Group 1: Business Confidence and Market Position - The company expresses confidence in the future development of its copper foil business, citing industry opportunities and a recovery in the lithium battery sector [1] - The company has been a leader in the copper processing industry for 36 years and is the only enterprise with a global layout, operating 23 production bases to meet customer demands for a sustainable supply chain [2] - The company has established a solid customer base in various sectors, including AIDC, new energy vehicles, and electronic communications [2] Group 2: Product Development and Innovation - The company is innovating in copper foil technology, with products like nickel-plated copper foil and porous copper foil achieving industry leadership and receiving positive feedback from top-tier battery cell manufacturers [2] - The company has developed high-performance copper materials for AI cooling applications, which are being used in leading GPU cooling solutions [3] - A joint laboratory with West Lake University focuses on advanced metal materials and manufacturing, targeting high-growth applications in AI, data centers, and new energy vehicles [4] Group 3: Capacity Expansion and Market Strategy - The company is actively expanding and optimizing its production capacity based on customer orders and market demand, indicating a dynamic approach to capacity management [2] - The overseas business is steadily developing, contributing to profit growth, with ongoing updates to be provided in relevant announcements [2] Group 4: Sales Performance and Future Outlook - Sales of copper-based materials in the AIDC sector have significantly increased year-on-year, driven by the material's excellent conductivity and thermal properties [3] - The company aims to explore new production capabilities that align with its main business to enhance overall competitiveness and create new growth points [3]

Core Viewpoint - Zhejiang Hailiang Co., Ltd. is actively engaging in investor relations, focusing on advancements in copper foil products, overseas market expansion, and developments in the heat dissipation sector [1][2]. Group 1: Copper Foil Product Development - The company has made significant progress in the research and development of copper foil products, including nickel-plated copper foil for solid-state batteries, porous copper foil, double-sided rough copper foil, and ultra-high tensile copper foil, achieving industry-leading standards and receiving positive feedback from top domestic and international battery cell manufacturers [2]. - In the high-end standard copper foil sector, the company has optimized the bonding between PCB embedded circuit layers and substrates through reverse roughening treatment of RTF copper foil, reducing signal loss, while HVLP copper foil meets ultra-high frequency requirements with extremely low surface roughness [2]. Group 2: Overseas Market Expansion - As the first Chinese copper foil factory to expand overseas, Hailiang's Indonesian facility is accelerating its international business development and has established deep cooperation with five of the top ten global power battery clients and two of the top three 3C digital clients, with supply agreements set to commence in 2026 [3]. - The company anticipates further strengthening its competitive edge in the international copper foil market through the progress of its Indonesian operations [3]. Group 3: U.S. Market Performance - The Texas base of the company is experiencing favorable operating conditions, with a steady development trajectory. The processing fees for copper products in the U.S. are showing differentiated increases due to varying demand across different products and customer segments [4]. - The company plans to accelerate capacity ramp-up at its Texas facility to meet local market demand while focusing on high-value-added product lines to enhance profitability in the U.S. market [4]. Group 4: Heat Dissipation Sector - The company is leveraging over thirty years of copper processing expertise to meet the growing demand for heat dissipation materials driven by the explosion of AI computing power and global demand for cooling solutions [5]. - The company is currently providing various products for data centers and AI computing, including self-developed heat pipe materials and oxygen-free copper, and plans to increase investment in the heat dissipation sector to explore more market opportunities [5].

Group 1 - The company provides a variety of products in new fields, including self-developed heat pipe materials, oxygen-free copper materials, and special-shaped copper bars [1] - The company has long-term collaborations with leading cooling enterprises in the United States, China, and Taiwan, with copper-based materials applied in several top-tier GPU cooling solutions globally [1] - Currently, the U.S. base has not yet produced liquid-cooled copper bars, but the company sees business opportunities arising from related trade barrier policies and will consider advancing arrangements based on discussions with clients [1]

Core Viewpoint - Hailiang Co., Ltd. (002203.SZ) is focusing on continuous innovation in advanced copper foil technology, achieving industry-leading indicators in ultra-thin and high-resistance copper foils, with new nickel-plated copper foil products suitable for solid-state batteries ready for mass production and receiving positive feedback from leading battery companies [1] Group 1: Product Development - The company has made breakthroughs in high-end copper foil products such as RTF and HVLP, with expected sales of over 2,000 tons in the first half of 2025 [1] - New types of copper foil products, including nickel-plated copper foil for solid-state batteries, have been developed and are ready for mass production [1] Group 2: Market Demand and Growth - The demand for copper-based materials for cooling applications is expected to surge due to the explosive growth in global computing power and AI economy, with a more than 100% increase in order volume compared to the same period last year [1] - The company has established long-term partnerships with leading cooling enterprises in the US, China, and Taiwan, which are driving the demand for its products [1] Group 3: Product Offerings - The company provides a variety of products for data centers and AI computing fields, including self-developed heat pipe materials, oxygen-free copper, and customized copper bars [1]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's performance in H1 2025 showed significant improvement, with revenue reaching 44.5 billion yuan, a year-on-year increase of 1.1%, and a net profit of 710 million yuan, up 15% year-on-year [7] - The company is actively expanding its overseas operations, particularly in the U.S. market, where it achieved a revenue of 2.47 billion yuan, a year-on-year increase of 50.8% [7] - The company is expected to benefit from the rapid expansion of production capacity in the U.S., with a projected increase in capacity from 30,000 tons to 90,000 tons by the end of 2025 [7] - New product lines, including copper foil, are expected to reach breakeven by 2026, with significant sales growth in H1 2025 [7] - The company's net profit forecasts for 2025-2027 are 1.66 billion, 3.15 billion, and 3.94 billion yuan, respectively, with corresponding P/E ratios of 15.6, 8.2, and 6.6 [7] Financial Summary - Total revenue forecast for 2025 is 103.39 billion yuan, with a year-on-year growth of 18.1% [1] - The company's net profit for 2025 is projected to be 1.66 billion yuan, representing a year-on-year increase of 135.92% [1] - The latest diluted EPS for 2025 is estimated at 0.78 yuan per share [1] - The company's P/E ratio at the current price is 15.59 [1]

Core Insights - Zhejiang Hailiang Co., Ltd. reported a revenue of 44.476 billion yuan for the first half of 2025, a year-on-year increase of 1.17%, with copper processing business revenue reaching 34.070 billion yuan, up 13.59% [1] - The net profit attributable to shareholders was 711 million yuan, reflecting a 15.03% increase, while the non-recurring net profit rose by 30.56% to 812 million yuan [1] - The company sold 526,200 tons of copper and copper alloy products, marking a 3.79% increase, with significant growth in high-value-added products such as copper foil and copper bars [1] Global Market Expansion - Hailiang's overseas market achieved copper processing business revenue of 13.984 billion yuan, a 25.35% increase, with the U.S. market contributing 2.469 billion yuan, up 50.77% [2] - The company has expanded its global footprint, gaining BIS certification for factories in Vietnam and Thailand, and successfully entering the Indian market [2] - The first phase of a 100,000-ton high-performance electrolytic copper foil project in Indonesia has been completed, and a new materials technology industrial park in Morocco is under steady progress [2] Strategic Focus on Emerging Industries - Hailiang is targeting the new energy and high-end heat dissipation sectors, leveraging synergies between its "Lanzhou + Indonesia" dual-base strategy [3] - The company has established supply agreements with five of the top ten global power battery clients and two of the top three digital clients, ensuring stable future shipments [3] - Hailiang has developed over 14 new products in advanced technology areas, including nickel-plated copper foil and porous copper foil, which are ready for mass production [3] Technological Advancements - The demand for liquid cooling servers driven by the global AI computing economy has surged, with key cooling components heavily relying on copper materials [3] - Hailiang has built a product matrix for heat dissipation copper materials, including oxygen-free copper and thermal pipe materials, with a significant increase in orders from leading cooling enterprises [3] Leadership Transition - In July 2025, Hailiang successfully completed a board restructuring, with President Feng Luming taking over as Chairman, marking a new phase of development focused on international vision and technology-driven growth [4]