Core Viewpoint - The report emphasizes the development and diversification of metal precision manufacturing technologies, highlighting the increasing demand for high-performance metal materials across various industries, including aerospace, consumer electronics, and energy sectors [14][15]. Group 1: Market Position and Services - The company provides market position certification services, including various certifications such as "first in the country" and "market share leader," aimed at enhancing corporate competitiveness [2][3]. - The company has extensive experience in market research and surveys, offering comprehensive project solutions to help businesses understand market dynamics and drive growth [3][4]. Group 2: Manufacturing Technologies - Metal precision manufacturing technologies are categorized into subtractive manufacturing, formative manufacturing, and additive manufacturing, each with distinct advantages and applications [7][10]. - The combination of metal plastic forming and subtractive manufacturing is highlighted as the most widely used technology route, offering high precision and efficiency for large-scale production of metal structural components [8][9]. Group 3: Industry Trends and Demand - The demand for high-performance metal materials, such as titanium alloys and high-performance stainless steel, is increasing due to the rising performance requirements in end products [14][15]. - Metal layered composite materials are gaining traction, expanding their applications beyond military to industrial and consumer sectors, driven by advancements in production techniques [15]. Group 4: Future Outlook - The report forecasts a significant increase in the consumption of titanium alloys in China, projecting a rise from 57,400 tons in 2018 to 150,900 tons by 2024, with a compound annual growth rate of 17.46% [14]. - The industry is expected to evolve towards platform-based development, with companies transitioning into integrated metal material solution providers to meet diverse production needs [16].

Investment Rating - The report maintains a "Recommended" rating for the company, with a target price based on the closing price on August 15, 2025 [6]. Core Insights - The company reported a revenue of 20.125 billion yuan in H1 2025, a year-on-year decrease of 0.85%, and a net profit attributable to shareholders of 303 million yuan, down 29.14% year-on-year [1]. - In Q2 2025, the company achieved a revenue of 10.736 billion yuan, a quarter-on-quarter increase of 14.36%, but a year-on-year decrease of 2.32%. The net profit for the same period was 200 million yuan, reflecting a quarter-on-quarter increase of 92.63% but a year-on-year decrease of 34.64% [1][2]. Summary by Sections Performance Overview - In H1 2025, the company completed cold-rolled product inventory production of 1.7411 million tons, a year-on-year increase of 5.79%, and sales of 1.6734 million tons, a year-on-year increase of 4.29% [3]. - The company plans to produce and sell 3.8 million tons of cold-rolled stainless steel in 2025, representing a year-on-year growth of approximately 14.7% [3]. Stainless Steel Business - In Q2 2025, the sales volume of 300 series and 400 series stainless steel was 668,000 tons and 158,000 tons, respectively, with quarter-on-quarter increases of 11.6% and 23.6% [2]. - The gross margin for the company was 5.90%, reflecting a quarter-on-quarter increase of 1.34 percentage points, although it decreased by 0.78 percentage points year-on-year [2]. Future Outlook - The company is expected to see continued growth in stainless steel sales and the gradual realization of scale effects [3]. - New projects are progressing steadily, with overseas expansion being optimized. The company has initiated several projects, including a high-quality wide stainless steel plate project and a precision stainless steel strip project [3][4]. - The diversification strategy is being implemented, with improvements in the management of the metal layered composite materials project and advancements in other new material projects [4]. Financial Projections - The company forecasts net profits attributable to shareholders of 808 million yuan, 892 million yuan, and 974 million yuan for 2025, 2026, and 2027, respectively, with corresponding PE ratios of 8, 7, and 7 times [5][6].

Core Viewpoint - Jiangsu Kangrui New Materials Technology Co., Ltd. (Kangrui New Materials) is undergoing a listing review on the Shenzhen Stock Exchange, aiming to raise approximately 1.10493 billion yuan for its operations and expansion in the precision metal materials sector [1]. Company Overview - Kangrui New Materials has over 20 years of experience in the precision metal materials field, focusing on the research, production, and sales of high-precision and high-performance metal materials [1]. - The company has developed a comprehensive technology system centered on titanium alloy smelting, precision rolling, composite rolling, drawing, and heat treatment, and is also involved in metal powder manufacturing, powder metallurgy, and metal 3D printing [1]. Product Portfolio - The product range includes metal layered composite materials, precision metal profiles, polished rods, fine metal wires, and precision metal tubes, covering various materials such as titanium-aluminum composites, titanium alloys, stainless steel, and aluminum alloys [1]. - The primary application areas for Kangrui's products are consumer electronics, industrial equipment, automotive parts, and daily consumer goods, with a significant focus on the consumer electronics sector [1]. Clientele and Partnerships - Major clients in the consumer electronics sector include Company X and Company Y, with stable partnerships established with large manufacturers such as Foxconn, BYD, Changying Precision, Linyi Zhizao, Lens Technology, and Lianfeng Group [2]. Fundraising and Investment Plans - The company plans to allocate the raised funds to several projects, including: - A project for producing 5,000 tons of titanium alloy materials with an investment of 59.81 million yuan - A project for producing 4,000 tons of metal layered composite materials with an investment of 21.64 million yuan - A research and development center with an investment of 9.04 million yuan - Supplementing working capital with 20 million yuan [2]. Financial Performance - Projected revenues for 2022, 2023, and 2024 are approximately 1.053 billion yuan, 2.486 billion yuan, and 2.998 billion yuan, respectively, with net profits of about 47.56 million yuan, 229 million yuan, and 404 million yuan for the same years [2]. - Total assets for 2024 are projected to be approximately 2.670 billion yuan, with a significant increase in equity attributable to the parent company from 375.61 million yuan in 2022 to an estimated 1.328 billion yuan in 2024 [3]. - The company’s debt-to-asset ratio is expected to decrease from 43.06% in 2022 to 30.51% in 2024, indicating improved financial stability [3].