Dongxing Securities Co., Ltd.: Maintains "Recommended" rating for KFMI, profitability will steadily improve

Dongxing Securities Co., Ltd. research report points out that KFMI achieved operating revenue of 2.095 billion yuan in the first half of 2025, a year-on-year increase of 28.71%; the net profit attributable to the parent company after deducting non-recurring gains and losses was 176 million yuan, a year-on-year increase of 3.60%, with two rounds of driving forces releasing growth momentum. The company continues to strengthen the competitiveness of advanced process products and strives to expand its global market share, with domestic and foreign customer orders continuously increasing, leading to sustained growth in operating revenue, which reached 2.095 billion yuan during the reporting period, a year-on-year increase of 28.71%. Currently, multiple semiconductor precision component production bases have been completed and put into operation one after another. Due to being in the initial stage of production, scale effects have not yet formed, resulting in short-term profitability pressure and a decline in gross profit margin. However, as production capacity is gradually released, profitability is expected to steadily improve. The company is a leader in domestic semiconductor target materials, and its semiconductor component business continues to gain momentum. It is estimated that the company's EPS for 2025-2027 will be 1.98 yuan, 2.41 yuan, and 2.98 yuan, respectively, maintaining a "recommended" rating