Investment Rating - The report maintains a "Buy" rating for the company [2][6]. Core Views - The company experienced both year-on-year and quarter-on-quarter revenue growth in Q2 2025, with expectations for long-term growth potential [2][12]. - The precious metal catalysts are anticipated to perform well across multiple sectors, contributing to the company's growth [12]. Financial Summary - Total revenue for 2023 is projected at 1,785 million, with a decrease of 5.1% from the previous year. However, revenue is expected to grow significantly in the following years, reaching 3,115 million by 2027, reflecting a compound annual growth rate (CAGR) of 19.6% [4][13]. - Net profit attributable to shareholders is forecasted to decline to 113 million in 2023, down 48.9% year-on-year, but is expected to rebound to 351 million by 2027, with a CAGR of 47.4% [4][13]. - Earnings per share (EPS) is expected to increase from 0.86 in 2023 to 2.69 in 2027, indicating strong growth potential [4][13]. - The return on equity (ROE) is projected to improve from 11.4% in 2023 to 24.9% in 2027, showcasing enhanced profitability [4][13]. Market Data - The target price for the company's stock is set at 45.56 yuan, compared to the current price of 36.66 yuan, indicating a potential upside [6][12]. - The company has a market capitalization of 4,792 million, with a 52-week price range of 21.11 to 40.61 yuan [6][12]. Sales Performance - In the first half of 2025, the company achieved a total revenue of 1,014 million, representing a year-on-year increase of 24.86%. The net profit for the same period was 61 million, up 30.83% year-on-year [12]. - The sales volume of catalyst products reached a historical high, with significant growth in various sectors, including pharmaceuticals (49.26%), basic chemicals (185.54%), and environmental new energy (1497.06%) [12]. Product Development - The company is focusing on expanding its presence in the fine chemical sector, particularly in basic chemicals, with several new products launched [12]. - The development of high-performance catalysts and automation in production processes has shown significant progress, enhancing the company's competitive edge [12]. Precious Metal Market Outlook - The report highlights the expected recovery in the prices of precious metals, which are crucial for the company's catalyst production. The prices of palladium and platinum have shown positive trends in Q2 2025 [12].

Investment Rating - The report maintains a "Buy-B" rating for the company [3] Core Views - The company reported a significant increase in sales in the pharmaceutical and basic chemical sectors, with a notable recovery in profitability in Q2 2025 [4][5] - The company achieved a revenue of 1.014 billion yuan in the first half of 2025, representing a year-on-year growth of 24.86%, and a net profit of 61 million yuan, up 30.83% year-on-year [4] - The sales volume of catalyst products increased by 122.33% year-on-year, with the pharmaceutical sector growing by 49.26% and the basic chemical sector by 185.54% [5] - The prices of key raw materials, palladium and rhodium, have started to recover, leading to a significant improvement in profitability, with a gross margin of 18.26% in Q2 2025 [6] Financial Performance - The company is projected to achieve revenues of 2.201 billion yuan, 2.606 billion yuan, and 3.014 billion yuan for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 30.5%, 18.4%, and 15.6% [8] - The net profit is expected to reach 167 million yuan, 235 million yuan, and 297 million yuan for the same years, with growth rates of 80.3%, 40.7%, and 26.5% [8] - The earnings per share (EPS) are projected to be 1.28 yuan, 1.80 yuan, and 2.27 yuan for 2025, 2026, and 2027, respectively [8] Market Data - As of August 22, 2025, the closing price of the company's stock was 39.96 yuan, with a year-to-date high of 41.01 yuan and a low of 20.86 yuan [2]

Core Viewpoint - The company has experienced a significant increase in profits and market share in the second quarter, despite a notable decline in revenue compared to previous quarters due to changes in business structure and sales volume [1][2][3]. Group 1: Financial Performance - As of August 15, 2025, the company reported a 38% decrease in revenue in the second quarter compared to the previous quarter, primarily due to a 14% reduction in other business income and a 31% decline in sales revenue from high-priced products [2][3]. - The company’s recent fund, Quan Guo Xu Yuan Mixed A, achieved a return of 40.15% over the past year, indicating strong performance in the fund market [1][2]. Group 2: Business Segments - The company operates in various sectors, with the fine chemical sector accounting for 70.48% of total revenue in the first half of 2025, driven by a 49.26% increase in sales in the pharmaceutical segment [4][5]. - The basic chemical sector contributed 25.35% to revenue, with a remarkable 185.54% increase in sales, largely due to a 113.22% rise in sales of mercury-free PVC catalysts [4][5]. - The environmental and new energy sector represented 2.90% of revenue, with an astonishing 1,497.06% increase in sales, attributed to advancements in hydrogen catalysts [4][5]. Group 3: Product Development and Market Expansion - The company has successfully developed and sold over ten types of catalysts in the basic chemical sector, with significant market potential in PVC and BDO catalysts [6]. - The hydrogenated nitrile rubber project is progressing well, with the first phase planned for 1,000 tons/year capacity, expected to release 30%-40% of its capacity in 2025 [7]. - The company is actively pursuing opportunities in the metallocene catalyst field, which is crucial for the domestic production of high-end polyolefins [8]. Group 4: Strategic Decisions - The company has decided to deregister a subsidiary, Keli Platinum, due to uncertainties in its future operations and to optimize resource allocation [8]. - The company reported a fair value loss of nearly 4 million due to gold leasing activities, which are part of its processing business [8].

Group 1: Daotong Technology - Daotong Technology is developing an end-to-end payment solution in the AI + charging business, supporting multiple payment methods and exploring stablecoin payments and RW financing [1] - The AI and software business operates on a subscription model, providing various value-added services to enhance software revenue and renewal rates [1] - The growth of the TPMS business is driven by policy benefits and market demand, with significant global aftermarket replacement demand [1] - The AI + inspection business has been implemented in oilfield inspections, achieving a fully autonomous process closure and cluster collaborative response [1] Group 2: Kaili New Materials - In Q2, Kaili New Materials experienced significant profit growth, but revenue declined due to changes in business structure [2] - In the first half of the year, the revenue breakdown showed that the fine chemicals sector accounted for 70.48%, basic chemicals for 25.35%, and environmental new energy for 2.90% [2] - Sales of mercury-free PVC catalysts reached 258 tons, with 366 tons in hand orders, and sales of mercury-free PVC catalysts increased by 113.22% [2] - The high-performance platinum-based dehydrogenation catalyst is in batch trial production, while the hydrogenated nitrile rubber project is in the debugging phase, with applications in oilfields and the automotive industry [2] - The pharmaceutical segment saw a sales increase of 49.26%, with expectations for continued growth in the global pharmaceutical market and R&D service demand [2] - The company plans to optimize resources by deregistering Kaili Platinum, which has not commenced operations [2] - The fair value change loss is primarily due to the initiation of gold leasing business [2]

Core Viewpoint - The company reported strong financial performance in H1 2025, driven by increased sales of catalyst products and structural changes in its business model [1] Group 1: Financial Performance - In H1 2025, the company achieved revenue, net profit attributable to shareholders, and net profit excluding non-recurring gains and losses of 1.014 billion, 61 million, and 63 million yuan respectively, representing year-on-year increases of 24.86%, 30.83%, and 48.74% [1] - In Q2 2025, the company recorded revenue, net profit attributable to shareholders, and net profit excluding non-recurring gains and losses of 389 million, 39 million, and 40 million yuan respectively, with year-on-year changes of -23.42%, +11.38%, and +15.47% [1] Group 2: Business Segments - The sales volume in the basic chemical sector increased by 185.5% year-on-year, primarily due to a 113.2% increase in sales of mercury-free PVC catalysts, along with the introduction of multiple basic chemical catalysts to the market [1] - The pharmaceutical segment saw a sales increase of 49.3% year-on-year, driven by increased demand from core customers and an improvement in market share [1] - The environmental and new energy segment experienced a staggering 1497.1% increase in sales year-on-year, attributed to significant progress in hydrogen catalysts and partnerships with leading companies in water electrolysis hydrogen production [1] Group 3: Future Outlook - The company is expected to maintain an upward trend in its fundamentals, with significant breakthroughs in key customer orders for PVC products anticipated in the second half of 2024 [2] - The company has a backlog of 461 tons of orders for PVC products as of the end of Q1 2025, which is expected to support high growth in sales and revenue for the basic chemical sector throughout the year [2] - The HNBR (hydrogenated nitrile butadiene rubber) industrialization project is expected to launch in the second half of 2025, which could lead to a significant improvement in production efficiency and product quality, positioning the company as a leader in the domestic high-end HNBR market [2] Group 4: Profit Forecast and Investment Recommendation - The company is projected to achieve net profits attributable to shareholders of 170 million, 236 million, and 268 million yuan for 2025-2027, representing year-on-year growth rates of 83.51%, 38.66%, and 13.67% respectively [3] - The current price-to-earnings ratios corresponding to these profit forecasts are 30.8, 22.2, and 19.5 times [3] - The company is expected to exhibit strong performance due to rising prices of key raw materials, increased production in the basic chemical sector, and a recovery in the pharmaceutical sector, leading to a favorable profit growth outlook [3]

Core Insights - The company reported a revenue of 1.014 billion yuan for the first half of 2025, representing a year-on-year growth of 24.86% [1][2] - The net profit attributable to shareholders reached 0.61 billion yuan, marking a year-on-year increase of 30.83% [1][2] - Research and development expenses totaled 0.24 billion yuan, up 7.38% year-on-year, accounting for 2.34% of revenue [1][2] - The net cash flow from operating activities decreased significantly by 359.10% compared to the same period last year [1] Financial Performance - The second quarter of 2025 saw a revenue of 0.389 billion yuan, a decline of 23.42% year-on-year, while net profit increased by 11.38% to 0.39 billion yuan [1] - The total profit for the first half was 69.08 million yuan, compared to 51.4 million yuan in the previous year [2] - The net profit attributable to shareholders for the first half was 61.20 million yuan, up from 46.7 million yuan [2] - The basic earnings per share for the first half was 0.47 yuan [2] Business Segments - The company experienced a 122.33% increase in overall sales of catalyst products compared to the previous year [3] - In the fine chemicals sector, sales grew by 49.26%, driven by increased demand from core customers and enhanced competitiveness [4] - The basic chemicals sector saw a significant sales increase of 185.54%, with PVC mercury-free catalyst sales rising by 113.22% [5] - The environmental and new energy sector reported an extraordinary growth of 1497.06%, attributed to advancements in hydrogen catalysts and partnerships with leading hydrogen production companies [6] Management Changes - The company announced the retirement of Zhang Zhixiang as chairman and legal representative, effective immediately upon delivery of his resignation [6] - Zeng Yongkang was elected as the new chairman of the board, effective from the date of the board's approval [6] - The company plans to deregister its subsidiary, Keli Platinum (Tongchuan) Metal Materials Co., Ltd., to optimize resource allocation without significantly impacting its financial status [8]