Core Viewpoint - The company reported a net profit growth year-on-year in its 2025 semi-annual report, which is notable given the current challenges of compressed downstream industrial profits and escalating overseas trade frictions. The life sciences, high-purity/ultra-pure water treatment, and lithium extraction from salt lakes sectors are expected to have significant growth potential, providing optimistic reasons for the company's continued performance. Particularly in the life sciences sector, the recovery of domestic innovative drug market this year may boost the growth of various product categories [1] Financial Performance - In the 2025 semi-annual report, the company achieved total revenue of 1.247 billion yuan, a decrease of 4% year-on-year, and a net profit attributable to shareholders of 445 million yuan, an increase of 10% year-on-year. For Q2 alone, the company reported revenue of 671 million yuan, a year-on-year increase of 1%, and a net profit of 251 million yuan, a year-on-year increase of 7% [2] Segment Analysis - The company demonstrated strong internal growth, primarily benefiting from the life sciences sector and high growth in overseas business revenue. In Q2, the company maintained net profit growth without recognizing income from major lithium extraction projects, indicating the robustness of its core business. In the first half of 2025, the life sciences, water treatment and ultra-purification, and metal resources segments generated revenues of 320 million, 359 million, and 149 million yuan, respectively, with year-on-year growth rates of 12%, 11%, and 23% [3][4] Life Sciences - The life sciences sector shows significant growth potential, particularly in various consumables. The market for adsorption separation materials in biopharmaceutical purification is substantial, with an annual market size of several hundred billion yuan globally. The company has a diverse product range in this field and, despite currently being smaller than leading domestic peers, has years of technical accumulation and a multi-product layout that may lead to better-than-expected performance, especially in rapidly growing sub-sectors [4] Water Treatment - The high-purity water segment is experiencing considerable growth, with domestic demand for ultra-pure water increasing due to rising trade frictions. The company is well-positioned to capture a larger market share in this area, having developed the capability to produce high-end uniform particle resins [6][7] Lithium Extraction - The company continues to see orders and progress in lithium extraction from salt lakes, with recent lithium price recoveries supporting the long-term viability of its adsorption-based extraction method. The domestic lithium reserves are substantial, and the operational costs of this extraction method are relatively low, suggesting good potential for industrial promotion [8] Other Segments - Beyond the highlighted sectors, the company has good growth potential in other areas. The underlying technology of adsorption separation is applicable across various fields, and as industrial standards for purification and impurity removal continue to rise, demand for this technology is expected to grow. The company has a strong foundation in this technology, having been established in 2001, and is recognized as a leader in adsorption separation materials solutions [9] Profit Forecast and Valuation - The company forecasts net profits attributable to shareholders of 937 million, 1.158 billion, and 1.348 billion yuan for 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 29X, 23X, and 20X, maintaining a "buy" rating [10]