Core Viewpoint - Zhejiang Zhenshi New Materials Co., Ltd. is primarily engaged in the research, production, and sales of fiber-reinforced materials in the clean energy sector, with a focus on wind power, photovoltaic power, and new energy vehicles, and is currently applying for an IPO [1] Supplier Relationships - The main raw material procurement for Zhenshi involves fiber materials, with the top five suppliers in the first half of 2025 including China Jushi (600176.SH) and International Composite (301526.SZ), with procurement amounts of 1,532.49 million yuan and 51.14 million yuan respectively, totaling over 1.58 billion yuan [1] - The total procurement amount for fiber materials in the first half of 2025 is reported to be less than 1.56 billion yuan, indicating a discrepancy [1] Financial Discrepancies - In the first half of 2025, the procurement from China Jushi accounted for 72.36% of the total, with a procurement amount of 1,532.49 million yuan, while the procurement from International Composite was 51.14 million yuan, accounting for 2.41% [2] - The procurement amounts for glass fiber from China Jushi and International Composite were reported as 1,466.80 million yuan and 51.14 million yuan respectively, totaling 1,517.94 million yuan, which also does not align with the total procurement figures [3] Related Party Transactions - Zhenshi's actual controller, Zhang Yuqiang, is also the vice chairman of China Jushi, establishing a related party relationship, with China Jushi being the largest supplier for Zhenshi, with a procurement amount of 2,037.05 million yuan in 2024, accounting for 76.53% of total procurement [4] - The disclosed related party transactions indicate that sales from China Jushi to Zhenshi and its subsidiaries exceeded 2.04 billion yuan, surpassing the procurement amounts disclosed in Zhenshi's IPO prospectus [5] Subsidiary Performance - Zhenshi's wholly-owned subsidiary, Zhenshi Huamei, reported a revenue of 1,113.76 million yuan and a net profit of 13.33 million yuan for 2024, with net assets at 1,063.53 million yuan [6] - The subsidiary's net profit for the first half of 2025 was reported at 28.30 million yuan, with net assets increasing to 1,106.90 million yuan, indicating a significant increase beyond the net profit amount [7] Governance and Compliance - The company’s board secretary is responsible for enhancing corporate governance, including reducing and regulating related party transactions, yet the procurement from China Jushi has remained high, with percentages of operating costs consistently above 50% [7]

Core Viewpoint - The news highlights the achievements and future plans of Jinshan District in Shanghai during the "14th Five-Year Plan" period, focusing on modernization, industrial transformation, and rural revitalization efforts. Economic Development - Jinshan District aims to break through a GDP of 120 billion yuan in 2024, with a per capita GDP reaching 21,500 USD [3] - The district has maintained stable economic growth while enhancing development quality and resilience [3] Industrial Transformation - Jinshan's industrial structure has improved, with total industrial output surpassing 300 billion yuan, and significant growth in high-tech sectors [4] - The service sector has seen rapid growth, with its share increasing from 31.8% to 40.9% since the end of the "13th Five-Year Plan" [4] Major Projects - The district has attracted over 20 projects with investments exceeding 1 billion yuan, including significant projects like the Shanghai Petrochemical upgrade and the Lexus new energy project [4] Technological Innovation - High-tech enterprises in Jinshan have increased by 39.5%, and specialized enterprises have surged by 375.3% [6] - The number of invention patents per ten thousand people has doubled, and international patent applications have increased nearly elevenfold [6] Rural Revitalization - Jinshan is recognized as a pioneer in rural revitalization, with agricultural productivity rising by 21%, surpassing the city average [7] - The district has established several national-level agricultural technology projects and tourism sites, enhancing its rural landscape [7] Social Welfare and Living Standards - Jinshan has improved its education system, with new vocational colleges and schools established, enhancing educational quality [8] - The district has also focused on health infrastructure, with new hospitals and public health centers being built [8] Urban Development and Governance - Jinshan has made significant strides in urban governance, focusing on safety and environmental improvements, and has been recognized for its ecological initiatives [9][10] - The district is committed to enhancing its transportation network and housing conditions, with substantial investments in public infrastructure [9] Future Outlook - Looking ahead to the "15th Five-Year Plan," Jinshan aims to deepen its transformation strategy, focusing on high-quality and sustainable development [11] - The district plans to enhance its industrial competitiveness and innovation capabilities, positioning itself as a key growth area in Shanghai and the Yangtze River Delta [11]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [5]. Core Views - The company has experienced significant revenue growth, with total operating income reaching 1.772 billion yuan in H1 2025, a year-on-year increase of 24.2%. The net profit attributable to shareholders was 261 million yuan, up 59.04% year-on-year [1]. - The recovery of the self-produced components business, which generated 692 million yuan in revenue, reflects a year-on-year growth of 27.62%. This growth is attributed to the release of delayed orders and the initiation of new equipment under the "14th Five-Year Plan" [2]. - The new materials segment has shown remarkable growth, with revenue increasing by 101.88% to 133 million yuan. The company is positioned to benefit from the increasing demand for ceramic materials in next-generation aerospace equipment [3]. Summary by Sections Revenue and Profitability - In H1 2025, the company achieved total operating revenue of 1.772 billion yuan, a 24.2% increase year-on-year. The net profit attributable to shareholders was 261 million yuan, reflecting a 59.04% increase year-on-year. The second quarter saw revenue of 1.010 billion yuan, up 30.29% year-on-year and 32.52% quarter-on-quarter [1]. Cost Management - The company reported a total expense ratio of 16.14% in the first half of 2025, a decrease of 2.85 percentage points year-on-year. The individual expense ratios for sales, management, R&D, and financial costs were 4.27%, 8.52%, 2.83%, and 0.52%, respectively, all showing a decline compared to the previous year [1]. Business Segments - The self-produced components business generated 692 million yuan in revenue, marking a 27.62% year-on-year increase. The recovery in orders is expected to drive performance, supported by the military's informationization process and new product developments [2]. - The new materials segment achieved revenue of 133 million yuan, a 101.88% increase year-on-year. The company is well-positioned to benefit from the strategic significance of ceramic materials in new-generation equipment [3]. Financial Forecast - The company is projected to achieve net profits of 502 million yuan, 722 million yuan, and 905 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 37.92, 26.36, and 21.04 [3][4].

IPO Pipeline Overview - As of August 10, there are 299 companies in the IPO pipeline, with 29 on the Shanghai Main Board, 36 on the Sci-Tech Innovation Board, 26 on the Shenzhen Main Board, 29 on the ChiNext, and 179 on the Beijing Stock Exchange [1][2]. Newly Listed Companies - From August 4 to August 10, three companies were newly listed: - Hansan (Nanjing) Technology Co., Ltd. on the ChiNext with a closing price of 82.89 CNY per share, a rise of 186.72%, and a trading volume of 2.048 billion CNY [4][5]. - Yangzhou Tianfulong Group Co., Ltd. on the Shanghai Main Board with a closing price of 56.80 CNY per share, a rise of 140.68%, and a trading volume of 1.971 billion CNY [5]. - Jiangsu Youli Intelligent Equipment Co., Ltd. on the Beijing Stock Exchange with a closing price of 83.22 CNY per share, a rise of 246.89%, and a trading volume of 732 million CNY [5]. New Counseling Record Companies - Eight companies were newly recorded for counseling from August 4 to August 10, including: - Beijing Jichuang Beifang Technology Co., Ltd., focusing on integrated circuit design [6][7]. - Yao Mazi Food Co., Ltd., specializing in seasoning products [8]. - Changde New Material Technology Co., Ltd., engaged in resource utilization and new materials [8]. - Anhui Jiren Pharmaceutical Co., Ltd., focusing on modern traditional Chinese medicine [8]. - Dongguan Yuanli Optoelectronics Co., Ltd., specializing in LCD backlight modules [8]. - Zhongdao Optoelectronic Equipment Co., Ltd., focusing on detection equipment for displays and solar cells [8]. - Tianbo Intelligent Technology (Shandong) Co., Ltd., producing various automotive sensors [9]. - Zhongxing Micro Technology Co., Ltd., providing video technology solutions based on AI and big data [9]. Approval Status of Companies - Three companies successfully passed the review process from August 4 to August 10: - Zhongcheng Zhixin Engineering Consulting Group Co., Ltd. on the Beijing Stock Exchange [10]. - Suzhou Fengbei Biotechnology Co., Ltd. on the Shanghai Main Board [10]. - Zhuhai Nante Metal Technology Co., Ltd. on the Beijing Stock Exchange [10]. - The review for Jiejia Robot Co., Ltd. was canceled [10]. Registration Approval - Two companies received registration approval from August 4 to August 10: - Guangzhou Bibete Pharmaceutical Co., Ltd., focusing on innovative drug development [16][17]. - Daming Electronics Co., Ltd., specializing in automotive electronic components [18]. Termination of Review - Only one company, Wenduoli Sunshade Materials (Dezhou) Co., Ltd., withdrew its IPO application during this period [20][21].

Market Overview - On July 28, 2025, A-shares saw a collective decline with the Shanghai Composite Index down 0.33%, Shenzhen Component down 0.22%, and ChiNext down 0.23%. The total trading volume in the Shanghai and Shenzhen markets was approximately 178.73 billion yuan, a decrease of about 57.37 billion yuan from the previous trading day [1] - Hong Kong stocks also experienced a downturn, with the Hang Seng Index falling over 1%, closing down 1.09% or 278.83 points at 25,388.35 points. The total trading volume was 281.77 billion HKD. For the week, the Hang Seng Index rose 2.27% [1] - In the US market, all three major indices closed higher on July 28, 2025, with the Dow Jones up 0.47%, the Nasdaq up 0.24%, and the S&P 500 up 0.4%. The weekly performance showed the Dow up 1.26%, Nasdaq up 1.02%, and S&P 500 up 1.46% [1] New Stock Subscription - Tianfulong, with the stock code 603406, is offering shares at a price of 23.6 yuan per share and a price-to-earnings ratio of 20.93. The company is a leading enterprise in the research, production, and sales of fiber materials, recognized as a "specialized and innovative small giant" by the Ministry of Industry and Information Technology of China [3] Agricultural Product Consumption - On July 27, 2025, ten departments, including the Ministry of Agriculture and Rural Affairs, jointly issued an implementation plan to promote agricultural product consumption. The plan includes nine measures aimed at optimizing supply, innovating circulation, and activating market demand to enhance consumption potential [4] - The plan encourages e-commerce platforms to support rural areas with unique potential and to cultivate local farmer influencers. It also promotes themed live broadcasts and short video content to enhance agricultural product visibility [5]

Investment Rating - The investment rating for the company is "Buy" with a target price set at 36.3 yuan, maintaining the rating for the next six months [6]. Core Views - The company reported a total revenue of 2.802 billion yuan for 2024, a decrease of 20.04% year-on-year, and a net profit attributable to shareholders of 195 million yuan, down 38.9% year-on-year. The decline in revenue is attributed to macroeconomic factors and a slow recovery in downstream market demand, particularly due to a significant reduction in demand from trade business clients. However, there is an expectation of a demand turning point in the future [1]. - The company’s self-produced components business generated sales revenue of 992 million yuan, accounting for 35.40% of total revenue, with a year-on-year decline of 11.77%. The company is expected to benefit from a new round of procurement cycles driven by military informationization and the release of previously delayed orders [2]. - The new materials segment achieved sales revenue of 141 million yuan, representing 5.02% of total revenue, with a year-on-year decline of 19.41%. The core products have made progress in downstream applications, and the demand for new materials is anticipated to recover as the aerospace equipment construction demand remains clear [3]. Financial Data and Valuation - The company’s financial projections indicate a recovery in net profit, with estimates of 502 million yuan, 722 million yuan, and 950 million yuan for 2025, 2026, and 2027 respectively, corresponding to P/E ratios of 33.40, 23.22, and 17.64 [4][3]. - The company’s revenue is projected to grow significantly in the coming years, with expected growth rates of 33.98%, 33.24%, and 31.69% for 2025, 2026, and 2027 respectively [4]. - The company’s total assets are projected to reach 8.238 billion yuan by 2025, with a debt-to-asset ratio of 25.82% [13].