Company Overview - Daosheng Tianhe (SH 601026) announced the convening of its 25th meeting of the second board of directors on November 6, 2025, to discuss the profit distribution plan for the first three quarters of 2025 [1] Revenue Composition - For the first half of 2025, the revenue composition of Daosheng Tianhe is as follows: - Epoxy resin for wind turbine blades: 68.55% - Resin for new composite materials: 12.42% - High-performance wind power structural adhesive: 12.01% - Adhesives for new energy vehicles and industrial applications: 5.35% - Structural core materials: 0.93% [1] Market Capitalization - As of the report date, Daosheng Tianhe has a market capitalization of 14.9 billion yuan [1]

Group 1 - The core viewpoint of the news is that Daosheng Tianhe has experienced fluctuations in stock price and trading volume, with a notable decline in stock price this year [1][2] - As of November 5, Daosheng Tianhe's stock price increased by 2.01% to 22.89 CNY per share, with a total market capitalization of 15.094 billion CNY [1] - The company has seen a net inflow of main funds amounting to 2.2073 million CNY, with significant buying and selling activities recorded [1] Group 2 - Daosheng Tianhe Materials Technology (Shanghai) Co., Ltd. was established on June 11, 2015, and is located in the China (Shanghai) Pilot Free Trade Zone [2] - The company's main business involves the research, production, and sales of new materials, with a revenue composition that includes 68.56% from epoxy resin for wind turbine blades [2] - For the period from January to September 2025, Daosheng Tianhe achieved an operating income of 2.698 billion CNY and a net profit attributable to the parent company of 153 million CNY, reflecting a year-on-year growth of 56.89% [2]

Group 1 - The core viewpoint of the news is that Daosheng Tianhe's stock has experienced a decline, with a year-to-date drop of 24.33% and a recent 5-day drop of 4.30% [1] - As of November 4, Daosheng Tianhe's stock price is 22.46 yuan per share, with a market capitalization of 14.81 billion yuan [1] - The company has seen a net outflow of main funds amounting to 14.60 million yuan, with significant selling pressure from large orders [1] Group 2 - Daosheng Tianhe Materials Technology (Shanghai) Co., Ltd. was established on June 11, 2015, and is located in the China (Shanghai) Pilot Free Trade Zone [2] - The company's main business involves the research, production, and sales of new materials, with a revenue composition primarily from epoxy resin for wind turbine blades (68.56%) [2] - For the period from January to September 2025, Daosheng Tianhe achieved operating revenue of 2.698 billion yuan and a net profit attributable to the parent company of 153 million yuan, reflecting a year-on-year growth of 56.89% [2]

Core Viewpoint - Daosheng Tianhe's stock price has shown volatility, with a year-to-date decline of 19.27% but a recent uptick of 1.27% over the last five trading days, indicating potential market interest despite recent challenges [1][2]. Financial Performance - For the period from January to September 2025, Daosheng Tianhe reported a revenue of 2.698 billion yuan and a net profit attributable to shareholders of 153 million yuan, reflecting a year-on-year growth of 56.89% [2]. Stock Market Activity - As of October 29, Daosheng Tianhe's stock was trading at 23.96 yuan per share, with a market capitalization of 15.799 billion yuan. The stock experienced a trading volume of 413 million yuan and a turnover rate of 16.42% [1]. - The company has appeared on the "龙虎榜" (Dragon and Tiger List) four times this year, with the most recent appearance on October 28, where it recorded a net buy of -12.9573 million yuan [1]. Shareholder Information - As of October 17, Daosheng Tianhe had 151,200 shareholders, a significant increase of 840,111.11% compared to the previous period, with an average of 708 circulating shares per shareholder [2]. Business Overview - Daosheng Tianhe, established on June 11, 2015, specializes in the research, production, and sales of new materials, with a primary revenue composition that includes 68.56% from epoxy resin for wind turbine blades [2]. - The company operates within the basic chemical industry, specifically in plastics and synthetic resins, and is associated with several concept sectors including new materials and hydrogen energy [2].

Group 1 - The core point of the news is that Daosheng Tianhe experienced a significant stock price increase of 396.32% on October 17, with a trading volume of 2.301 billion yuan [1] - On the same day, Daosheng Tianhe had a financing buy-in amount of 86.96 million yuan and a net financing purchase of 67.35 million yuan, with a total financing and securities balance of 67.35 million yuan [1] - The company is primarily engaged in the research, production, and sales of new materials, with its main revenue sources being epoxy resin for wind turbine blades (68.56%), resin for new composite materials (12.48%), and high-performance structural adhesives for wind energy (12.01%) [1] Group 2 - As of October 17, Daosheng Tianhe had 151,200 shareholders, an increase of 840,111.11% compared to the previous period, with an average of 708 circulating shares per person [2] - For the period from January to September 2025, Daosheng Tianhe achieved an operating income of 2.698 billion yuan and a net profit attributable to the parent company of 153 million yuan, representing a year-on-year growth of 56.89% [2]

Core Viewpoint - The company is a leading supplier in the global wind turbine blade materials sector, with strong performance in structural adhesives and a growing presence in the new energy vehicle and industrial adhesive markets [2][3]. Summary by Categories Company Overview - The company has a total market capitalization of 3.155 billion yuan and an issuance price of 5.98 yuan per share, with a price-to-earnings ratio of 29.05 [2]. - The company is recognized for its leading position in the wind turbine blade materials market, supplying major clients such as Goldwind and Vestas [2][3]. Business Highlights - The company has successfully expanded into overseas markets, achieving supply agreements with Vestas, making it the only supplier to provide wind turbine blade materials to them [2]. - The company’s new energy vehicle and industrial adhesive business is experiencing rapid growth, with key clients including Geely Group, Tyco Electronics, and others [3]. Financial Performance - The company reported revenues of 3.236 billion yuan in 2024 (projected, +1.13%), 3.202 billion yuan in 2023 (down 6.81%), and 3.436 billion yuan in 2022 (up 9.89%) [3]. - The funds raised will be directed towards the annual production of 56,000 tons of high-end adhesives for new energy and power batteries, along with bank loans [3].

Investment Rating - The investment rating for the company is positioned in the middle to upper range of the AHP model, with scores of 2.23 and 2.38, corresponding to the 30.2% and 40.6% percentiles respectively [2][5]. Core Insights - The company is a leading player in the wind power resin materials sector, achieving significant market share in both domestic and international markets, with a focus on wind turbine blade materials and new composite materials [6][7]. - The company has successfully replaced imports with domestic products in the wind power resin market, ranking first globally in wind power epoxy resin and third in high-performance structural adhesives as of 2024 [6][8]. - The demand for wind power and lithium battery adhesives is expected to grow significantly, driven by both new installations and upgrades of existing wind farms, as well as the increasing production of electric vehicles [15][16]. Summary by Sections AHP Score and Expected Allocation Ratio - The AHP score for the company, after excluding liquidity premium factors, is 2.23, placing it in the 30.2% percentile of the non-Science and Technology Innovation Board AHP model [5][6]. - The expected allocation ratios for offline investors are 0.0197% for Class A and 0.0170% for Class B under a neutral scenario [5][6]. Company Highlights and Features - The company has transitioned from being a distributor of imported wind power materials to a manufacturer, achieving significant market penetration in wind turbine blade materials [7][8]. - The company is actively involved in the domestic production of new composite materials and has accelerated the certification of high-margin industrial adhesives for electric vehicles [12][14]. - The company has established partnerships to explore domestic alternatives for key new composite materials, including carbon fiber and lithium battery casing solutions [12][14]. Financial Comparison with Peers - The company has a leading revenue scale compared to its peers, with a projected revenue growth of 22.32% to 27.03% for the first nine months of 2025 [20][19]. - The average price-to-earnings ratio for comparable companies is 65.32X, while the company's industry has a static P/E ratio of 27.91X [19][20]. - The company's gross margin has improved due to a higher proportion of high-margin products and price adjustments in response to strong demand [23][19]. Fundraising Projects and Development Vision - The company plans to raise funds through the issuance of up to 13,188,000 shares, with proceeds allocated to high-end adhesives and composite materials projects [30][32]. - The investment will enhance production capacity for high-performance composite materials and adhesives, targeting applications in wind power and electric vehicles [30][32].

Investment Rating - The investment rating for the company is positioned in the middle to upper range of the AHP model, with scores of 2.23 and 2.38, corresponding to the 30.2% and 40.6% percentiles respectively [2][7]. Core Insights - The company is a leading player in the wind power resin materials sector, achieving significant market share in both domestic and international markets, with a focus on replacing imports and surpassing foreign competitors [2][11]. - The company has successfully established a product portfolio that includes wind turbine blade materials, new composite materials, and adhesives for electric vehicles, with a notable increase in sales and profitability driven by high-margin products [2][15]. - The demand for wind power and electric vehicle adhesives is expected to grow significantly, supported by increasing installation capacities and the strong growth of lithium battery shipments [2][18]. Summary by Sections AHP Score and Expected Allocation Ratio - The company achieved an AHP score of 2.23, indicating a competitive position in the market, with expected allocation ratios for different investor classes set at 0.0197% and 0.0170% under neutral conditions [7][8]. Company Highlights and Features - The company is recognized as a leader in wind power resin materials, with a global market share ranking of first and third in wind epoxy resin and high-performance structural adhesives respectively for 2024 [2][11]. - The company is actively promoting the domestic production of new composite materials and has accelerated the certification of adhesives for electric vehicles, achieving significant sales growth in this segment [2][15]. - The anticipated growth in wind power installations and the demand for electric vehicle adhesives is projected to drive the company's revenue growth, with expectations of 105-115 GW of new wind installations in 2025 [2][18]. Comparable Company Financial Metrics - The company has a leading revenue scale compared to its peers, with a projected revenue growth of 22.32%-27.03% for the first nine months of 2025, driven by increased demand and price adjustments [22][23]. - The company's gross margin has improved due to a higher proportion of high-margin products, with a notable increase in sales of electric vehicle adhesives [22][26]. - The company’s cash collection ratio is lower than that of comparable companies, and its debt ratio is higher, although it shows a declining trend [22][28]. Fundraising Projects and Development Vision - The company plans to raise funds through the issuance of new shares to support the production of high-end adhesives and composite materials, with a total investment of approximately 706 million yuan [33][36].

Core Viewpoint - The company Daoshengtianhe Materials Technology (Shanghai) Co., Ltd. is facing significant challenges in its IPO application process, including unstable revenue, high dividend payouts amidst cash flow issues, and internal shareholder disputes, raising concerns about its governance and financial health [1][2][4]. Financial Performance - Daoshengtianhe's revenue from 2020 to 2024 has shown volatility, with figures of approximately 33.32 billion, 31.27 billion, 34.36 billion, 32.02 billion, and 32.38 billion respectively, indicating inconsistent performance [4]. - The net profit during the same period was 1.38 billion, 0.85 billion, 1.1 billion, 1.55 billion, and 1.55 billion, with a significant drop of over 30% in 2021 [4]. - The company has distributed a total cash dividend of 250 million from 2021 to 2023, which accounts for 81.17% of its net profit of 308 million during that period, significantly exceeding the scrutiny standards for large dividends [3][4]. Shareholder Dynamics - The ownership structure of Daoshengtianhe is complicated, with the controlling shareholders, Ji Gang and Zhang Ting, holding 60.47% of the shares and possessing U.S. permanent residency [4]. - There have been low-priced share transfers among shareholders, raising suspicions of potential benefit transfers, which have destabilized the company's equity structure [3]. Governance Issues - The company has experienced severe internal conflicts among shareholders, which have been publicly visible and have negatively impacted corporate governance [2]. - The initial chaotic shareholding arrangements reflect a lack of governance awareness, and ongoing litigation during the IPO process raises concerns about internal stability [2]. Market Position and Strategy - Daoshengtianhe aims to enter the high-end adhesive market, but its existing production capacity utilization rates are low, at 29.65%, 76.35%, and 78.65% for 2022-2024, indicating potential overexpansion risks [6]. - The company’s products are under scrutiny for being classified as "high pollution" and "high environmental risk," which could hinder its market acceptance [6][7]. Environmental Concerns - The company has faced criticism regarding its environmental practices, particularly in relation to its products being similar to those listed as "high pollution" by the Ministry of Ecology and Environment [6][7]. - Despite adjustments to its investment projects, a significant portion of its planned production still aligns with "high pollution" products, raising questions about its environmental compliance and project planning [7].

Core Viewpoint - Daoshengtianhe Materials Technology (Shanghai) Co., Ltd. has successfully passed its IPO review and plans to raise 694 million yuan by issuing up to 58.62 million shares, despite facing financial and governance concerns [3][4]. Financial Performance - Daoshengtianhe's revenue from 2022 to 2024 is projected to be 34.36 billion yuan, 32.02 billion yuan, and 32.38 billion yuan, indicating a slight downward trend, while net profit is expected to rise from 1.08 billion yuan to 1.55 billion yuan, showing a growth of 40.74% from 2022 to 2023 [7][9]. - In the first quarter of 2025, the company reported a revenue of 8.35 billion yuan, a significant increase from 5.01 billion yuan in the same period of 2024, with a net profit of 299.84 million yuan, up 93.5% year-on-year [8][9]. Product and Market Position - Daoshengtianhe specializes in high-performance thermosetting resins and composite materials, with its main products including epoxy resins for wind turbine blades, which accounted for 65.62% of total revenue in 2024 [4][5]. - The company holds a leading position in the epoxy resin market for wind turbine blades, ranking first globally in sales for three consecutive years [4][5]. Governance and Cash Flow Issues - The company has faced scrutiny over its "clearing-style" dividends, having distributed a total of 310 million yuan in dividends from 2020 to 2023, despite negative operating cash flows totaling nearly 800 million yuan during the same period [9][10]. - Daoshengtianhe's accounts receivable were significant, amounting to 1.107 billion yuan, 978 million yuan, and 1.046 billion yuan from 2022 to 2024, raising concerns about cash flow management [10][11]. Customer and Supplier Concentration - The company has a high concentration of sales to its top five customers, which accounted for 71.94%, 68.44%, and 68.19% of total revenue from 2022 to 2024 [11][12]. - Similarly, purchases from the top five suppliers represented 69.60%, 60.84%, and 50.61% of total raw material procurement during the same period [11][12].