Core Viewpoint - Jiemai Technology (002859) has announced an employee stock ownership plan (ESOP) for 2025, allowing up to 81 employees to participate at a price of 13.1 yuan per share, with a total of up to 3.66 million shares available, representing 0.85% of the company's total equity [1][2]. Group 1: Employee Stock Ownership Plan - The ESOP will be funded by shares repurchased by the company, and the plan requires approval from the shareholders' meeting [1]. - The plan has a duration of 36 months, and the total shares held under all effective employee stock ownership plans cannot exceed 10% of the company's total equity [1]. - Individual employees can hold a maximum of 1% of the company's total equity through this plan [1]. Group 2: Performance Assessment - The ESOP includes performance assessments at both the company and individual levels, with company performance targets set for 2025 and 2026 [2]. - For 2025, the revenue growth target is set at no less than 8% compared to 2024, while the net profit growth target is set at no less than 20% [2]. Group 3: Company Overview and Market Context - Jiemai Technology specializes in the research, production, and sales of electronic packaging materials and electronic-grade film materials, with products widely used in integrated circuits, semiconductor, and new energy sectors [2]. - The company is benefiting from the accelerated global digitalization process and policies such as "new infrastructure" and "old-for-new" electronic product exchanges, which are driving demand in various markets including 5G, cloud computing, and electric vehicles [2]. Group 4: Financial Performance - In the first half of 2025, Jiemai Technology reported total revenue of 962 million yuan, a year-on-year increase of 14.67%, while net profit attributable to shareholders decreased by 18.78% to 98.49 million yuan [3]. - The revenue from electronic-grade film materials reached 116 million yuan, marking a significant year-on-year growth of 61.29% [3].

Investment Rating - The report maintains an "Outperform the Market" rating for the company [6]. Core Views - The company has seen a significant increase in revenue from new products, with a 14.68% year-over-year growth in revenue for the first half of 2025, reaching 9.62 billion yuan, although net profit decreased by 18.78% [1]. - The demand for electronic components, particularly MLCC, is recovering due to AI infrastructure investments, which is expected to drive growth in the company's new business segments such as release films and composite current collectors [1][2]. - The company is actively expanding its production capacity overseas, with ongoing upgrades and new lines being established to meet high demand from semiconductor clients [2][3]. Summary by Sections Revenue and Profitability - In 1H25, the company achieved a revenue of 9.62 billion yuan, with a net profit of 0.98 billion yuan, and a gross margin of 33.40% [1]. - The second quarter of 2025 saw a revenue of 5.48 billion yuan, reflecting a 15.19% year-over-year increase and a 32.41% quarter-over-quarter increase [1]. Business Segments - The electronic packaging materials segment generated 8.08 billion yuan in revenue in 1H25, a 9.97% increase year-over-year, with a gross margin of 37.85% [2]. - The release film segment reported a revenue of 1.16 billion yuan in 1H25, marking a 61.29% year-over-year increase, despite still operating at a loss in 2Q25 [3]. Future Projections - The company forecasts net profits of 2.58 billion yuan, 3.39 billion yuan, and 4.29 billion yuan for 2025, 2026, and 2027 respectively, indicating growth rates of 27.5%, 31.6%, and 26.5% [4]. - Revenue projections for the years 2025 to 2027 are estimated at 22.35 billion yuan, 28.36 billion yuan, and 32.73 billion yuan, with respective growth rates of 23.0%, 26.9%, and 15.4% [5].

Investment Rating - The report maintains a "Buy" rating for the company [8]. Core Insights - The company reported a revenue of 1.82 billion yuan for 2024, representing a year-on-year increase of 15.6%. However, the net profit attributable to shareholders decreased by 20.9% to 200 million yuan, and the net profit after deducting non-recurring items also fell by 21.9% to 200 million yuan. For Q1 2025, the revenue was 410 million yuan, up 14.0% year-on-year but down 12.9% quarter-on-quarter, with a net profit of 30 million yuan, down 36.7% year-on-year [2][5]. Financial Performance Summary - In 2024, the company's electronic packaging materials revenue reached 1.57 billion yuan, a year-on-year growth of 13.1%. The electronic film materials segment generated 180 million yuan, growing by 35.4% year-on-year. The company has also made significant investments in R&D, with expenses increasing by 85.5% year-on-year, which contributed to the decline in net profit [10][11]. - The company plans to distribute a cash dividend of 1.2 yuan per 10 shares, which accounts for 50.6% of the net profit attributable to shareholders for 2024 [5][10]. Business Development - The company is a leader in the thin carrier tape sector, focusing on integrated production and strong R&D capabilities. It has established a comprehensive supply chain advantage by producing raw materials in-house and has strengthened its customer base, particularly with key clients like Samsung and Murata [10]. - The company has expanded its product offerings into the new energy battery sector through the acquisition of Flexible Technology, targeting applications in consumer lithium batteries, power batteries, and energy storage batteries [10][11]. Future Outlook - The company is expected to benefit from the release of downstream demand and supportive national policies, with projected net profits of 240 million yuan, 270 million yuan, and 340 million yuan for 2025, 2026, and 2027, respectively [10][11].

Group 1: Financial Performance - The cash flow from financing activities decreased by ¥944,546,929.50, with debt financing-related cash flow at ¥913,865,822.7, while the cash paid for debt repayment was ¥873,377,036.05, indicating a discrepancy due to interest payments [3] - The first quarter revenue for electronic-grade film materials was approximately ¥50 million, with a gross margin of about 12% [5] - The company’s interest expenses for the first quarter reached ¥15 million, with an expected total exceeding ¥60 million for the year, which is significant compared to the projected annual profit of just over ¥200 million [6] Group 2: Production and Capacity - The planned annual production capacity for MLCC release film is 1.2 billion square meters, with 400 million square meters already in production, and an expected gross margin of 35% upon full capacity [6] - The production capacity for self-produced base film is planned at 800 million square meters, with 600 million square meters already in production [6] - The company is currently operating at full capacity for paper carrier tape, with expectations to maintain this status in the second quarter [6] Group 3: Market and Strategic Initiatives - The actual export ratio is approximately 10%, with existing factories in Malaysia and the Philippines [7] - The company has a clear operational target for the year, which has been broken down into specific goals for each business unit [7] - There are considerations for transferring shares to external strategic investors to reduce debt levels and improve cash flow [5] Group 4: Product Development and Applications - Composite aluminum and copper foils produced by the subsidiary can be applied in various fields, including consumer lithium batteries and energy storage [3] - The company has successfully validated mid-range release films with all customers and is in the process of small-scale supply for high-end release films [5] - The proportion of self-produced base films in release film products is continuously increasing [5]

Core Viewpoint - Zhejiang Jiemai Electronic Technology Co., Ltd. (Jiemai Technology) reported a revenue of 1.817 billion yuan for 2024, marking a year-on-year increase of 15.57%, with a net profit of 202 million yuan [1] Group 1: Financial Performance - The company achieved a revenue of 1.817 billion yuan, reflecting a growth of 15.57% year-on-year [1] - The net profit for the period was 202 million yuan [1] - R&D investment reached 171 million yuan, a significant increase of 85.5% year-on-year, primarily due to the development of high-end polyester films and other new materials [1] Group 2: Product Development and Market Expansion - Jiemai Technology has initiated the mass production of high-end release films, contributing 176 million yuan to revenue, which is a 35.38% increase [1] - The company has successfully started stable bulk supply of MLCC release films to major clients and has entered the bulk supply phase for Korean and Japanese clients [1] - The electronic packaging materials segment generated 1.571 billion yuan in revenue, up 13.09% year-on-year, with a focus on optimizing paper carrier tape products to meet the miniaturization trend in electronic components [2] Group 3: Strategic Investments - Jiemai Technology has extended its business into the field of new energy battery materials by acquiring control of Zhejiang Rouzhen Technology Co., Ltd. [3] - The company plans to invest 30 million yuan in Rouzhen Technology, acquiring a 5% stake, with an estimated valuation of approximately 600 million yuan [3] - Rouzhen Technology specializes in polymer composite metal membrane materials, which can replace traditional aluminum and copper foils in lithium-ion batteries, enhancing energy density and safety [3]