Investment Rating - The report initiates coverage with a "Buy" rating for the company, indicating a potential stock price increase of 5% to 15% over the next six months [12]. Core Insights - The company is advancing in the production of superconductive carbon black, with products currently being tested across various downstream industries, suggesting a broadening of application directions [1][2]. - Amidst the backdrop of US-China trade tensions, the domestic substitution process for superconductive carbon black is expected to accelerate, as the country remains heavily reliant on imports for specialty carbon blacks [2]. - The competitive landscape is improving, with a forecasted recovery in the carbon black industry due to stable downstream demand and the potential exit of low-end producers, enhancing market concentration [3]. Summary by Sections Company Overview - The company has a production capacity of 30,000 tons per year for superconductive carbon black and has launched 4-6 product variants, with several more in development [2]. Market Dynamics - China is the largest carbon black producer, with an estimated production of 5.608 million tons in 2024, but still faces a high import dependency for specialty carbon blacks [2]. - The carbon black industry in China has a low concentration level, with the top five companies holding only 41% of the market share, indicating significant room for consolidation [3]. Financial Projections - The company is projected to achieve net profits of 205 million, 260 million, and 303 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 43.71X, 34.38X, and 29.54X [3][4]. - Revenue is expected to grow from 10.132 billion yuan in 2024 to 10.955 billion yuan in 2027, reflecting a compound annual growth rate [4]. Stock Performance - The company's stock closed at 12.16 yuan, with a 12-month price range between 5.25 and 12.89 yuan, and a total market capitalization of approximately 8.942 billion yuan [5].

Core Viewpoint - The company has developed various models of superconductive carbon black products that can be used in fast-charging and solid-state battery applications [1] Group 1 - The superconductive carbon black products are currently in the testing phase, with the 6010 product still undergoing sample testing [1]

Group 1 - The company held an online performance briefing for the 2024 fiscal year on May 16, 2025, focusing on performance, new product development, and market conditions [1] - In Q1 2025, the company reported a loss of 0.048 yuan per share, while competitors like Yongdong Co. and Longxing Technology achieved profitability, attributing the loss to raw material price fluctuations and a lag in product pricing adjustments [1] - The company's inventory increased by 212 million yuan and accounts receivable rose by 73.62 million yuan in Q1 2025, primarily due to a production and sales rate below 100%, leading to higher product stock [1] Group 2 - The first phase of the carbon nanotube powder project has been completed, with products mainly sold to lithium battery companies and conductive paste manufacturers, and the company is actively pursuing customer collaborations amid industry supply-demand changes [2] - The company has maintained close cooperation with leading domestic enterprises in the tire sector, including joint development of new products [2] - The company is advancing new product research and industrialization despite performance pressures, indicating a positive future development outlook [2]