Core Viewpoint - The company is expected to return to a growth trajectory in 2025, driven by the recovery in demand from pharmaceutical clients and the domestic supply chain for insulin and GLP-1, maintaining a "Buy" rating [1][4]. Financial Performance - In 1H25, the company reported revenue, net profit attributable to shareholders, and net profit excluding non-recurring items of 309 million, 44 million, and 35 million yuan respectively, representing year-on-year increases of 9%, 18%, and 42% [1]. - For 2Q25, the figures were 163 million, 25 million, and 21 million yuan, showing year-on-year changes of +4%, -4%, and 0% [1]. Product Development and Market Expansion - The pharmaceutical rubber stopper segment showed orderly recovery with a projected double-digit revenue growth for the full year, achieving 310 million yuan in 1H25, a 9% year-on-year increase, with a gross margin of 39.4% [1]. - The company has a robust pipeline with 1,674 and 1,528 authorized projects for film-coated and conventional stoppers respectively, indicating an 8% and 6% increase from the end of 2024 [1]. - The company is entering the domestic supply chain for insulin through cartridge components, with expected revenue contributions starting in 2025, including a significant order of 200 million piston components from Ganli Pharmaceutical [2]. Capacity Expansion Initiatives - The company is developing the "Qihang Workshop" to expand its product offerings, including insulin components and pre-filled components, with planned capacities of 1.5 billion piston caps and 10 million COC/COP components [3]. - The company is also relocating and expanding its Chongqing factory to accelerate the aluminum cap project and enhance production capacity in the western market [3]. Valuation and Target Price - The company has increased its capital expenditure assumptions, projecting net profits attributable to shareholders of 110 million, 130 million, and 160 million yuan for 2025-2027 [4]. - A price-to-earnings ratio of 60x is assigned for 2025, with a target price of 39.46 yuan, reflecting a premium due to ongoing order fulfillment and new market entries [4].

Core Viewpoint - Jiangsu Hualan Pharmaceutical New Materials Co., Ltd. plans to repurchase its shares using raised funds, self-owned funds, and self-raised funds, with a total repurchase amount between RMB 100 million and RMB 200 million, aimed at capital reduction and employee stock ownership plans [1][2][16]. Summary by Sections Repurchase Funding Sources - The total repurchase amount will not be less than RMB 100 million and not exceed RMB 200 million, with raised funds between RMB 30 million and RMB 60 million, and self-owned and self-raised funds between RMB 70 million and RMB 140 million [1][16]. Purpose of Repurchase - The repurchased shares will be used for capital reduction and employee stock ownership plans or equity incentives. Shares bought with raised funds will be canceled, while those bought with self-owned and self-raised funds may be used for employee incentives in the future [1][13][16]. Types and Methods of Shares to be Repurchased - The shares to be repurchased are ordinary shares (A shares) and will be acquired through centralized bidding [2][12]. Repurchase Timeline and Price - The repurchase period will not exceed 12 months from the date of the shareholders' meeting approval, with a maximum price of RMB 45.50 per share [2][15]. Shareholder Reduction Plans - Major shareholder Ruizhong Life Insurance Co., Ltd. plans to reduce its holdings by up to 3,789,267 shares (3.00% of total shares) between June 4, 2025, and September 3, 2025 [2][20]. Financial Impact and Company Structure - As of March 31, 2025, the total assets of the company were approximately RMB 2.51 billion, and the repurchase funds will account for about 7.98% of total assets and 8.83% of equity attributable to shareholders [17][22]. Compliance and Approval - The repurchase plan has been approved by the board and will comply with relevant laws and regulations, ensuring it does not harm the interests of the company or its shareholders [26][27].

Group 1: Company Overview and Financial Performance - The company plans to distribute a cash dividend of 2 CNY per 10 shares, totaling 25,261,788.40 CNY, based on a total share capital of 126,308,942 shares [1] - The capital reserve will be used to increase share capital by 3 shares for every 10 shares held, resulting in an increase of 37,892,682 shares, bringing the total to 164,201,624 shares [2] - The net profit attributable to shareholders for 2024 decreased by 57.96% due to factors such as fluctuations in downstream demand and increased depreciation expenses [3] Group 2: Profitability and Cost Structure - The overall gross margin for 2024 was 38.79%, down from 41.62% in the previous year, reflecting a decrease of 2.83% [5] - Increased costs were attributed to rising depreciation and amortization expenses due to ongoing investment projects and changes in product structure [5] Group 3: Future Plans and Market Strategy - The company aims to enhance its competitive edge by focusing on new product development, including components for pre-filled syringes and drug delivery systems [6] - A specialized team will be established to advance the drug aluminum cap project, aiming to create an integrated supply chain for rubber stoppers and aluminum caps [6] - The company is considering the possibility of mergers and acquisitions for external expansion, subject to legal and regulatory procedures [6]