Core Viewpoint - Zhangguang Co., Ltd. (301092.SZ) experienced a stock price decline of 5.45%, closing at 31.94 yuan, indicating that the stock is currently in a state of underperformance [1] Group 1: Company Overview - Zhangguang Co., Ltd. was listed on the Shenzhen Stock Exchange's Growth Enterprise Market on November 2, 2021, with a total issuance of 33.33334 million shares, accounting for 25.00% of the post-issue total share capital [1] - The initial public offering (IPO) price was set at 36.31 yuan per share, with Guosen Securities Co., Ltd. serving as the sponsor [1] Group 2: Fundraising and Financials - The total amount raised from the IPO was 1.21 billion yuan, with a net amount of 1.10 billion yuan, exceeding the original fundraising plan by 723 million yuan [1] - The funds raised are intended for several projects, including a production line for 15,000 tons of food-grade resin, a technical upgrade for a 2,300-ton macroporous adsorption resin project, automation upgrades, and the establishment of a research center for ion exchange resin technology [1] - The total issuance costs for the IPO were 110 million yuan, with Guosen Securities receiving 86.723 million yuan as sponsorship and underwriting fees [1]

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [6]. Core Views - The company reported a revenue of 2.554 billion yuan in 2024, a year-on-year increase of 2.6%, and a net profit attributable to the parent company of 787 million yuan, up 9.8% year-on-year [1]. - The revenue from the lithium extraction project significantly declined, impacting the overall performance of the system equipment segment, while the adsorption materials business showed robust growth [2][3]. - The life sciences segment is expected to continue its growth trajectory, driven by the demand for high-quality solid-phase synthesis carriers and the performance of GLP-1 peptide drugs [3]. Summary by Sections Financial Performance - In Q4 2024, the company achieved a revenue of 662 million yuan, down 27.4% year-on-year, but up 10.89% quarter-on-quarter, with a net profit of 191 million yuan, down 4.0% year-on-year [1]. - For Q1 2025, the company reported a revenue of 577 million yuan, a decrease of 8.6% year-on-year and 12.91% quarter-on-quarter, while the net profit was 193 million yuan, an increase of 14.2% year-on-year [1]. Business Segments - The adsorption materials business generated 1.986 billion yuan in revenue, up 27.61% year-on-year, while the system equipment segment saw a revenue decline of 43.13% to 469 million yuan [2]. - The revenue from the lithium extraction system equipment was only 99 million yuan in 2024, a dramatic drop of 80.96% compared to 520 million yuan in 2023 [2]. Growth Areas - The life sciences segment's revenue reached 568 million yuan in 2024, reflecting a growth of 28% [3]. - The ultra-pure water segment achieved significant breakthroughs, with substantial orders from key semiconductor companies, indicating a growing market presence [3]. Profitability Forecast - The net profit forecasts for 2025-2027 are adjusted to 1.127 billion yuan, 1.463 billion yuan, and 1.706 billion yuan, respectively, maintaining the "Buy" rating [3].

Fundraising Overview - Zhejiang Zhangguang Industrial Co., Ltd. successfully raised a total of RMB 121,033.34 million through its initial public offering, with a net amount of RMB 109,997.56 million after deducting issuance costs [1][3] - The company issued 33,333,334 shares at a price of RMB 36.31 per share, and the funds were fully received by October 25, 2021 [1][3] Investment Projects - The raised funds are allocated to two main projects: 1. A production line for 15,000 tons of food-grade resin and intelligent warehouse technology renovation, with a total investment of RMB 37,692 million [2][3] 2. The establishment of an ion exchange resin technology research and development center at Ningbo Zhangguang Resin Co., Ltd. [3] Management of Raised Funds - The company has established special accounts in various banks to manage the raised funds, ensuring compliance with regulatory requirements and protecting investor interests [4][5] - The funds are stored in dedicated accounts for specific projects, including the food-grade resin production line and the ion exchange resin R&D center [4][5] Use of Excess Funds - The company has excess raised funds amounting to RMB 72,305.56 million, which will be used to permanently supplement working capital and invest in functional high polymer new materials projects [3][4] Account Closure - The company has completed the closure of certain fundraising special accounts related to the factory automation upgrade project, as the funds have been fully utilized [5]

Report Summary 1. Report Industry Investment Rating There is no information about the industry investment rating in the provided content. 2. Core Viewpoints of the Report - The company has traditional advantages in the nuclear power field and has launched import - substitution products in cooperation with relevant national nuclear technology authorities, which have entered into practical application. It is also carrying out R & D and promotion in the battery recycling and solar polysilicon fields [21]. - The company aims to gain more market share in the mid - high - end water treatment market, as there is a large space for import substitution in high - value - added products for condensate water treatment [21]. - The completion of the company's fundraising projects will enhance its core competitiveness, reduce labor costs, increase production efficiency, and meet market demand [22]. - The company's Jingmen production base focuses on new energy, environmental protection, and biomedicine fields, and is expected to start trial production by the end of 2025 and reach the intended use state by the end of April 2026 [22]. - According to the 2024 annual profit distribution plan, the company plans to distribute a cash dividend of 2.60 yuan per 10 shares (tax - included) to all shareholders, and future dividend plans will be determined based on specific circumstances [22][23]. 3. Summary by Relevant Catalogs 3.1. Research Basic Situation - The research object is Zhengguang Co., Ltd., belonging to the chemical products industry. The reception time was May 15, 2025. The listed company's reception personnel included the deputy general manager, board secretary, financial director Wu Yafei, and the securities affairs representative Che Cheng [16]. 3.2. Detailed Research Institutions - The research institutions include Huian Fund (represented by Wang Minglu), Huihong Asset (represented by Zhang Li), Nuoyan Fund (represented by Zhou Xiaoqi), CITIC Securities (represented by Sun Chenxing), PICC Asset (represented by Tian Lei), Guotai Haitong (represented by Wang Ruijian), and CICC (represented by Ye Endong) [17]. 3.3. Research Institutions Proportion There is no information about the research institutions proportion in the provided content. 3.4. Main Content Data - **Company Introduction**: The board secretary introduced the company's basic and operating conditions, as well as industry and product information [21]. - **New Energy Progress**: The company has advantages in the nuclear power field, and is also involved in battery recycling and solar polysilicon R & D [21]. - **Mid - High - End Water Treatment Market Goals**: The company aims to gain more share in this market, with large import substitution space for condensate water treatment resin [21]. - **Fundraising Project Completion**: As of the end of 2024, some projects have been completed, which will enhance the company's competitiveness [22]. - **Jingmen Production Base**: Focuses on new energy, environmental protection, and biomedicine, expected to start trial production by the end of 2025 and reach normal operation by April 2026 [22]. - **Dividend Situation**: Plans to distribute a cash dividend of 2.60 yuan per 10 shares in 2024, and future dividends will be determined according to circumstances [22][23].

Investment Rating - The report maintains a rating of "Increase" for the industry, indicating a positive outlook for investment opportunities in the sector [6]. Core Insights - The demand for ion exchange resins is expanding across various sectors, including semiconductors, nuclear power, and pharmaceuticals, with a particular focus on leading companies like Bluestar Technology and ZG Co [4][5]. - In the semiconductor industry, ion exchange resins are crucial for producing ultra-pure water, which is essential for the manufacturing of electronic components. The production of a single integrated circuit requires approximately 3 to 5 liters of ultra-pure water, with a 6-inch wafer consuming about 1.2 tons [1]. - In the nuclear industry, ion exchange resins are used in the water treatment systems of reactors, ensuring the provision of high-quality ultra-pure water, which is vital for the stable operation of steam generators [2]. - In the biopharmaceutical sector, ion exchange resins are widely utilized for the separation and purification of various biological drugs, including antibiotics and traditional Chinese medicine components, due to their high efficiency and product purity [3]. Summary by Sections Semiconductor Industry - Ion exchange resins are primarily used in ultra-pure water production for cleaning and processing electronic components, with stringent quality requirements as technology advances [1]. Nuclear Industry - The use of nuclear-grade resins in reactor water treatment systems is critical for maintaining operational efficiency and reducing fouling in steam generators [2]. Pharmaceutical Industry - Ion exchange and adsorption resins are extensively applied in the extraction and purification of a wide range of biopharmaceuticals, benefiting from their simple operation and high product purity [3]. Company Focus - Bluestar Technology is recognized as a leading domestic player in the adsorption separation materials and technology sector, with a current production capacity of 50,000 tons per year and plans for expansion [4]. - ZG Co is also highlighted for its significant production capabilities in ion exchange and adsorption resins, with ongoing investments in new projects to enhance its production capacity [4].

Investment Rating - The report maintains a rating of "Increase" for the industry, indicating a positive outlook for investment opportunities in the sector [6]. Core Insights - The demand for ion exchange resins is expanding across various sectors, including semiconductors, nuclear industry, and pharmaceuticals, with a particular focus on leading companies like Bluestar Technology and ZG Co [4][5]. - In the semiconductor sector, ion exchange resins are crucial for producing ultra-pure water, which is essential for the manufacturing of electronic components. The production of a single integrated circuit requires approximately 3 to 5 liters of ultra-pure water, with a 6-inch wafer consuming about 1.2 tons [1]. - In the nuclear industry, ion exchange resins are used in the water treatment systems of reactors, ensuring the provision of high-quality ultra-pure water, which is vital for the stable operation of steam generators [2]. - The pharmaceutical sector utilizes ion exchange resins for the separation and purification of various biopharmaceuticals, including antibiotics and traditional Chinese medicine components, due to their high purity and operational efficiency [3]. Summary by Sections Semiconductor Industry - Ion exchange resins are primarily used in ultra-pure water production for semiconductor manufacturing, with stringent quality requirements as technology advances [1]. Nuclear Industry - The use of nuclear-grade ion exchange resins in reactor water treatment systems is critical for maintaining operational efficiency and reducing fouling in steam generators [2]. Pharmaceutical Industry - Ion exchange and adsorption resins are widely applied in the pharmaceutical industry for the extraction and purification of various drugs, benefiting from their simple operation and high product purity [3]. Company Focus - Bluestar Technology is recognized as a leading domestic player in the adsorption separation materials and technology sector, with a current production capacity of 50,000 tons per year and plans for expansion [4]. - ZG Co is actively investing in the ion exchange and adsorption resin field, with a designed production capacity of 19,750 tons and plans for a new project in Hubei with a total investment of 1 billion RMB [4].

Group 1: Company Overview - The company specializes in nuclear power applications and has established collaborations with national nuclear technology authorities to enhance product offerings [2][3] - The company is actively involved in battery recycling, extracting valuable metals such as manganese, cobalt, and nickel from production waste [3] Group 2: Market Goals - The company aims to capture a larger share of the mid-to-high-end water treatment market, focusing on high-parameter, high-capacity power plants [3] - Condensate water treatment accounts for over 90% of boiler feed water, making its quality critical for safe power plant operations [3] Group 3: Investment Projects - As of the end of 2024, several projects have been completed, including the ion exchange resin technology R&D center and automation upgrades [3] - The annual production line for food-grade resin, capable of processing 15,000 tons, was completed by the end of 2023 [3] - The large-pore adsorption resin technology upgrade project, with a capacity of 2,300 tons, was completed by the end of 2022 [3] Group 4: Production Base Development - The Jingmen production base will focus on applications in new energy, environmental protection, and biomedicine, complementing the Ningbo production capacity [4] - The Jingmen project is expected to begin trial production by the end of 2025 and reach operational status by April 2026 [4] Group 5: Dividend Policy - The company plans to distribute a cash dividend of 2.60 yuan (including tax) for every 10 shares based on the 2024 profit distribution plan, with no stock dividends or capital reserve conversions [4]

Macro Insights - US inflation continues to decline, with April CPI data showing a drop below expectations, indicating a weakening inflation risk due to tariff adjustments [3] - The reduction in tariffs suggests a decrease in recession risks for the US, allowing the Federal Reserve to adopt a more patient approach in observing economic changes [3] Industry Insights - MXD6, a high-performance engineering plastic, is experiencing high demand for lightweight and barrier packaging materials, indicating a broad market potential [4] - The company has been a leader in ion exchange and adsorption resin for nearly 30 years, focusing on R&D, production, and sales [5] - The company has achieved the top market share in the ADAS integrated machine market in 2024, with expectations for hardware shipments to exceed ten million units in 2025 [8] Company Performance - JD Group reported a 1Q2025 revenue of 301.08 billion yuan, a year-on-year increase of 15.8%, and a GAAP net profit of 10.89 billion yuan, up 52.7% year-on-year [9] - The company also reported a Non-GAAP net profit of 12.76 billion yuan, reflecting a 43.4% year-on-year growth [9]

Core Viewpoint - The article discusses various industry reports highlighting trends and forecasts in sectors such as steel, copper, chemicals, oil and gas, coal, automotive, and semiconductor industries, indicating potential investment opportunities and market dynamics. Steel Industry - The Ministry of Industry and Information Technology revised the "Steel Industry Normative Conditions," which may lead to a recovery in steel sector profitability to historical average levels, positively impacting steel stock price-to-book ratios [4]. Copper Industry - Domestic scrap copper production in April decreased by 22.5% year-on-year and 20% month-on-month, while copper inventories fell to low levels. High operating rates in cable enterprises and expected policy stimulus may support copper price increases [5]. Chemical Industry - The article emphasizes the ongoing trend of domestic substitution in the chemical sector, particularly for MXD6, ion exchange resins, and semiconductor materials, driven by technological advancements and market demand [6]. Oil and Gas Industry - Geopolitical risks are rising, and a recent trade agreement between the UK and the US has boosted confidence in oil demand, leading to a rebound in oil prices, with Brent and WTI crude oil prices increasing by 4.0% and 4.6% respectively [7]. Coal Industry - As of May 9, coal inventories at ports reached 33.051 million tons, up 6.5% week-on-week and 42.15% year-on-year, indicating high inventory pressure. Consequently, coal prices have started to decline, reflecting weak downstream demand [8]. Automotive Industry - The automotive sector's overall performance met expectations, with a focus on the potential for increased domestic sales in 2025 driven by trade-in programs and advancements in smart driving technology [9]. Semiconductor Industry - Semiconductor company SMIC faced production issues in Q1 2025, leading to lower-than-expected revenue and guidance for Q2, despite a year-on-year revenue increase of 28.4% to $2.247 billion [9].

Core Viewpoint - The article discusses the impact of U.S. tariffs on Chinese products and highlights the growing opportunities for domestic new materials in China, particularly in the context of MXD6, ion exchange resins, and semiconductor materials [3][4][5][6]. Group 1: Tariffs and Market Dynamics - The U.S. has confirmed that additional tariffs on Chinese products have reached 145%, which is expected to increase the prices of certain American new materials and tighten the supply of imports [3]. - Domestic new materials are gaining favor among downstream customers due to their higher cost-performance ratio and timely technical responses [3]. Group 2: MXD6 Market Potential - MXD6, a high-performance engineering plastic, is projected to grow from $410 million in 2024 to $760 million by 2033, with a CAGR of approximately 7.1% [4]. - Domestic companies like Sinochem International and Qicai Chemical are making significant advancements in MXD6 production, with Qicai Chemical's 5000 tons/year MXD6 project entering trial production in September 2024 [4]. Group 3: Ion Exchange Resins Market - The high-end ion exchange resin market is dominated by multinational companies such as Dow Chemical and Lanxess, while domestic firms like Blue Sky Technology and Zhengguang Co. are making strides in achieving competitive performance [5]. - These domestic companies are gradually replacing imports in the domestic market and expanding their brand influence internationally [5]. Group 4: Semiconductor Materials Demand - The global semiconductor sales are expected to improve in 2024, reaching approximately $630.5 billion, a year-on-year increase of about 19.7% [6]. - The steady growth in the semiconductor market is anticipated to drive an increase in demand for semiconductor materials [6].