Core Viewpoint - Longhua Technology's stock price has shown fluctuations, with a year-to-date increase of 10.61% but a recent decline over the past five trading days of 10.59% [1] Group 1: Stock Performance - As of November 24, Longhua Technology's stock price was 8.02 CNY per share, with a trading volume of 1.66 billion CNY and a turnover rate of 2.16%, resulting in a total market capitalization of 8.301 billion CNY [1] - The net inflow of main funds was 15.5762 million CNY, with large orders accounting for 24.54% of purchases and 15.63% of sales [1] - The stock has experienced a decline of 6.74% over the past 20 days and 7.82% over the past 60 days [1] Group 2: Company Overview - Longhua Technology Group (Luoyang) Co., Ltd. was established on July 5, 1995, and listed on September 16, 2011, with its main business involving electronic new materials, polymer composite materials, and energy-saving environmental protection [1] - The revenue composition includes: energy-saving heat exchange equipment (35.87%), target materials and ultra-high temperature special materials (26.91%), environmental water treatment products (13.49%), foam products and structural components (9.44%), extractants (8.76%), rail transit products (3.05%), sewage treatment (1.04%), and others (0.89%) [1] Group 3: Financial Performance - For the period from January to September 2025, Longhua Technology achieved an operating income of 2.326 billion CNY, representing a year-on-year growth of 20.49%, and a net profit attributable to the parent company of 180 million CNY, up 16.64% year-on-year [2] - Cumulative cash dividends since the A-share listing amount to 315 million CNY, with 98.0855 million CNY distributed over the past three years [3] Group 4: Shareholder Information - As of September 30, 2025, the number of shareholders increased to 47,000, with an average of 20,766 circulating shares per person, reflecting a 3.32% increase [2] - Hong Kong Central Clearing Limited is the fifth-largest circulating shareholder, holding 16.423 million shares, an increase of 11.0926 million shares compared to the previous period [3]

Core Viewpoint - Longhua Technology (300263) emphasizes the application of advanced extraction and separation technology in various industries, highlighting its potential for growth and innovation in resource recovery and recycling [1] Group 1: Company Overview - Longhua Technology's subsidiary, Sanuo New Materials, utilizes advanced extraction and separation technology [1] - The company focuses on a range of applications including hydrometallurgy, rare earth separation, and lithium extraction from salt lakes [1] Group 2: Industry Applications - The extraction technology is widely applied in urban mining resource disposal, battery metal recovery, and recycling [1] - The sectors mentioned indicate a strong alignment with current trends in sustainable resource management and circular economy practices [1]

Core Viewpoint - The company emphasizes the importance of research and development in new technologies and products, actively exploring domestic alternatives [1] Group 1: Company Strategy - The company will continue to strengthen its independent innovation capabilities in core technologies [1] - The company aims to enhance its competitiveness and expand its market space [1]

Core Viewpoint - Longhua Technology (300263) has successfully completed the scientific evaluation of new wave-absorbing materials, breaking the foreign blockade on core military materials and successfully applying them to multiple key equipment [1] Group 1 - The company's EPMI has achieved significant technological advancements in wave-absorbing materials [1] - The successful application of these materials marks a critical development in military technology [1] - This achievement indicates a potential shift in the competitive landscape of military materials, reducing reliance on foreign sources [1]

Core Insights - The perovskite solar cell sector has seen significant stock price increases, with companies like Zhonglai Co. rising by 20% and several others experiencing gains of over 10% due to advancements in perovskite solar technology [1][2]. Industry Developments - A research team from the Chinese Academy of Sciences has developed a perovskite solar cell prototype with a conversion efficiency of 27.2%, marking a critical step towards industrialization [2]. - The first GW-level perovskite photovoltaic module production line has commenced operations in Wuxi, Jiangsu, capable of producing approximately 1.8 million perovskite solar modules annually [2]. Market Trends - The perovskite solar cell technology is recognized as a potential next-generation photovoltaic technology due to its high theoretical conversion efficiency and low material costs [3]. - The industry is experiencing a shift towards supply chain autonomy and technological advancements, with significant milestones being achieved in production capabilities [4]. Investment Opportunities - Analysts suggest focusing on companies benefiting from supply-side reforms and technological upgrades, including Longi Green Energy, JA Solar, and JinkoSolar [4]. - The ongoing development of perovskite technology is expected to create long-term growth opportunities for firms like Maiwei Co. and Aisxu Co. [4].

Core Insights - The HJT battery concept sector saw a rise of 1.91%, ranking fifth among concept sectors, with 42 stocks increasing in value, including notable gainers such as Tuori New Energy, GCL-Poly Energy, and Jincheng Co., which hit the daily limit up [1][2] Market Performance - The top-performing concept sectors included Cultivated Diamonds (+6.08%), Perovskite Batteries (+2.98%), and Dairy Industry (+2.37%), while the HJT battery sector experienced a modest increase [2] - The HJT battery sector faced a net outflow of 163 million yuan from major funds, with 29 stocks receiving net inflows, and 7 stocks seeing inflows exceeding 100 million yuan [2] Key Stocks - GCL-Poly Energy led the net inflow with 428 million yuan, followed by Canadian Solar, Longhua Technology, and Aishichuang, which also saw significant inflows [2][3] - The stocks with the highest net inflow ratios included Tuori New Energy (50.39%), GCL-Poly Energy (34.20%), and Hangxiao Steel Structure (28.88%) [3] Decliners - The stocks with the largest declines included Haitan Co. (-10.03%), Weidao Nano (-4.61%), and Yujing Co. (-3.94%) [1][6] - The overall market sentiment reflected a mixed performance, with some stocks in the HJT battery sector experiencing significant volatility [6]

Group 1 - The perovskite battery concept has seen a strong surge in the market, with companies like Zhonglai Co., Ltd. and Tuori New Energy reaching a 20% limit-up, while others like Jincheng Co., Ltd. and Longhua Technology also experienced significant gains [1] - A research team led by Yu Jingbi from the Chinese Academy of Sciences has achieved a breakthrough in perovskite solar cells, developing a prototype with a power conversion efficiency of 27.2%, which significantly enhances operational stability [1] - The quality of perovskite films has improved markedly, with carrier lifetimes extended to 20 microseconds and a substantial reduction in interface defect density, leading to a certified efficiency of 27.2% [1] Group 2 - Institutions indicate a strong trend in the perovskite sector characterized by technological breakthroughs, industrial implementation, and supply chain autonomy, focusing on three main areas: price opportunities in the supply chain reform, long-term growth opportunities from new technologies, and industrialization opportunities from GW-level perovskite layouts [1] - CITIC Securities notes that as GW-level production lines become operational and commercialization accelerates, equipment manufacturers in the photovoltaic sector will invest more resources in perovskite technology, with those having relevant technical expertise and prioritizing perovskite strategies likely to lead the market [2] - Recommendations include focusing on HJT equipment leaders and inkjet printing technology providers for the perovskite-HJT stacking route, while also considering domestic leaders in die head manufacturing and companies that could see performance reversals due to perovskite technology [2]

Group 1 - The company responded to an investor inquiry regarding the net profit contribution of its rare earth extraction business, indicating that it currently represents a low percentage of the overall profit [2]

Core Viewpoint - Longhua Technology is a leading enterprise in the new materials and energy-saving environmental protection sector in China, with a focus on electronic new materials, polymer composite materials, and energy-saving environmental protection business [1] Group 1: Business Performance - In Q3 2025, Longhua Technology achieved a revenue of 2.326 billion yuan, ranking 6th among 51 companies in the industry, with the industry leader, Juxing Technology, generating 11.156 billion yuan [2] - The net profit for the same period was 189 million yuan, placing the company 10th in the industry, while the top performer had a net profit of 2.211 billion yuan [2] - The company reported a year-on-year revenue growth of 20.49% and a net profit increase of 16.64% for Q1-Q3 2025 [5] Group 2: Financial Ratios - As of Q3 2025, Longhua Technology's asset-liability ratio was 40.75%, down from 48.14% year-on-year, but still above the industry average of 38.24% [3] - The gross profit margin for Q3 2025 was 23.20%, slightly down from 23.92% year-on-year and below the industry average of 26.36% [3] Group 3: Management Compensation - The chairman, Li Zhanqiang, received a salary of 1.45 million yuan in 2024, an increase of 150,000 yuan from 2023 [4] - The general manager, Liu Yufeng, saw his salary rise to 1.35 million yuan in 2024 from 1.1 million yuan in 2023 [4] Group 4: Shareholder Information - As of September 30, 2025, the number of A-share shareholders increased by 11.74% to 47,000, with an average holding of 20,800 circulating A-shares [5] - Hong Kong Central Clearing Limited became the fifth-largest circulating shareholder, increasing its holdings by 11.09 million shares [5] Group 5: Future Outlook - Zhongyuan Securities raised its earnings forecast for Longhua Technology, projecting revenues of 3.087 billion yuan, 3.411 billion yuan, and 3.786 billion yuan for 2025 to 2027, respectively [6] - The company is actively developing new products and expanding its business in the photovoltaic sector, with significant growth expected from its new materials and water treatment businesses [6]

Core Viewpoint - Longhua Technology reported a revenue of 811 million yuan in Q3, representing a year-on-year increase of 14.50% but a quarter-on-quarter decrease of 7.46%. The net profit attributable to shareholders was 68.84 million yuan, with a year-on-year increase of 39.78% and a quarter-on-quarter increase of 3.36% [1] Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 2.326 billion yuan, reflecting a year-on-year growth of 20.49%. The net profit attributable to shareholders was 180 million yuan, up 16.64% year-on-year, while the net profit excluding non-recurring items was 161 million yuan, increasing by 19.12% year-on-year [1] - The gross margin for the first three quarters of 2025 increased by 1.4 percentage points compared to the beginning of the year, reaching 23.20%. The expense ratio decreased to 13.95%, down 0.6 percentage points year-on-year, with financial expenses dropping from 2.43% to 1.66% due to the delisting of convertible bonds [1] Strategic Initiatives - The company is actively expanding into strategic emerging fields with new materials. Its subsidiary, Sanuo New Materials, focuses on rare earth separation, lithium extraction from salt lakes, and battery metal recycling, establishing long-term partnerships with major rare earth suppliers [2] - The company's target material business includes high-purity molybdenum and molybdenum alloy targets for TFT-LCD/AMOLED, ITO targets, silver alloy targets, and ultra-high purity sputtering targets for semiconductor IC manufacturing, primarily used in display panels and photovoltaic fields [2] - The EPMI wave-absorbing foam has successfully broken the foreign companies' market blockade in China, achieving domestic substitution [3] Profit Forecast and Valuation - The company maintains its net profit forecast for 2025-2027 at 232 million, 258 million, and 310 million yuan, respectively, corresponding to EPS of 0.22, 0.25, and 0.30 yuan. The estimated PE ratios for comparable companies in 2026 are 20.3X for energy-saving and environmental protection business and 23.0X for new materials [4] - Given the broad application space and continuous expansion of the company's material business, a valuation premium is applied to the new materials segment, resulting in a target price of 9.64 yuan for 2026, down from a previous value of 10.49 yuan [4]