Company Overview - Tianan New Materials Co., Ltd. is located in Nanzhuang Town, Chancheng District, Foshan City, Guangdong Province, established on May 15, 2000, and listed on September 6, 2017. The company specializes in the research, design, production, and sales of polymer composite decorative materials and building ceramics [1]. Stock Performance - As of September 23, Tianan New Materials' stock price decreased by 2.27%, trading at 9.90 yuan per share, with a total market capitalization of 3.018 billion yuan. The stock has increased by 56.62% year-to-date, but has seen a decline of 1.59% over the last five trading days and 9.01% over the last 20 days [1]. - The company has appeared on the "Dragon and Tiger List" three times this year, with the most recent appearance on July 25, where it recorded a net purchase of 19.7714 million yuan [1]. Financial Performance - For the first half of 2025, Tianan New Materials reported a revenue of 1.444 billion yuan, representing a year-on-year growth of 3.97%. The net profit attributable to shareholders was 62.169 million yuan, reflecting a year-on-year increase of 16.59% [2]. - The company has distributed a total of 144 million yuan in dividends since its A-share listing, with 66.8856 million yuan distributed over the past three years [3]. Shareholder Information - As of June 30, 2025, the number of shareholders increased to 16,800, up by 22.00%. The average number of circulating shares per person decreased by 18.03% to 17,014 shares [2]. - Among the top ten circulating shareholders, Huaxia Xingyang One-Year Holding Mixed Fund (009010) holds 2.4393 million shares, a decrease of 450,400 shares compared to the previous period [3].

Group 1 - Tianan New Materials experienced a decline of 5.08% on August 28, with a stock price of 10.47 CNY per share, a trading volume of 1.11 billion CNY, a turnover rate of 3.56%, and a total market capitalization of 3.192 billion CNY [1] - The company, Guangdong Tianan New Materials Co., Ltd., was established on May 15, 2000, and went public on September 6, 2017. Its main business involves the research, design, production, and sales of polymer composite decorative materials and building ceramics [1] Group 2 - Among the top ten circulating shareholders of Tianan New Materials, a fund under Huaxia Fund holds a significant position. The Huaxia Xingyang One-Year Holding Mixed Fund (009010) reduced its holdings by 450,400 shares in the second quarter, now holding 2.4393 million shares, which accounts for 0.85% of the circulating shares. The estimated floating loss today is approximately 1.366 million CNY [2] - The Huaxia Xingyang One-Year Holding Mixed Fund was established on March 18, 2020, with a current scale of 1.211 billion CNY. Year-to-date returns are 3.44%, ranking 6962 out of 8190 in its category; the one-year return is 21.83%, ranking 5339 out of 7966; and since inception, it has a loss of 16.95% [2]

Group 1 - The core stock price of Tianan New Materials on August 26 closed at 10.88 yuan, down 0.04 yuan from the previous trading day, with an intraday fluctuation of 3.94% and a transaction amount of 140 million yuan [1] - The company specializes in the research and production of polymer composite decorative materials, which are applied in building decoration and home manufacturing [1] - Tianan New Materials is categorized under the chemical products sector and possesses attributes of "specialized, refined, distinctive, and innovative" as well as "prefabricated construction," with its registered location in Guangdong Province [1] Group 2 - On August 25, a total of 15 fund companies participated in a research activity on Tianan New Materials, ranking second among the companies surveyed that day [1] - The latest disclosed data shows that the company's total market capitalization is 3.317 billion yuan, and the circulating market capitalization is 3.119 billion yuan [1] - In terms of capital flow, on August 26, the net outflow of main funds was 5.6344 million yuan, with a cumulative net outflow of 34.165 million yuan over the past five trading days [1] - The turnover rate on that day was 4.42%, indicating active market trading [1]

Core Viewpoint - The company has solidified its two main businesses: polymer composite surface materials and architectural ceramics, achieving significant revenue growth in the polymer composite segment while maintaining sales growth in the architectural ceramics sector despite industry challenges [1][2]. Group 1: Financial Performance - In the first half of 2025, the company reported a revenue of 1.444 billion yuan, a year-on-year increase of 3.97% [1]. - The net profit attributable to shareholders reached 62.169 million yuan, up 16.59% year-on-year, while the net profit after deducting non-recurring gains and losses was 60.097 million yuan, an increase of 20.04% [1]. - The company invested 54.088 million yuan in R&D, reflecting a 19.02% increase compared to the previous year, with an overall gross margin of 23.54% [1]. Group 2: Market Strategy and Sales Growth - The company has expanded its distribution channels and deepened market penetration, particularly in county and town markets, to increase market share in the architectural ceramics sector [2]. - The company has leveraged new media platforms such as short videos and social media to enhance brand influence while continuously innovating products to meet diverse customer needs [2]. - In the automotive interior materials segment, the company achieved a revenue of 306 million yuan, a year-on-year growth of 35.96%, by focusing on high-value orders and optimizing product offerings [3]. Group 3: New Business Ventures - The company is exploring new opportunities in the electronic skin sector, leveraging its expertise in surface materials to develop technologies suitable for robotics [4]. - Collaborations with research institutions and leading sensor and robotics manufacturers are underway to explore the development of electronic skin technology [4]. - The company is in the exploratory phase for electronic skin technology, with no current products affecting its financial performance [4]. Group 4: International Expansion - The company is actively pursuing overseas markets, particularly in economically developed regions with potential for industrialization in home building materials [5]. - The subsidiary, Eagle Brand, has opened showrooms in Melbourne and Sydney as part of the international strategy, enhancing brand visibility abroad [5]. - The company aims to transition from a regional leader to a global home furnishing brand through continued international cooperation [5].

Core Viewpoint - The company held a half-year performance briefing on August 18, 2025, discussing its stable growth and strategic initiatives in response to market conditions and consumer demands [1]. Group 1: Company Performance - The company reported significant revenue growth in its high polymer composite decorative materials and building ceramics sectors, with building ceramics sales exceeding 20.3 million square meters in the first half of 2025, a year-on-year increase of 6% [2][3]. - The overall gross margin for the company was 23.54%, with net profit attributable to shareholders showing substantial improvement [2]. Group 2: Market Strategy - The company is responding to government policies promoting urban renewal and consumer demand for home improvement by offering personalized services and enhancing brand influence [2]. - The company is actively expanding its overseas market presence, particularly in developed regions with potential for growth in the home building materials sector, and has opened showrooms in Australia [6]. Group 3: Product Development - The company is leveraging advancements in artificial intelligence and robotics to explore new applications for its materials, particularly in the development of electronic skin technology [4]. - The building fireproof decorative panel segment saw a revenue increase of 23.33% in the first half of 2025, attributed to improved operational management and quality control [7]. Group 4: Competitive Positioning - Despite a downturn in the building ceramics industry, the company achieved sales growth and increased market share through strategic channel expansion and innovative marketing efforts [8][9]. - The company has implemented a differentiated competition strategy, focusing on supply chain efficiency and cost control, resulting in a 1.55 percentage point increase in gross margin for the building ceramics segment compared to the previous year [9].

Group 1 - The core viewpoint of the report is that Dongwu Securities has given Tianan New Materials (603725.SH) an "Accumulate" rating based on its performance and growth prospects [2] - The company reported a year-on-year improvement in overall gross margin, although the period expense ratio has increased [2] - The sales volume of building ceramics has shown growth against the trend, indicating stable progress in differentiated competition [2] Group 2 - The automotive interior business is experiencing rapid growth, with improvements in both quantity and quality in the polymer composite surface materials segment [2] - The report highlights potential risks including fluctuations in raw material and energy prices, intensified market competition, and accounts receivable collection risks [2]

Investment Rating - The investment rating for Tianan New Materials is "Accumulate" (maintained) [1] Core Views - The company has demonstrated stable performance while actively seeking changes and expanding into new sectors [7] - The company is focusing on the dual-track strategy of "ceramics + home furnishing" and is enhancing its distribution channels to drive sales growth in the building ceramics segment [7] - The automotive interior materials segment is experiencing rapid growth, particularly in the new energy vehicle market, with a significant increase in revenue [7] - Overall gross margin has improved, while the expense ratio has slightly increased due to higher marketing and R&D investments [7] - The company is strategically positioning itself in the home furnishing industry and exploring opportunities in robotics and new materials for artificial intelligence applications [7] Financial Summary - For 2025, the company is projected to achieve total revenue of 3,244 million yuan, a year-on-year increase of 4.65% [1] - The net profit attributable to the parent company is expected to reach 137.02 million yuan, reflecting a year-on-year growth of 35.66% [1] - The earnings per share (EPS) for 2025 is estimated at 0.45 yuan, with a price-to-earnings (P/E) ratio of 24.03 based on the latest diluted EPS [1] - The gross margin for the first half of 2025 is projected to be 23.21%, showing an improvement from the previous year [8] - The company’s total assets are expected to grow to 3,751 million yuan by 2026, with a debt-to-asset ratio of 68.09% [8]

Core Viewpoint - The company, Guangdong Tianan New Materials Co., Ltd., reported a revenue of 1.444 billion yuan for the first half of 2025, marking a year-on-year increase of 3.97%, and a net profit attributable to shareholders of 62.169 million yuan, up 16.59% year-on-year, driven by cost control and enhanced operational efficiency [1] Group 1: Business Performance - The automotive interior decorative materials segment achieved a revenue of 306 million yuan, reflecting a significant year-on-year growth of 35.96%, supported by increased demand from the rising penetration of new energy vehicles and the emergence of domestic brands [1] - The overall gross margin for the company reached 23.54%, indicating effective management strategies despite market pressures [1] Group 2: Building Fireproof Decorative Panels - The subsidiary, Ruixin Decoration Materials, successfully transitioned management, leading to improved operational quality with a revenue increase of 23.33% year-on-year in the building fireproof decorative panels segment, and a gross margin of 33.18%, up 8.82 percentage points from the previous year [2] Group 3: Innovation and New Ventures - The company is actively exploring new opportunities in robotics and the application of new materials in artificial intelligence, leveraging its expertise in skin-like decorative materials to develop electronic skin technologies [3] - Collaborations with domestic research institutions and leading sensor and robotics manufacturers are ongoing to explore the development paths of electronic skin technology, although the company is still in the research phase without any products impacting current performance [3]

Group 1 - The company has announced the appointment of Tianjian Accounting Firm as its new auditor for the 2025 fiscal year, replacing Lixin Accounting Firm, which had provided audit services for 12 consecutive years [5][17][20] - The decision to change auditors was made to ensure the independence and objectivity of the audit process, in compliance with relevant regulations [6][17] - The board of directors unanimously approved the change in auditor during a meeting held on August 14, 2025 [20][28] Group 2 - The company reported no significant changes in its operational status during the reporting period, and there were no major events that impacted its business operations [3][4] - The company has disclosed its half-year report for 2025, which includes key financial data and operational results [25][26] - The company has proposed an increase in the expected daily related transactions for 2025, which is deemed necessary for normal business operations [67][70] Group 3 - The company has entered into guarantee contracts with banks to support its subsidiaries' loan applications, with a total guarantee amounting to RMB 5,000 million for Tianan Polymer and RMB 5,280 million for Shiwang Yingpai [97][98][101] - The guarantees are considered necessary for the subsidiaries' operational needs and are within the approved limits set by the board [103][104] - The board has confirmed that the guarantees do not harm the interests of the company or its shareholders, particularly minority shareholders [103]

Core Viewpoint - Tianan New Materials (SH 603725, closing price: 10.84 yuan) announced on August 14 that its fifth board meeting was held to review the proposal for amending the "Board Secretary Work Guidelines" [2] Financial Performance - For the year 2024, the revenue composition of Tianan New Materials is as follows: polymer composite decorative materials account for 49.1%, building ceramics account for 46.98%, whole decoration business accounts for 2.61%, and other businesses account for 1.31% [2]