Core Viewpoint - The 18th Tianjushi Technology Forum focuses on the theme "Breaking the Game, Transforming: Co-creating a New Chapter in Fine Chemicals and Synthetic Biology Industry," aiming to gather top talents from academia and industry to explore the direction of industrial development and promote practical cooperation [1][5]. Group 1: Opening Remarks - Dr. Chen Ping, Vice Chairman of the Tianjushi Technology Forum Committee, emphasized the transition of the fine chemicals and synthetic biology industry towards high-end, intelligent, and green development, highlighting the forum's role in facilitating thought collisions and transforming them into actual development momentum [5][7]. - Mr. Yue Min, Chairman of Shenzhen Yanyi New Materials Co., Ltd., stated that innovation must translate from laboratory results to industrial value, viewing the forum as a collaborative accelerator to bridge the "last mile" of industrialization [7]. Group 2: Keynote Speeches - Dr. Li Yan, Director of the Material Chemical Department at the Petroleum and Chemical Industry Planning Institute, discussed the innovation and development of the fine chemical industry during the 14th Five-Year Plan, noting a shift from "large quantity" to "qualitative change" and emphasizing the need for continuous innovation in high-performance resins and green processes [10][12]. - Professor Liu Dehua from Tsinghua University highlighted the significance of transitioning from "mineral refining" to "biological refining," marking it as a milestone for sustainable economic development and sharing advancements in biodiesel and PDO bio-refining technologies [12][14]. - Dr. Jerry Lin, CEO of Zhongfu Application Industry Co., Ltd., pointed out the continuous growth of the global semiconductor materials market, with China holding over half of the market share, while emphasizing the urgent technical needs in photolithography and related reagents [14][16]. - Mr. Wu Shaohua, Chief Designer of Tianjushi Group, introduced a new engineering technology model that addresses industrialization bottlenecks, ensuring project success and promoting a technology-driven transformation in the industry [16][18]. - Dr. Xia Jianye from the Tianjin Institute of Industrial Biotechnology presented an intelligent solution for fermentation processes, marking a shift from experience-driven to data and model-driven approaches [18][20]. - Mr. Su Zhenyu, a safety expert, discussed strategies for eliminating catastrophic accidents in the chemical industry, emphasizing the importance of risk prevention at multiple management levels [20][22]. - Professor Sun Fuchun from Tsinghua University addressed the transformative role of artificial intelligence in reshaping industries and society, while also acknowledging the challenges it presents [22][24]. Group 3: Industry-Academia Dialogue - A dialogue session featured discussions among experts on sustainable development in fine chemicals, key factors for synthetic biology, intelligent fermentation, safety management in process design, and the advantages of the flow battery industry, injecting new ideas for high-quality industrial development [24][26].

Investment Rating - The investment rating for the company is maintained at "Buy" [7] Core Views - The company reported a revenue of 2.18 billion RMB for 2024, a year-on-year increase of 12%, but the net profit attributable to shareholders decreased by 58% to 190 million RMB [1] - The decline in profitability is attributed to the drop in valine prices and increased expenses, with the fourth quarter of 2024 showing a significant drop in net profit [1] - The first quarter of 2025 saw a revenue increase of 37% year-on-year, driven by a rebound in valine prices [1][2] - The company is expected to benefit from the gradual market expansion of new products such as tryptophan, PDO, and succinic acid, which may open up growth opportunities [1][3] Summary by Sections Financial Performance - In 2024, the average market price of valine was 14.4 RMB/kg, down 37% year-on-year, primarily due to competition and increased industry capacity [2] - The overall revenue from amino acid products increased by 3% to 1.51 billion RMB, but the gross margin decreased by 13.3 percentage points to 30% [2] - The comprehensive gross margin for the company fell by 15.6 percentage points to 24.9% in 2024 [2] Product Pricing and Market Conditions - As of April 22, 2024, the prices for valine, tryptophan, and arginine were 13.5, 45.5, and 28 RMB/kg respectively, indicating a decline due to industry competition [3] - The first quarter of 2025 showed a slight recovery in valine prices, but the overall market conditions for small amino acids remain challenging [2][3] Future Growth Potential - New projects, including the production of succinic acid and PDO, are expected to gradually release capacity and contribute to future growth [3] - The company has adjusted its profit forecasts for 2025-2026, expecting net profits of 290 million and 380 million RMB respectively, reflecting a decrease from previous estimates [4] - The target price for the company is set at 30.42 RMB, based on a price-to-earnings ratio of 26 times for 2025 [4][8]