Summary of Wanrun Co., Ltd. Conference Call Company Overview - Wanrun Co., Ltd. is a leading global supplier of liquid crystal monomers, with stable revenue from liquid crystal monomers and intermediates at over 500 million yuan, expected to maintain single-digit steady growth in the future [2][4] - The company is the largest domestic supplier of OLED sublimation precursor materials, benefiting from panel manufacturers' capacity expansion, with growth expected to accelerate after the implementation of the 8.6 generation line [2][5] - In the environmental zeolite sector, Wanrun is a key supplier to industry leader Zhangxin Wanfeng, with a recovery in sales in Q2 after a decline last year [2][6] - The pharmaceutical segment saw significant growth during the pandemic, with a near 20% year-on-year recovery in the first half of this year [2][8] - Wanrun's semiconductor materials segment is a key supplier of photoresist monomers and photoacid generators, with continuous revenue growth and plans to expand capacity by 751 tons [2][9] Core Business Segments Liquid Crystal Materials - Wanrun has established itself as a global leader in liquid crystal monomers, maintaining long-term partnerships with major international manufacturers like Merck and Dainippon Ink [4] - Revenue from liquid crystal monomers and intermediates has remained stable at over 500 million yuan, with expected single-digit growth [4] OLED Sublimation Precursor Materials - As the largest domestic supplier, Wanrun's revenue from OLED sublimation precursor materials declined in the first half of the year due to order distribution issues, but growth is anticipated with the expansion of major panel manufacturers [5] Environmental Zeolite - The demand for zeolite molecular sieves is increasing due to stricter automotive emissions standards, with the global zeolite market projected to reach $21.7 billion by 2030, growing at a CAGR of approximately 6.2% from 2022 to 2030 [6] - Wanrun's sales in this segment rebounded to over 1,000 tons in Q2, with ongoing efforts to expand into non-automotive applications [6] Pharmaceutical Sector - The pharmaceutical segment includes a full industry chain from intermediates to finished drugs, with revenue growth during the pandemic leading to a peak of around 1.5 billion yuan [7][8] - Post-pandemic, the segment has seen a recovery with nearly 20% year-on-year growth in the first half of this year [8] Emerging Businesses - In OLED terminal materials, Wanrun's subsidiary Senyu Technology has developed 6-7 types of terminal products, with a projected revenue increase from 30 million yuan in 2021 to 140 million yuan in 2024 [9] - The semiconductor materials segment is expected to grow from 150 million yuan in 2023 to 240-250 million yuan in 2024, with plans to expand production capacity [9] Future Outlook - Wanrun plans to launch a new 1,500-ton PI production line by the second half of 2025, which is expected to contribute over 200 million yuan in revenue and 40-50 million yuan in net profit [11][12] - The company anticipates a net profit of 420 million yuan in 2025 and 578 million yuan in 2026, with a current P/E ratio of approximately 29 to 21, indicating a relatively low valuation [14] - The company is entering a recovery phase with new products like OLED terminal materials and semiconductor materials expected to support significant market value growth in the coming years [15]