Investment Rating - The report maintains a "Strong Buy" rating for Longbai Group [2][4]. Core Views - The price of titanium dioxide is at a bottom level, and there is potential for a rebound as demand gradually recovers. The company has recently increased prices for domestic and international customers [3][4]. - Longbai Group is strengthening its upstream mineral resource layout, enhancing its integrated industrial chain advantages. The company is actively developing key projects to increase its titanium concentrate and iron concentrate production capacity [4][6]. Financial Performance Summary - In the first half of 2025, Longbai Group achieved revenue of 13.33 billion yuan, a year-on-year decrease of 3.34%, and a net profit of 1.39 billion yuan, down 19.53% year-on-year. Despite a 2.08% increase in titanium dioxide sales volume to 612,000 tons, revenue from titanium dioxide fell by 7.68% to 8.66 billion yuan due to price declines [3]. - Revenue from other products such as sponge titanium, iron-based products, zirconium products, and new energy materials showed growth, with increases of 12.96%, 10.61%, 18.95%, and 27.23% respectively [3]. Production Capacity and Resource Development - Longbai Group has a titanium dioxide production capacity of 1.51 million tons and sponge titanium capacity of 80,000 tons, ranking among the top globally. The company is working on projects to enhance its titanium concentrate and iron concentrate production capacities significantly [4][6]. Profit Forecast and Valuation - The profit forecast for Longbai Group remains unchanged for 2025-2027, with expected net profits of 2.78 billion yuan, 3.10 billion yuan, and 3.64 billion yuan respectively. The corresponding EPS for these years is projected to be 1.17 yuan, 1.30 yuan, and 1.53 yuan, with current P/E ratios of 15, 13, and 11 times [4][5].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company achieved a revenue of 1.265 billion, a slight increase of 0.1% year-on-year, and a net profit attributable to shareholders of 24 million, which represents a significant growth of 73.0% year-on-year [2][4]. - The company is expected to see improvements in its new materials business and the ramp-up of its UTG cover glass production, with projected net profits of 190 million and 260 million for 2025 and 2026, respectively, corresponding to PE ratios of 53 and 39 [10]. Summary by Sections Financial Performance - In Q1 2025, the company reported a revenue of 1.265 billion, with a year-on-year growth of 0.1%. The net profit attributable to shareholders was 24 million, marking a 73.0% increase year-on-year. The non-recurring net profit was 12 million, recovering from a loss of 31 million in the same period last year [2][4][10]. - The gross margin for the period was 17.7%, an increase of 3.4 percentage points year-on-year, indicating a notable improvement in profitability [10]. Business Developments - The company is focusing on innovation and R&D, supported by national-level innovation platforms. It has made significant advancements in various new technologies, including UTG iteration technology and high-purity synthetic silica [10]. - The zirconium products continue to play a crucial role, with a 24.4% increase in sales volume year-on-year. The introduction of nano-zirconia into the mainstream customer base for new energy cathode materials saw a remarkable growth of 232.89% in sales volume [10]. Market Outlook - The company anticipates a gradual increase in its new materials product categories, despite ongoing pressure in consumer electronics demand. The traditional display materials business is expected to improve, contributing positively to profits [10]. - The company has established itself as a core supplier for major clients in the flexible display market, particularly with its UTG technology, which is being utilized in high-end automotive applications [10].

Core Viewpoint - Kaisheng Technology (600552.SH) reported a significant increase in revenue and net profit for Q1 2025, driven by reduced losses in traditional display materials and successful market acceptance of new products [1] Group 1: Financial Performance - The company achieved a revenue of 1.265 billion yuan in Q1 2025 [1] - The net profit attributable to shareholders reached 23.8475 million yuan, marking a year-on-year increase of 73.01% [1] Group 2: Business Segments - Kaisheng Technology operates primarily in two segments: display materials and application materials [1] - In the display materials sector, the company has established a comprehensive industrial chain from glass substrates to integrated modules, enhancing cost control and quality consistency [1] Group 3: Application Materials - The application materials business focuses on zirconium, silicon, and titanium, transitioning from traditional ceramics to high-value electronic applications such as semiconductors and biomedical materials [2] - The company has developed a "large industry" platform for new materials, leveraging its leading position in the electric melting zirconia industry [2] Group 4: Innovation and R&D - Innovation is a core driver for the company's growth, with significant investments in R&D through national-level innovation platforms [2] - Kaisheng Technology has obtained a total of 582 authorized patents, including 167 invention patents [2] Group 5: Market Presence and Talent - The company has established a strong marketing network serving both domestic and international clients, including major brands like Amazon and Samsung [3] - Kaisheng Technology boasts a robust R&D team of 724 members and has received national recognition for its engineering teams [3] Group 6: Future Outlook - For 2025, the company aims to enhance operational quality and integrate technology with industry innovation, focusing on high-value product expansion in electronic information and semiconductor markets [3]