30% [11] - The company has established a closed-loop layout in the industry chain, integrating diaphragm base membranes, coating materials, and equipment [5] - The company is actively pursuing the development and market promotion of silicon-carbon anode materials, which are expected to enhance energy density significantly [7][8] Group 4: Future Outlook - The company aims to achieve a shipment target of 250,000 to 300,000 tons for negative materials next year, and 10 billion to 13 billion square meters for coating diaphragms [13] - The company plans to introduce new innovative products and improve production efficiency to maintain stable profitability in the diaphragm business [5][13] - The company has over 3 billion yuan in orders for solid-state battery production equipment, indicating strong demand in this segment [9][10]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6] Core Views - The company reported a revenue of 7.088 billion yuan for the first half of 2025, representing a year-on-year increase of 11.95%. The net profit attributable to shareholders was 1.055 billion yuan, up 23.03%, and the net profit excluding non-recurring items was 999.2 million yuan, an increase of 29.17% [2][4] - In Q2 2025, the company achieved a revenue of 3.873 billion yuan, a year-on-year growth of 17.46%, with a net profit of 568 million yuan, up 37.44%, and a net profit excluding non-recurring items of 518 million yuan, reflecting a growth of 48.32% [2][4] - The company’s separator coating sales reached 4.773 billion square meters, a year-on-year increase of 63.85%, while the sales of base film reached 528 million square meters, showing significant growth. The sales of PVDF and PAA also saw substantial increases of 68.19% and 153.1% respectively [10] - The company is expanding into new business areas, including solid-state battery equipment and materials for robotics and chip manufacturing, which are expected to contribute positively to future growth [10] Financial Performance - The company’s total revenue is projected to reach 13.448 billion yuan in 2027, with a gross profit margin expected to improve from 27% in 2024 to 31% in 2027 [14] - The net profit attributable to shareholders is forecasted to grow from 2.287 billion yuan in 2025 to 3.921 billion yuan in 2027, indicating a strong upward trend in profitability [14] - The company’s R&D expenses have significantly increased, reaching 226 million yuan in Q2 2025, reflecting a commitment to innovation and product development [10]

Core Viewpoint - The company has reported significant growth in its MLCC release film business, with sales volume increasing by 118.6% and sales revenue rising by 144.4% year-on-year in the first half of 2025 [1] Group 1: Business Performance - The MLCC release film business achieved a sales volume increase of 118.6% and a sales revenue increase of 144.4% year-on-year [1] - The company has established stable mass supply of general-purpose release films to well-known domestic clients such as Micro Capacitor Technology and Sanhuan Group [1] - The company is actively promoting validation and mass supply to international leading clients like Murata, Samsung, and Taiyo Yuden [1] Group 2: Product Development - The high-smooth release film has been successfully introduced to Micro Capacitor Technology, achieving import substitution and leading position domestically [1] - The company plans to launch ultra-high smooth release films to address bottlenecks in high-end MLCC manufacturing [1] - Multiple model base film products of MLCC release films are being sold to Japanese release film enterprises [1] Group 3: Competitive Advantage - The company leverages its integrated production system from optical-grade polyester chips, functional masterbatch, base films to coating and post-processing [1] - This integrated approach ensures stable supply and quality consistency of MLCC release films while effectively supporting customer customization needs and new product development [1] - Future market share and competitiveness of the company's MLCC release films are expected to further increase with the release of new production capacity and advancement in new product validation [1]

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [3] Core Views - The company's performance in H1 2025 met expectations, with revenue, net profit attributable to shareholders, and net profit excluding non-recurring items reaching 7.08 billion, 1.055 billion, and 990 million respectively, representing year-on-year growth of 11.95%, 23%, and 29% [1] - The negative electrode business is expected to ramp up production, with H1 2025 shipments of 70,000 tons, a slight increase year-on-year, and Q2 2025 shipments of approximately 40,000 tons, showing significant quarter-on-quarter growth [7] - The coating diaphragm business continues to grow rapidly, with H1 2025 shipments of approximately 4.8 billion square meters, a year-on-year increase of about 64% [7] - The company is projected to achieve a net profit attributable to shareholders of 2.47 billion in 2025, supported by stable growth in core businesses and the introduction of new products [7] Financial Data and Valuation - The company is expected to generate total revenue of 15.65 billion in 2025, with a year-on-year growth of 16% [8] - The projected net profit attributable to shareholders for 2025 is 2.47 billion, with a significant recovery expected in profitability [14] - The company's PE ratio is forecasted to be 19.4 in 2025, indicating a favorable valuation compared to historical levels [15]

Core Insights - The company reported a revenue of 7.088 billion yuan for the first half of 2025, representing a year-on-year growth of 11.95% [1] - Net profit attributable to shareholders reached 1.055 billion yuan, up 23.03% year-on-year, while the net profit excluding non-recurring items was 999.2 million yuan, reflecting a 29.17% increase [1] Group 1: Business Performance - The company's main business revenue from battery materials and services was 5.378 billion yuan, showing a year-on-year increase of 15.59% [1] - Coating separator processing volume reached 4.773 billion square meters, a significant growth of 63.85%, surpassing the industry average [1] - Sales volume of base film reached 528 million square meters, achieving a leap in growth [1] - Sales of PVDF and fine chemicals amounted to 14,607 tons, marking a 68.19% increase, with a leading market share in lithium battery-grade PVDF [1] - Aluminum-plastic film sales reached 9.66 million square meters, up 28.97% year-on-year [1] Group 2: Capacity and Innovation - The company has gradually put into production the first phase of negative electrode material capacity in Sichuan, with mass production of main products and core customer audits progressing smoothly [2] - New orders for automation equipment exceeded 2.4 billion yuan, showing a significant year-on-year recovery [2] - The company achieved breakthroughs in the development of solid-state batteries and battery material equipment, resulting in incremental orders [2]

Core Viewpoint - The company reported strong financial performance in the first half of 2025, with revenue and net profit growth meeting market expectations, indicating a positive outlook for future growth in various segments [1][4]. Financial Performance - In H1 2025, the company achieved revenue of 7.09 billion yuan, a year-on-year increase of 12%, and a net profit attributable to shareholders of 1.06 billion yuan, up 23% year-on-year [1]. - The gross profit margin stood at 32.1%, reflecting a 2.6 percentage point increase compared to the previous year [1]. - For Q2 2025, revenue reached 3.87 billion yuan, with a quarter-on-quarter increase of 17% and a year-on-year increase of 20% [1]. Product Segments - The negative electrode segment showed improvement, with H1 2025 shipments of 70,000 tons, a growth of approximately 5% year-on-year, and expectations for Q2 shipments to approach 40,000 tons [1]. - The company anticipates a shipment of 170,000 to 180,000 tons for the full year 2025, representing over 30% growth, and 300,000 tons in 2026, indicating over 70% growth [1]. - Coated film shipments in H1 2025 reached 4.77 billion square meters, a 64% increase year-on-year, with expectations for 2025 total shipments to be between 9.5 billion and 10 billion square meters [2]. Equipment and Innovations - The equipment business generated revenue of 1.84 billion yuan in H1 2025, with new orders amounting to 2.4 billion yuan, indicating a significant recovery [2]. - The company has made progress in solid-state solutions, achieving milestones in various dry film forming processes and accumulating over 200 million yuan in solid-state equipment orders [3]. Cash Flow and Expenses - The company reported a Q2 operating cash flow of 690 million yuan, an increase of 160 million yuan from the previous quarter [3]. - The asset impairment for Q2 was 94 million yuan, primarily due to inventory impairment provisions [3]. Profit Forecast and Investment Rating - The company forecasts net profits attributable to shareholders of 2.52 billion yuan, 3.09 billion yuan, and 4 billion yuan for 2025-2027, representing year-on-year growth of 112%, 22%, and 30% respectively [4]. - The target price for 2026 is set at 26.1 yuan, maintaining a "buy" rating based on a projected PE ratio of 18x [4].

Investment Rating - The report maintains a "Buy" investment rating for the company [9] Core Views - The company is transitioning from a single coating material provider to an integrated solution provider, covering upstream base films, adhesives, and downstream coating processes, which enhances its overall business performance [5] - The traditional business segments, including inkjet printing materials, labels, and base films, continue to provide stable cash flow, with revenue growth rates of 7.79%, 28.07%, and 111.33% respectively [5] - The new business segment of electronic-grade functional materials is also growing steadily, with a revenue increase of 61.91% year-on-year [5] - The company has made significant progress in the production of flexible sensors, with successful installation and commissioning of pilot production lines, indicating accelerated industrialization [6] - The company is a leader in the domestic BOPP segment, with a high level of technology maturity and market recognition, and is actively promoting domestic substitution in various fields [7][8] - The company's profit forecast for 2025-2027 indicates a net profit of 1.23 billion, 1.56 billion, and 2.19 billion yuan respectively, with corresponding PE ratios of 59.0, 46.6, and 33.3 times [9] Summary by Sections Market Performance - The company achieved total operating revenue of 2.541 billion yuan in 2024, a year-on-year increase of 19.23%, and a net profit of 139 million yuan, up 98.42% year-on-year [4] Investment Highlights - The company is enhancing its integrated industrial layout, with traditional and emerging businesses growing in tandem [5] - The flexible sensor production is progressing well, with pilot production lines operational and small batch orders completed [6] - The company is focusing on R&D, with new standards and patents being developed to address industry challenges [6] Profit Forecast - The company is expected to see a decline in net profit in 2025, followed by growth in subsequent years, indicating a potential recovery trajectory [11]