Group 1 - The core viewpoint of the news is that Wanrun Co., Ltd. has seen a significant increase in its stock price, with a rise of 5.11% to 13.79 CNY per share, and a total market capitalization of 12.728 billion CNY [1] - Wanrun Co., Ltd. is engaged in three main business areas: electronic information materials, environmental protection materials, and health industry products, with functional materials accounting for 78.58% of revenue, life sciences and pharmaceuticals for 20.09%, and other categories for 1.33% [1] Group 2 - From the perspective of fund holdings, one fund under Galaxy Fund has a significant position in Wanrun Co., Ltd., specifically the Galaxy New Materials Stock Initiation A (020276), which reduced its holdings by 5,800 shares in the second quarter, maintaining 53,700 shares, representing 5.26% of the fund's net value [2] - The Galaxy New Materials Stock Initiation A (020276) has achieved a year-to-date return of 32.29%, ranking 1479 out of 4220 in its category, and a one-year return of 62.93%, ranking 1436 out of 3814 [2] - The fund manager of Galaxy New Materials Stock Initiation A is Jin Ye, who has been in the position for approximately 3 years and 265 days, with the fund's total asset size at 54.3398 million CNY [3]

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company's performance improved in the first half of 2025, with a year-on-year increase in net profit despite a slight decline in revenue. The second quarter showed a significant recovery in profitability [2][4]. - The company is actively expanding its production capacity in new materials, particularly in semiconductor manufacturing materials, which is expected to drive future growth [3][4]. Financial Performance Summary - In the first half of 2025, the company achieved revenue of 1.87 billion, a year-on-year decrease of 4.42%, while net profit attributable to shareholders was 218 million, an increase of 1.35% [2][6]. - For Q2 2025, revenue was 1.01 billion, with a year-on-year increase of 17.12%, and net profit was 138 million, reflecting a significant quarter-on-quarter growth of 73.13% [2][6]. - The gross margin for Q2 2025 was 39.77%, showing an improvement compared to previous periods, while the net margin reached 16.02% [2][3]. Business Segment Performance - The functional materials segment generated revenue of 1.47 billion, down 9.55% year-on-year, while the life sciences and pharmaceutical products segment saw a revenue increase of 20.80% to 376 million [2][3]. - The company is focusing on high-performance polymer products, with PEEK materials already in trial production and ongoing market promotion [3]. Future Outlook - The company expects to achieve net profits of 434 million, 519 million, and 581 million for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 29.23, 24.44, and 21.80 [4][10]. - The ongoing construction of the new materials project is 55% complete, with plans to add 7,900 tons/year of functional materials capacity, which is anticipated to start production within the year [3][4].