Investment Rating - The report maintains an "Overweight" rating for Guocera Materials with a target price of 18.50 RMB [6][4]. Core Views - Guocera Materials reported Q1 2025 revenue of 970 million RMB, an increase of 18% year-on-year but a decrease of 10% quarter-on-quarter. The net profit attributable to the parent company was 140 million RMB, up 2% year-on-year and up 11% quarter-on-quarter, slightly below the forecasted 150 million RMB due to price pressures on some products. The company is expected to have growth potential in new materials, justifying the "Overweight" rating [1][4]. Summary by Sections Financial Performance - In Q1 2025, Guocera Materials achieved revenue of 970 million RMB, with a year-on-year growth of 18% and a quarter-on-quarter decline of 10%. The net profit attributable to the parent company was 140 million RMB, reflecting a year-on-year increase of 2% and a quarter-on-quarter increase of 11%. The non-recurring net profit was 130 million RMB, up 5% year-on-year and down 0.2% quarter-on-quarter [1][3]. Market Expansion - The company is successfully expanding its market in electronic materials, particularly in MLCC electronic pastes and nano-composite zirconia. The global MLCC market is expected to grow by 7% year-on-year to 112 billion RMB in 2025. Guocera is cultivating multiple products in the MLCC field, which is anticipated to enhance its global market share [2][3]. Product Development - Demand for ceramic bearing balls is increasing due to the growth of the electric vehicle sector. The company is also actively promoting its ceramic ink and glaze products in overseas markets. The solid-state electrolyte and zirconia microbeads are being progressively applied in the lithium battery sector, with expectations for continued market share growth [3][4]. Profit Forecast and Valuation - The profit forecast for Guocera Materials is maintained at 740 million RMB for 2025, 900 million RMB for 2026, and 1.06 billion RMB for 2027, with year-on-year growth rates of 23%, 21%, and 18% respectively. The EPS is projected to be 0.74 RMB for 2025, 0.90 RMB for 2026, and 1.06 RMB for 2027. The target price is set at 18.50 RMB based on a 25x PE ratio for 2025 [4][10].

Investment Rating - The investment rating for the company is maintained at "Accumulate" with a target price of RMB 18.50 [6][7]. Core Views - The company reported Q1 2025 revenue of RMB 970 million, an increase of 18% year-on-year, and a net profit of RMB 140 million, up 2% year-on-year, although slightly below expectations due to price pressures on some products [1]. - The company is successfully expanding its market in electronic materials, particularly in MLCC-related products, with a projected global market growth of 7% to RMB 112 billion in 2025 [2]. - The demand for ceramic bearings is increasing due to the growth in the electric vehicle sector, and the company is actively promoting its overseas business in ceramic inks and glazes [3]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a revenue of RMB 970 million, with a year-on-year growth of 18% and a quarter-on-quarter decline of 10%. The net profit attributable to the parent company was RMB 140 million, reflecting a year-on-year increase of 2% and a quarter-on-quarter increase of 11% [1]. - The company’s gross margin decreased by 2.1 percentage points year-on-year to 36.8% in Q1 2025, with various expense ratios showing slight changes [3]. Market Expansion - The company is making significant progress in the electronic materials sector, particularly with MLCC electronic pastes and nano-composite zirconia, which are expected to capture a larger market share [2]. - In the catalytic materials segment, the company is advancing its applications in heavy-duty and passenger vehicles, successfully entering the supply chain of major clients [2]. Profit Forecast and Valuation - The profit forecast for the company is maintained at RMB 740 million, RMB 900 million, and RMB 1.06 billion for the years 2025, 2026, and 2027 respectively, with year-on-year growth rates of 23%, 21%, and 18% [4]. - The estimated EPS for the years 2025, 2026, and 2027 is RMB 0.74, RMB 0.90, and RMB 1.06 respectively, with a target price based on a 25x PE ratio for 2025 [4].