Investment Rating - The industry investment rating is "Outperform the Market" (maintained) [2][4] Core Viewpoints - The report highlights an expected improvement in supply-demand dynamics for photoinitiators, with a potential recovery in market conditions [4] - The report emphasizes the concentration of production in China, which has become the world's leading producer and exporter of photoinitiators, accounting for 13.21% of global exports in 2023 [4] - The report suggests that the price of photoinitiators is likely to rebound due to expanding applications in UV curing technology and a shift towards environmentally friendly solutions [4] Summary by Sections Market Performance - The report indicates a market performance trend with fluctuations ranging from -17% to 26% from July 2024 to March 2025, compared to the CSI 300 index [3] Supply Side - China is the main production country for photoinitiators, with a concentrated industry structure favoring leading companies [4] - Major domestic producers include Jiurui New Materials, Yangfan New Materials, and others, with capacities of 23,000 tons, 17,000 tons, and 13,000 tons respectively [4] - The report notes that the industry is experiencing consolidation, with smaller players facing challenges due to safety and environmental compliance issues [4] Demand Side - The report discusses the expanding application areas for UV curing technology, which is gaining traction due to its advantages over traditional methods [4] - Historical data shows a significant decline in photoinitiator prices, with a 27.8% year-on-year decrease in 2023 and a further 16.3% drop expected in 2024 [4][7] - The report anticipates a price recovery as demand in high-end applications continues to grow [4] Recommendations - The report recommends focusing on companies such as Jiurui New Materials, Yangfan New Materials, and Strong Power New Materials as potential investment opportunities [4]