Core Viewpoint - The company reported a significant improvement in Q1 2025 performance, driven by a recovery in film profitability and a reversal of credit impairment, aligning with expectations [1]. Financial Performance - Q1 2025 revenue reached 3.624 billion yuan, with year-on-year and quarter-on-quarter declines of 31.9% and 8.8% respectively [1]. - Net profit attributable to shareholders was 401 million yuan, showing a year-on-year decline of 23.1% but a quarter-on-quarter increase of 709.8% [1]. - Non-recurring net profit stood at 378 million yuan, with year-on-year and quarter-on-quarter changes of -26.9% and +487.1% respectively [1]. Margin and Cost Analysis - The gross margin for Q1 2025 was 13.1%, reflecting a quarter-on-quarter increase of 1.48 percentage points, indicating stabilization in film prices [2]. - The company maintained stable expense ratios, with sales, management, finance, and R&D expense ratios at 0.5%, 1.9%, 0.0%, and 3.0% respectively [3]. - A reversal of credit impairment contributed significantly to Q1 net profit, with 172 million yuan recovered from previous provisions [3]. Business Development - The company successfully expanded its new electronic materials business, benefiting from demand in sectors such as new energy vehicles and AI servers [4]. - The company has onboarded several key clients, including Ganfeng Lithium and Xian Sefo, with expectations for further growth as production capacity expands [4]. Profit Forecast and Valuation - The company maintains net profit forecasts for 2025-2027 at 2.46 billion, 3.31 billion, and 3.70 billion yuan respectively [5]. - The target price is set at 23.5 yuan, with a maintained "buy" rating based on a 25x PE ratio for 2025 [5].