Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - Prices of acrylonitrile and caprolactam have rebounded, while refrigerants and silicon materials remain at high levels [5][29] - The low-altitude economy and robotics industry are expected to drive demand for lightweight and high-performance materials [5][25] - The semiconductor materials market is projected to grow significantly, with China's market expected to outpace global growth [18][21] Summary by Sections 1. Key Sub-industry and Product Tracking - Silicon materials and refrigerants maintain high prices, with acrylonitrile averaging 8200 CNY/ton (up 1.86%) and caprolactam at 8950 CNY/ton (up 3.77%) [9][10] - The average price of polyvinylidene fluoride is 55,000 CNY/ton (down 8.33%) [9][10] 2. Electronic Chemicals - The electronic chemicals sector is characterized by a wide variety of specialized products, with a focus on wet electronic chemicals, photoresists, and electronic gases [12][15] - The market is highly segmented with significant technical barriers, making it challenging for companies to master multiple fields [16] 3. New Quality Productivity - Carbon fiber and ultra-high molecular weight polyethylene (UHMWPE) are gaining attention due to their applications in low-altitude economy and robotics [25][30] - The demand for PEEK materials is increasing, particularly in humanoid robots, with a compound annual growth rate of 42.84% from 2012 to 2021 [31] 4. Lithium Battery/Storage Materials - Conductive agents like carbon black and carbon nanotubes are essential for lithium battery materials, with current prices for multi-wall carbon nanotube powder at 64,000 CNY/ton [34] - Sodium-ion battery materials are gaining traction due to their cost advantages and resource availability [36] 5. Photovoltaic/Wind Power Materials - EVA and POE are critical for photovoltaic applications, with current EVA prices at 10,460 CNY/ton [42][43] - The market for these materials is expected to stabilize after previous declines [42] 6. Bio-based Materials and Energy - Biodiesel prices have rebounded, with current market prices at 8,183 CNY/ton [46] - Sustainable aviation fuel (SAF) is projected to play a significant role in reducing carbon emissions in the aviation sector [44] 7. Renewable and Modified Plastics - The demand for recycled plastics is increasing, with a notable rise in the proportion of recycled materials used in packaging [48] - Special engineering plastics are gaining traction in various industries, including automotive and aerospace [48] 8. Coatings, Inks, and Pigments - The demand for new functional coating materials is growing due to the rise of wearable devices and smart home products [55] - The automotive sector is also driving demand for innovative coating solutions [55]

Core Viewpoint - The new materials industry is experiencing rapid growth, with significant opportunities arising from technological advancements and domestic production capabilities, particularly in semiconductor materials, display materials, and renewable energy sectors [2][14][18]. Group 1: New Materials Industry Overview - The global new materials industry reached a value of $2.8 trillion in 2019, with a projected growth trajectory [2][13]. - In China, the new materials industry generated a total output value of 6.4 trillion yuan in 2021, with an annual compound growth rate of 23.1% from 2010 to 2021, and is expected to reach 7.5 trillion yuan in 2022 [14][15]. - The Ministry of Industry and Information Technology forecasts that by 2025, the total output value of China's new materials industry will reach 10 trillion yuan, indicating a broad market outlook [14][18]. Group 2: Semiconductor Sector - The global semiconductor market size reached $595 billion in 2021, with expectations to grow to $790 billion by 2026, driven by developments in 5G and automotive electronics [4][21]. - The semiconductor materials market in China was valued at $119 billion in 2021, reflecting a year-on-year growth of 22.2% [34][36]. - Key materials such as electronic specialty gases and photoresists are critical for chip manufacturing, with high import dependency highlighting significant domestic production opportunities [4][42][46]. Group 3: Display Materials - The display materials sector is poised for growth, with the global OLED materials market expected to increase from approximately $900 million in 2019 to about $2.6 billion by 2024, representing a compound annual growth rate of 23.6% [5][20]. - Domestic leaders in display materials, such as Wanrun and Ruilian, are major suppliers of liquid crystal and OLED materials, benefiting from the recovery in consumer demand [5][20]. Group 4: Renewable Energy Materials - The renewable energy sector is rapidly evolving, with significant opportunities in battery materials such as composite copper foil and conductive carbon black, as well as in photovoltaic materials like reflective films [7][20]. - The market for sodium battery materials is expected to grow significantly, with projections indicating a market size of 73.8 billion yuan by 2025 [20]. Group 5: Environmental Materials - Traditional chemical applications are also seeing upgrades, with domestic companies like Zhongchumai and Jianlong Weina capitalizing on the opportunities in molecular sieves and lubricating oil additives [8][20]. - Aerogels, known for their exceptional insulation properties, are gaining traction in construction and electric vehicle markets, with domestic firms like Chenguang New Materials actively entering this space [9][20].

Core Viewpoint - The new materials industry is experiencing rapid growth, with significant opportunities arising from technological advancements, policy support, and the need for domestic production capabilities in response to international trade tensions [2][9][13]. Group 1: Industry Overview - The global new materials industry reached a value of $2.8 trillion in 2019, with a competitive landscape divided into three tiers: developed countries in the first tier, rapidly developing countries like China in the second tier, and emerging economies in the third tier [8][12]. - China's new materials industry generated a total output value of 6.4 trillion yuan in 2021, with an average annual growth rate of 23.1% from 2010 to 2021, and is projected to reach 7.5 trillion yuan in 2022 [9][10]. Group 2: Semiconductor Sector - The global semiconductor market was valued at $595 billion in 2021, with expectations to grow to $790 billion by 2026, driven by advancements in 5G and automotive electronics [3][16]. - The semiconductor materials market in China reached $11.9 billion in 2021, growing by 22.2% year-on-year, indicating a significant increase in domestic demand [31][32]. Group 3: Display Materials - The global OLED materials market is expected to grow from approximately $900 million in 2019 to about $2.6 billion by 2024, with a compound annual growth rate (CAGR) of 23.6% [4]. - Domestic companies like Wanrun and Ruile New Materials are leading suppliers in the liquid crystal and OLED material sectors, with significant market shares [4][15]. Group 4: New Energy Materials - The new energy sector is rapidly evolving, with key materials such as composite copper foil, conductive carbon black, and sodium battery materials expected to see substantial market growth [5][15]. - The market for photovoltaic materials is projected to reach 20 billion yuan by 2025, driven by increasing demand for solar energy solutions [15]. Group 5: Environmental Materials - Traditional chemical applications are witnessing upgrades, with domestic companies like Zhongchumai and Jianlong Weina capitalizing on opportunities in molecular sieves and lubricating oil additives [6][15]. - Aerogels, known for their exceptional insulation properties, are gaining traction in construction and electric vehicle markets, with companies like Chenguang New Materials entering this space [6][15].

Group 1 - The company held an online performance briefing for the 2024 fiscal year on May 16, 2025, focusing on performance, new product development, and market conditions [1] - In Q1 2025, the company reported a loss of 0.048 yuan per share, while competitors like Yongdong Co. and Longxing Technology achieved profitability, attributing the loss to raw material price fluctuations and a lag in product pricing adjustments [1] - The company's inventory increased by 212 million yuan and accounts receivable rose by 73.62 million yuan in Q1 2025, primarily due to a production and sales rate below 100%, leading to higher product stock [1] Group 2 - The first phase of the carbon nanotube powder project has been completed, with products mainly sold to lithium battery companies and conductive paste manufacturers, and the company is actively pursuing customer collaborations amid industry supply-demand changes [2] - The company has maintained close cooperation with leading domestic enterprises in the tire sector, including joint development of new products [2] - The company is advancing new product research and industrialization despite performance pressures, indicating a positive future development outlook [2]

Group 1: Financial Performance - In Q1 2025, the company reported a loss of 0.048 CNY per share, while competitors Yongdong and Longxing achieved profitability [2] - The increase in inventory was 212 million CNY, and accounts receivable rose by 73.62 million CNY, raising concerns about potential impairment risks [2] - The primary reason for the Q1 loss was fluctuations in raw material prices and a lag in adjusting product pricing mechanisms, which pressured profit margins [2] Group 2: Product Development and Sales - The sales revenue from conductive carbon black products was not separately disclosed for 2024, as it constituted a small portion of total sales [2] - The current production capacity for superconductive carbon black is 30,000 tons, with 4-6 product types available and several more in development [3] - Major customers for conductive carbon black include well-known domestic lithium battery companies, although specific names cannot be disclosed [3] Group 3: Market and Competitive Landscape - The company has not exported products to the U.S., thus the impact of the U.S.-China trade war on sales is minimal [3] - Compared to competitors, the company has a larger production capacity for carbon black, which affects sales flexibility and cost structure [3] - There is a growing trend of domestic substitutes for imported specialty carbon black products due to advancements in domestic technology [4] Group 4: Operational Strategies - The company is implementing cost reduction and efficiency improvement measures through supply chain collaboration, technological innovation, and product upgrades [4] - The average gross margin for conductive carbon black products is not disclosed, but the company acknowledges that current margins are low [4] - The company is actively pursuing various applications for its superconductive carbon black, including potential uses in robotics [4]

Financial Performance - In 2024, the company achieved a revenue of ¥4,227,644,015.85, a decrease of 7.35% compared to the previous year [1] - The total profit for 2024 was ¥126,057,903.72, an increase of 12.88% year-on-year [1] - The net profit attributable to shareholders in 2024 was ¥111,390,280.13, up by 9.90% from the previous year [1] - In Q1 2025, the revenue was ¥870,437,590.77, down by 9.34% year-on-year [1] - The total profit for Q1 2025 was ¥34,911,439.31, a decrease of 6.16% compared to the same period last year [1] - The net profit attributable to shareholders in Q1 2025 was ¥29,663,303.94, also down by 6.16% year-on-year [1] Profit Distribution - For 2024, the company plans to distribute a cash dividend of ¥1.50 per 10 shares (including tax) to all shareholders, pending approval at the 2024 annual general meeting [2] Business Expansion Strategy - The company is expanding its coal chemical deep processing products into new materials, with a current capacity of 200,000 tons/year for modified asphalt [3] - The "2×100,000 tons/year anthracene oil deep processing project" and "500,000 tons/year coal tar deep processing project" have been approved, which will enhance the product line in the new materials sector [3] - The company aims to extend its carbon black products into high-end markets, with a project for special carbon black production of 70,000 tons/year [3] - A new 500,000 tons/year coal tar deep processing project has been approved, aiming to achieve a processing capacity of one million tons [3] Future Growth Drivers - The company’s convertible bonds "Yongdong Convertible 2" projects are expected to release capacity in 2025 [4] - Ongoing construction of a 500,000 tons/year coal tar deep processing project and a 40,000 tons/year carbon black production line [5] - The 2024 stock issuance project for specific targets aims to enhance the coal tar deep processing capacity and industry chain [5] Production and Sales Data - In 2024, carbon black production was 360,334.81 tons, with sales of 360,566.25 tons [6] - Modified asphalt production reached 183,846.24 tons, with sales of 184,683.32 tons [6] - Industrial naphthalene production was 80,356.75 tons, with sales of 79,724.98 tons [6] Circular Economy Advantages - The company focuses on the continuous extension and efficient utilization of the coal tar deep processing industry chain, aiming for high-quality carbon black and fine chemical products [8] - The integration of coal tar processing, carbon black production, waste gas power generation, and fine chemical new materials forms a sustainable circular industry model [8] - The strategy aims to enhance high-end carbon black varieties and extend the fine processing chain, increasing the variety of high-value-added products [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][6][14] Core Views - The company's Q4 performance exceeded expectations, with a significant year-on-year profit turnaround, driven by the domestic substitution trend for conductive carbon black amid escalating US-China trade tensions [6][8] - The company reported a revenue of 10.132 billion yuan in 2024, a year-on-year increase of 7.20%, and a net profit attributable to shareholders of 25 million yuan, marking a substantial recovery from losses [6][9] - The forecast for net profit for 2025-2027 has been adjusted, with expected profits of 285 million yuan, 375 million yuan, and 492 million yuan respectively, indicating a strong growth trajectory [6][9] Financial Summary - In Q4 2024, the average price of coal tar was 3,575 yuan per ton, down 8.71% quarter-on-quarter, while the average price of carbon black was 7,874 yuan per ton, down 5.68% [7] - The average price difference for carbon black increased significantly to 2,512 yuan per ton in Q4 2024, contributing to the company's better-than-expected net profit [7] - The company has a conductive carbon black production capacity of 20,000 tons, which is expected to benefit from the accelerated domestic substitution trend [8] Financial Projections - Revenue projections for 2025 are set at 10.610 billion yuan, with a year-on-year growth of 4.7% [9] - The projected gross margin for 2025 is 8.4%, with a net margin of 2.8% [9] - The company's earnings per share (EPS) are expected to be 0.39 yuan in 2025, increasing to 0.67 yuan by 2027 [6][9]