Investment Rating - The investment rating for the company is "Buy" (maintained) [1][24]. Core Views - The company has shown significant growth in protective materials, with a doubling of revenue from radiation protection materials and continuous growth in MIM products [4][5]. - The company achieved a revenue of 451 million yuan in H1 2025, representing a year-on-year increase of 8.3%, while the net profit attributable to shareholders decreased by 8.9% [4][5]. - The company is making progress in new material projects, particularly in transparent radiation protection materials, which fill a domestic technology gap [7][8]. Financial Performance - In Q2 2025, the company reported a revenue of 244 million yuan, up 8.0% year-on-year and 18.3% quarter-on-quarter, with a net profit of 37 million yuan, down 2.1% year-on-year but up 20.6% quarter-on-quarter [6][21]. - The gross profit margin for H1 2025 was 36.00%, a decrease of 2.6 percentage points year-on-year, while the net profit margin was 14.70%, down 3.14 percentage points year-on-year [4][14]. - The company’s revenue projections for 2025, 2026, and 2027 are 1.018 billion, 1.283 billion, and 1.664 billion yuan, respectively, with corresponding net profits of 155 million, 192 million, and 244 million yuan [9][10]. Segment Performance - The adsorption functional materials segment generated revenue of 278 million yuan in H1 2025, down 2.4% year-on-year, while the electronic ceramic components segment saw a revenue increase of 5.4% year-on-year to 78 million yuan [5][12]. - The high-energy radiation protection materials segment achieved a remarkable revenue growth of 108% year-on-year, reaching 65 million yuan, with a gross margin of 59.5% [5][12]. Strategic Initiatives - The company is advancing its acquisition of Guangzhou Jinnan Magnetic Materials Co., aiming for a comprehensive layout in magnetic materials [9]. - The company plans to enhance its market presence in Europe and the United States while expanding into Southeast Asia and the Middle East, focusing on customized, lead-free, and lightweight product solutions [8][9].