Investment Rating - The investment rating for the company is "Outperform" (maintained) [2] Core Views - The company achieved a revenue of 133 million yuan in H1 2025, representing a year-on-year increase of 22.42%, while the net profit attributable to the parent company was 2.15 million yuan, a decrease of 85.85% year-on-year. The company maintains its profit forecast for 2025-2027, expecting net profits of 41 million yuan, 54 million yuan, and 72 million yuan respectively [2][4] - The company is making progress in the research and development of new products, specifically Low-α ray spherical alumina, and is gradually releasing production capacity from newly established production lines, which is expected to drive future performance growth [2][4] Financial Summary - In H1 2025, the company reported a gross margin of 13.21%, down 12.87 percentage points year-on-year, primarily due to increased depreciation costs as investment projects transitioned to fixed assets [4] - The company’s total market capitalization is approximately 4.094 billion yuan, with a circulating market capitalization of 3.286 billion yuan [2] - The company’s earnings per share (EPS) for 2025-2027 are projected to be 0.39 yuan, 0.51 yuan, and 0.69 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 100.3, 76.5, and 56.5 [2][6] Industry Outlook - The global consumer electronics market is expected to reach 1.046 trillion USD in 2025, with a projected growth rate of 15.4% from 2024 to 2029. The Chinese consumer electronics market is anticipated to grow at a rate higher than the global average, reaching 268 billion USD in 2025, a year-on-year increase of 5.1% [3]

Investment Rating - The report maintains a "Recommended" investment rating for the company, indicating an expectation that the stock will outperform the market by 10% to 20% over the next six months [11]. Core Views - The semiconductor industry is experiencing a rapid technological iteration, leading to an accelerated demand for high-end spherical materials. The global semiconductor sales reached $346 billion in the first half of 2025, marking an 18.9% year-on-year increase, indicating a strong growth momentum in the industry [7]. - The company is positioned as a leading producer of electronic-grade silicon micro-powder in China, with plans to expand its production capacity for high-purity spherical products, which are expected to contribute significantly to revenue growth [8]. - The company reported a revenue of 519 million yuan in the first half of 2025, a year-on-year increase of 17.12%, and a net profit attributable to shareholders of 139 million yuan, up 18.01% year-on-year [4]. Financial Summary - The company’s revenue projections for the upcoming years are as follows: 960 million yuan in 2024, 1.192 billion yuan in 2025, 1.444 billion yuan in 2026, and 1.724 billion yuan in 2027, with year-on-year growth rates of 34.9%, 24.1%, 21.2%, and 19.4% respectively [6]. - The net profit attributable to shareholders is expected to reach 316 million yuan in 2025, 398 million yuan in 2026, and 491 million yuan in 2027, with corresponding year-on-year growth rates of 25.9%, 25.7%, and 23.4% [6]. - The company’s gross margin is projected to improve from 40.4% in 2024 to 44.0% in 2027, while the net margin is expected to increase from 26.2% to 28.5% over the same period [6]. Industry Outlook - The advanced packaging market is projected to grow at a compound annual growth rate (CAGR) of 10.7% from 2023 to 2029, while the high-end CCL market is expected to see a CAGR of 26% from 2024 to 2026, driven by advancements in AI, 5G, and high-performance computing [7]. - The company plans to raise 720 million yuan through convertible bonds to fund the construction of high-performance ultra-pure spherical silica and high thermal conductivity spherical alumina projects, addressing capacity shortages and enhancing its competitive position in the market [7].