Group 1 - The private equity firm Licheng Asset recently conducted research on two listed companies, Feikai Materials and Huate Gas, indicating a focus on growth opportunities in the semiconductor and advanced manufacturing sectors [1][2] - Feikai Materials expects significant revenue growth in 2025 due to strong sales of TMO products, improved gross margins from lower raw material prices, and effective cost control leading to increased net profits [1] - The company has made technological breakthroughs in thick film negative photoresists for advanced packaging and is expanding its EMC materials into advanced packaging, IGBT, and third-generation semiconductor markets [1] Group 2 - Huate Gas has positioned itself in the supply chain of major domestic manufacturers of silicon carbide (SiC) and gallium nitride (GaN) semiconductors, indicating strong demand for its products in the third-generation power device sector [2] - Licheng Asset has a long-standing investment philosophy focused on growth stocks with a margin of safety, managing over 10 billion yuan and specializing in sectors such as pharmaceuticals, advanced manufacturing, and consumer goods [2]

Group 1: Yunyi Electric - The company is focusing on the strategic new track of new energy connection components, expecting rapid growth in the first half of 2025 due to expanding external market demand and strong internal capabilities [1] - The revenue from nitrogen-oxygen sensor business is expected to maintain growth, with the company achieving independent R&D and production of core sensor units, reducing reliance on overseas supply chains [1] - The gross margin of the intelligent wiper system has improved due to increased self-manufacturing rates and lean production, with project volume expected to ramp up in the first half of next year [1] Group 2: Feikai Materials - The company anticipates significant revenue growth for TMO products in the first half of 2025, driven by declining raw material prices and improved gross margins [2] - The company has made technological breakthroughs in thick film negative photoresists and is expanding EMC materials into advanced packaging and third-generation semiconductors [2] - The acquisition of JNC's liquid crystal business is expected to help the company enter the high-value-added small and medium-sized market [2] Group 3: Meichang Co., Ltd. - The company achieved a cost reduction of approximately 12% in the second quarter, with tungsten wire bus costs decreasing by over 10% due to improved industry maturity and lower procurement prices [3] - The self-manufacturing ratio of tungsten wire bus is expected to increase to around 50% by the fourth quarter [3] - The company has a competitive advantage in recycling waste tungsten wire due to its full-process production capabilities [3]

Core Viewpoint - The recent price increase of photoinitiators has a minimal impact on the company's gross profit due to effective cost management and supply chain strategies [1] Group 1: Impact of Photoinitiator Price Increase - The usage of photoinitiators is relatively low in the company's product cost structure, leading to a minor overall impact on gross profit [1] - The company has a mature supply chain management and cost control system that allows for negotiation with suppliers to secure better prices, effectively alleviating external price pressures [1] - The company produces TMO products that not only meet external customer demands but can also be utilized for internal production, further mitigating cost increases [1] Group 2: Future Strategies - If photoinitiator prices remain high, the company plans to increase the self-use ratio of TMO products, which will help in further reducing production costs [1]

Core Viewpoint - The company has made significant progress in registering its TMO products in various countries, which is expected to lead to substantial revenue growth in the upcoming year [1] Group 1 - The company announced that its TMO products have completed new substance registration work in the EU, UK, South Korea, Japan, and other regions [1] - REACH certification in the EU and South Korea's new chemical substance registration procedures have been completed [1] - The company anticipates a strong sales performance for its TMO products in the first half of 2025, with expectations of significant annual revenue growth [1]

Financial Performance - The company achieved a revenue of approximately 1.462 billion RMB in the first half of 2025, representing a year-on-year growth of 3.80% [2] - Net profit attributable to shareholders was about 217 million RMB, an increase of 80.45% compared to the same period last year [3] - The net profit excluding non-recurring gains and losses was approximately 176 million RMB, reflecting a growth of 40.47% year-on-year [3] Business Segments Performance - Semiconductor materials revenue grew by 1.14% year-on-year; excluding the impact of the divestiture of a subsidiary, the actual growth was about 11% [3] - Screen display materials revenue increased by 4.56% year-on-year, with liquid crystal business remaining stable and OLED protective films generating approximately 10 million RMB in revenue [3] - UV curing materials revenue rose by 6.89% year-on-year, with significant growth in optical fiber coatings [3] - Organic synthesis materials segment saw an overall revenue growth of approximately 9.90% year-on-year [3] Strategic Acquisitions - The company completed the acquisition of JNC Corporation's subsidiaries, contributing to revenue growth by including their income in the consolidated financial statements [2] Future Outlook - The company aims to deepen its focus on niche markets within the materials industry and enhance collaboration with industry partners for sustainable growth [4] - The semiconductor sector is expected to benefit from ongoing demand driven by artificial intelligence and consumer electronics [17] Cost Management and Profitability - The net profit excluding non-recurring items increased by 27.68% quarter-on-quarter, attributed to lower raw material prices and effective cost control measures [5][6] - The impact of recent price increases in photoinitiators on gross margins is expected to be minimal due to effective supply chain management [7] Product Development and Market Expansion - The company is actively pursuing new product registrations for TMO products in multiple regions, with strong sales performance anticipated for the year [8] - In advanced packaging, the company has made significant progress in developing key materials and plans to expand its product offerings [9][10] - The company is also working on automotive exterior coatings, with ongoing testing and certification processes [12] Market Dynamics - The global liquid crystal market has an annual demand of approximately 900 tons, with small and medium-sized liquid crystal demand accounting for about 200 tons, offering higher value and profitability [11] - The company is strategically positioning itself to capture market share in the high-value small-sized liquid crystal segment following the acquisition of JNC's liquid crystal business [11]