Investment Rating - The report initiates coverage with a "Buy" rating for the company, indicating a positive outlook for the stock's performance in the coming months [4][9]. Core Insights - The company reported a steady revenue growth of 9.97% year-on-year for H1 2025, achieving a total revenue of 734 million yuan, with a net profit of 114 million yuan, reflecting a year-on-year increase of 21.88% [1]. - The reflective materials business showed resilience, generating 516 million yuan in revenue for H1 2025, up 5.7% year-on-year, driven by strong demand from the growing electric vehicle market [2]. - The optical display materials segment achieved a revenue of 128 million yuan, marking a 14.1% increase year-on-year, supported by the resilience of the home appliance market [3]. - The electronic functional materials sector saw a significant revenue increase of 25.9% year-on-year, reaching 76 million yuan, primarily due to growth in release materials and graphene thermal films [3]. Financial Summary - The company forecasts net profits of 247 million yuan, 282 million yuan, and 323 million yuan for 2025, 2026, and 2027 respectively, with corresponding price-to-earnings ratios of 25X, 22X, and 19X [4]. - Revenue projections for the years 2025 to 2027 are estimated at 1.596 billion yuan, 1.769 billion yuan, and 1.960 billion yuan, reflecting a compound annual growth rate of approximately 10.76% [10]. - The gross profit margin is expected to remain stable, with slight fluctuations projected over the next few years [10].

Core Insights - The company reported a record high in both revenue and profit for the first half of 2025, with revenue reaching 734 million yuan, a year-on-year increase of 9.97%, and net profit of 114 million yuan, up 21.88% [2] - The company is a leading manufacturer of reflective materials and related products, focusing on developing new materials and expanding its technological capabilities [2][3] Financial Performance - The company achieved a net cash flow from operations of 238 million yuan, a significant increase of 1109.27% year-on-year [2] - Revenue from electronic functional materials reached 76.65 million yuan, growing by 25.86% due to increased sales of release materials and graphene thermal films [2] - The reflective materials segment generated 516 million yuan in revenue, up 5.70%, while the optical display materials segment reported 128.71 million yuan, a growth of 14.13% [3] Business Development - The company is actively expanding its graphene product applications, which have been successfully tested and are being used in various products, including smartphones and tablets [2] - The growth in reflective materials is attributed to the booming demand in the electric vehicle market, enhancing the company's market share domestically and internationally [3] - The company is exploring new applications for reflective materials in smart driving and traffic management systems [3] Dividend Announcement - The company announced a mid-year profit distribution plan, proposing a cash dividend of 1.3 yuan per share, totaling approximately 81.2 million yuan, with a cash dividend ratio of 71.20% [3][4] - This dividend distribution aligns with the company's strategy to enhance long-term investment value and improve investor satisfaction [4]

Core Insights - Graphene films, composed of single or multiple layers of carbon atoms, are emerging as key materials driving transformation in next-generation information technology, new energy, and flexible electronics due to their unique properties [1][15] - The industry is experiencing rapid growth supported by national policies, including the "National Innovation-Driven Development Strategy Outline," which provides a robust policy ecosystem for technological research, achievement transformation, and application scenarios [1][7] - The market for graphene films in China is expected to exceed 10 billion yuan by 2027, driven by continuous optimization of CVD processes and breakthroughs in roll-to-roll continuous preparation technology [1][15] Industry Overview - Graphene films are classified based on the number of layers, functionalization, and substrate materials, with applications spanning flexible electronics, sensors, and energy storage [2][5] - The main preparation technologies for graphene films include CVD, reduction-oxidation, mechanical exfoliation, and electrochemical exfoliation, each with distinct advantages and applications [5][6] Development Background - Graphene is recognized as a strategic emerging material in China, with a multi-dimensional policy framework established to support its development, including various national guidelines and action plans [7][9] - The industry has shifted from a phase of rapid expansion to a focus on high-quality development, with a significant increase in patents related to advanced applications in semiconductor and quantum computing fields [9][11] Industry Chain - The graphene film industry chain in China is characterized by upstream material and equipment supply, midstream technology differentiation, and downstream application deepening [11][13] - The demand structure shows a gradient development, with mature applications like thermal films achieving scale production, while flexible displays and semiconductor applications are still in the development phase [13][14] Application Areas - Key application areas for graphene films include consumer electronics, flexible displays, new energy batteries, and sensors, with significant breakthroughs achieved in each sector [17][18] - For instance, graphene thermal films developed by Ningbo Moxi have a thermal conductivity of 2000 W/m·K and are used in flagship models from Huawei and Xiaomi [17][18] Competitive Landscape - The industry has formed a tiered competitive structure, with leading companies like Fuxin Technology and Two-Dimensional Carbon holding significant market shares in high-end applications [19][21] - Smaller companies focus on niche markets, employing lower-cost production methods, resulting in a fragmented market with low overall concentration [19][21] Future Trends - The graphene film industry is expected to focus on technological breakthroughs and cost reductions, with projected decreases in production costs for single-layer graphene films [23][24] - The new energy and electronic information sectors are anticipated to drive market growth, with significant advancements in applications such as lithium-ion battery composite collectors and flexible display electrodes [24][25]

Financial Performance - In 2024, the company achieved operating revenue of 1.441 billion yuan, a year-on-year increase of 8.96% [2] - The net profit attributable to shareholders reached 170 million yuan, up 8.44% year-on-year [2] - The net profit after deducting non-recurring gains and losses was 138 million yuan, reflecting a 2.94% increase [2] - Operating cash flow was 262 million yuan, showing a growth of 9.81% [2] - The company proposed a cash dividend of 1.30 yuan per 10 shares, with a total cash dividend distribution amounting to 81.1979 million yuan, resulting in a cash dividend payout ratio of 90.72% [2] Business Segments - In the reflective materials sector, the company generated revenue of 1.07 billion yuan, marking a 13.67% increase, and saw a 25% growth in sales of license plate films and vehicle safety products due to enhanced market share and global expansion [3] - The optical display materials segment includes products such as diffusion films and quantum dot films, which are expected to benefit from government policies and trends in automotive display technology [3] - In the electronic functional materials area, the company’s graphene thermal conductive films have been adopted in high-end devices, indicating strong market demand [3] Research and Development - The company established the Hangzhou Research Institute in 2023, focusing on optical design and precision processing for new functional films and display materials [4] - The R&D team grew to 174 members by the end of 2024, a 20% increase, with a significant rise in personnel holding master's degrees [4] - The research institute has developed various optical solutions and is advancing into the automotive smart cockpit sector with AR-HUD technology [5] Innovation and Future Outlook - The company is actively exploring new applications in traffic safety, including the development of an intelligent traffic warning vehicle that integrates AI and remote monitoring capabilities [5] - The company aims to enhance domestic market share and accelerate overseas expansion while focusing on technology innovation and product development as core growth drivers [5]