Core Viewpoint - The report from Dongfang Securities highlights that Jiuli Special Materials achieved a revenue of 6.105 billion yuan in the first half of the year, representing a year-on-year growth of 26.39%, with a net profit of 804 million yuan, up 36.44% year-on-year, indicating strong profit growth [1] Group 1: Financial Performance - Jiuli Special Materials reported a revenue of 6.105 billion yuan, a 26.39% increase compared to the previous year [1] - The company's net profit, excluding Yongxing Investment income, reached 804 million yuan, reflecting a 36.44% year-on-year growth [1] Group 2: Competitive Advantages - The company leverages its technological advantages to break foreign technology monopolies in some high-end products [1] - Jiuli's advanced extrusion process significantly enhances raw material utilization and product quality, contributing to high gross margins that demonstrate cost advantages and strong competitiveness [1] Group 3: Market Outlook and Expansion - The company is optimistic about the application prospects of its products in the context of the growing demand for deep-sea and acidic oil and gas [1] - Jiuli Special Materials is advancing capacity expansion projects, with progress reported at 100% for the corrosion-resistant pipeline project, 40% for the EBK company upgrade, and 35% for the 20,000-ton high-performance pipe project for nuclear and oil and gas applications [1] - The high-end capacity is expected to accelerate release, injecting new growth potential into the company [1] Group 4: Valuation - Using the DCF method for valuation, the target price for Jiuli Special Materials is set at 31.68 yuan, maintaining a "buy" rating [1]