Core Viewpoint - The company reported a slight increase in revenue for the first half of 2025, but a decline in net profit, indicating mixed performance amid fluctuating raw material prices and market conditions [1][2]. Financial Performance - In the first half of 2025, the company achieved revenue of 1.722 billion yuan (YoY +2.1%) and a net profit attributable to shareholders of 127 million yuan (YoY -8.4%) [1]. - For Q2 2025, revenue was 860 million yuan (YoY +0.8%, QoQ -0.3%), with a net profit of 64.52 million yuan (YoY +12.1%, QoQ +3.1%) [1]. - The gross margin for high-performance rubber additives decreased slightly to 18.17%, while the overall gross margin for the company fell to 18.74% [2]. Product and Market Insights - Sales of rubber additives increased, with high-performance rubber additives revenue rising by 6% to 973 million yuan, driven by growing demand in the tire sector [2]. - The price of liquid sulfur has risen from approximately 1,600 yuan at the beginning of the year to 2,170 yuan by the end of June, impacting profitability [2]. - The company holds over 60% market share in the CTP product segment, but profitability has been affected by rising costs and slight price declines [2]. Future Growth and Investments - As of mid-2025, the company has ongoing construction projects valued at approximately 384 million yuan, primarily focused on a new high-performance rubber additives project [3]. - The acquisition of Bomi Technology is progressing, which will extend the company's main business into the electronic chemicals sector, enhancing market competitiveness [3]. - Profit forecasts for 2025-2027 are maintained, with expected net profits of approximately 249 million, 305 million, and 353 million yuan, corresponding to PE ratios of about 27, 22, and 19 times [3].

Investment Rating - The report maintains an "Outperform" rating for the company [1] Core Insights - The company achieved a revenue of 1.72 billion yuan in H1 2025, reflecting a year-on-year growth of 2.1%, while the net profit attributable to shareholders was 127 million yuan, down 8.4% year-on-year [8] - The sales volume of rubber additives has steadily increased, with high-performance rubber additives revenue rising by 6% to 973 million yuan, benefiting from overall demand growth in the tire sector [8] - The company is progressing with the acquisition of Bomi Technology, which is expected to enhance its competitiveness in the electronic chemicals sector [8] Financial Summary - Total revenue projections for 2025 are estimated at 3.81 billion yuan, with a year-on-year growth rate of 11.1% [7] - The projected net profit for 2025 is approximately 249 million yuan, representing a year-on-year increase of 29.7% [7] - The company's gross margin is expected to stabilize around 18.7% for 2025, with a return on equity (ROE) projected at 6.9% [7]