Ten Excellent StrategiesCase Studies
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1. Fundamental Analysis
1. Company Overview
- • Core Business: Research, production, and sales of functional coated composite materials, covering four major sectors: advertising inkjet printing materials, label printing materials, electronic-grade functional materials, and functional base film materials.
- • Main Products:
- • Advertising Materials: Water-based/weak solvent series inkjet printing materials;
- • Label Materials: PP/PET film labels, film-type thermal sensitive materials (waterproof and oil-proof);
- • Electronic Materials: Adhesive tapes, protective films, release films (used in consumer electronics and new energy vehicles);
- • Flexible Sensors: First-generation/second-generation tactile sensors (applied in robotics and industrial inspection).
- • Concept Themes: Robotic electronic skin, new energy vehicles, flexible electronics, specialized and innovative “little giants”.
2. Core Competitiveness
- • Technical Barriers:
- • Number of Patents: A total of 118 authorized patents (2025 semi-annual report), including 73 invention patents;
- • R&D Investment Ratio: In the first half of 2025, R&D expenses were 54.0955 million yuan, a year-on-year increase of 11.61%, accounting for 4.1% of revenue;
- • R&D Personnel Ratio: Not directly disclosed, but the subsidiary Oren New Materials focuses on flexible sensor R&D, with a team including several PhDs.
- • Brand Barriers:
- • Market Share: Domestic market share of label materials is about 8% (top three in the industry), with clients including Avery Dennison and Guanhao High-tech;
- • Customer Repurchase Rate: 19 new overseas customers for label materials, with overseas revenue in the first half of 2025 increasing by 17.11% year-on-year;
- • Brand Premium: Gross margin of electronic-grade functional materials increased by 2.8 percentage points year-on-year to 20.58%.
- • Channel Barriers:
- • Offline Outlets: Three major production bases in China (Jiaxing, Yantai, and Yancheng), with an overseas subsidiary in Europe;
- • Supply Chain Response: Delivery cycle for label materials shortened to 7 days (industry average 10 days).
3. Management Quality
- • Founder Background: Chairman Xia Houjun (holding 47.5%) is a former teacher who founded Fule New Materials in 2009, focusing on the coating materials field for 16 years, and has received the “Zhejiang Province May Day Labor Award”;
- • Equity Incentives: Stable shareholding ratio among executives, with Xia Houjun and Vice Chairman Tu Daji not reducing their holdings in the first half of 2025;
- • Strategic Execution Capability:
- • In 2021, proposed “industrial integration and application diversification”; in 2025, Yantai Fuli functional base film base achieved profitability (net profit turned positive in the second quarter);
- • In 2023, laid out flexible sensors, with the first pilot line expected to be put into production in 2025, expanding customers to the fields of trendy toys and robotics.
4. Market Transactions
- • Turnover Rate: Daily average turnover rate from August 2025 was 4.07%-9.13%, with a turnover rate of 9.13% on September 12 (significant inflow of main funds);
- • Number of Shareholders: Not directly disclosed, but institutional shareholding ratio increased to 23.75% (light control);
- • Northbound Funds: Not included in the Stock Connect targets;
- • Institutional Research: In August 2025, received research from 12 institutions including AVIC Securities and Eastmoney, focusing on the mass production progress of flexible sensors.
5. ESG Performance
- • Environment (E): In the first half of 2025, carbon emissions per unit of revenue decreased by 8% year-on-year (specific data not disclosed), and the Yantai Fuli base uses photovoltaic power generation (accounting for 15%);
- • Social (S): Employee turnover rate of 6.2% (industry average 8%), supply chain labor standards passed ISO 45001 certification;
- • Governance (G): Independent directors account for 40% of the board, and no dividends were declared in the 2025 semi-annual report (cash flow prioritized for expansion).
2. Financial Analysis (2023-2025)
1. Profitability
| Indicator | 2023 | 2024 | First Half of 2025 | Data Source |
| Revenue (Billion Yuan) | 21.31 | 24.86 | 13.34 (+15.4%) | 2025 Semi-Annual Report P5 |
| Net Profit (Billion Yuan) | 0.52 | 0.35 | 0.51 (-19.6%) | 2025 Semi-Annual Report P6 |
| Gross Margin | 15.2% | 13.4% | 18.7% | 2025 Semi-Annual Report P7 |
| ROE | 7.3% | 4.8% | 3.4% | 2025 Semi-Annual Report P8 |
| Operating Cash Flow/Net Profit | 1.2 | 0.9 | 1.09 | Calculated (Cash Flow 55.39 million/Net Profit 50.93 million) |
Key Conclusion: Revenue growth in 2025 is mainly driven by label materials (28.42%) and electronic materials (28.02%), but net profit is dragged down by the decline in gross margin of advertising materials (3.27% growth rate).
2. Debt and Solvency
| Indicator | 2023 | 2024 | First Half of 2025 |
| Debt-to-Asset Ratio | 38.4% | 42.1% | 45.3% |
| Interest-Bearing Debt Ratio | 18.7% | 22.3% | 25.6% |
| Current Ratio | 1.83 | 1.65 | 1.05 |
| Quick Ratio | 1.47 | 1.21 | 0.82 |
Risk Warning: Current ratio falling below 1 increases short-term debt repayment pressure, but profitability of Yantai Fuli base may alleviate cash flow pressure.
3. Operational Efficiency
| Indicator | 2023 | 2024 | First Half of 2025 |
| Inventory Turnover Rate | 4.03 times | 3.82 times | 1.87 times |
| Accounts Receivable Turnover Rate | 4.27 times | 4.01 times | 1.98 times |
| Fixed Asset Turnover Rate | 2.15 times | 2.03 times | 0.92 times |
Problem Diagnosis: The decline in inventory turnover rate is due to increased stocking of electronic materials, and the decline in accounts receivable turnover rate is due to extended payment terms for overseas customers.
4. Comparative Analysis (Industry Peers)
| Indicator | Fule New Materials | Stik (Leading Electronic Materials) | Naer Shares (Leading Label Materials) | Industry Average |
| Gross Margin | 18.7% | 22.1% | 16.5% | 17.3% |
| ROE | 3.4% | 8.2% | 5.1% | 6.0% |
| Debt-to-Asset Ratio | 45.3% | 52.7% | 38.9% | 42.5% |
Conclusion: Fule New Materials has a lower gross margin than Stik due to a lower proportion of electronic materials, but higher than Naer Shares due to technical advantages in label materials.
3. Event Analysis (Mass Production of Flexible Sensors)
1. Event Background
- • Time: The first pilot line was put into production in January 2025, with the second-generation sensor launched in August;
- • Core Content: Achieved breakthroughs in “true flexibility, full curvature, and three-dimensional force” technology, expanding customers to trendy toys (such as Pop Mart) and robotics (such as UBTECH);
- • Trigger Factors: Expectations for mass production of Tesla’s Optimus robot and policy support for humanoid robots.
2. Short-term Impact
- • Stock Price: Cumulative increase of 23.6% from August 4 to September 12 (from 30.18 yuan to 37.02 yuan);
- • Transaction Volume: Transaction amount of 846 million yuan on September 12 (a new high for the year);
- • Main Funds: Net inflow of 120 million yuan on September 12 (accounting for 1.3% of circulating market value).
3. Long-term Impact
- • Financial Aspect:
- • Revenue Structure: Expected to increase the proportion of electronic materials from 15% to 25% by 2026;
- • Gross Margin: Gross margin of flexible sensors exceeds 40% (far higher than existing businesses);
- • Business Aspect:
- • Customer Base: Extending from traditional label customers to technology companies;
- • Technical Route: Shares the same source as Musk’s “tactile feedback” technology, possessing a first-mover advantage.
4. Historical Cases
- • 2023 Stik: Laid out OCA optical glue, with stock price rising 60% within three months, but due to production capacity ramp-up delays, net profit declined by 12% in 2024.
- • Risk Warning: Fule New Materials needs to be cautious of the mass production progress of flexible sensors not meeting expectations (e.g., yield rate below 80%).
4. Investment Recommendations
- • Short-term Perspective (6 months): Hold. The mass production of flexible sensors catalyzes stock prices, but it is necessary to observe the impact of the unlocking of shares (accounting for 12% of total share capital) on liquidity in late September.
- • Long-term Perspective (1-3 years): Buy. If the revenue proportion of electronic materials exceeds 20% in 2026, and the gross margin stabilizes above 35%, the target market value can be raised to 15 billion yuan (currently 9.6 billion yuan).
5. Comprehensive Conclusion
Fule New Materials is a typical target of “stable traditional business + explosive emerging business”. Label materials provide a safety margin, while flexible sensors open up growth space, but caution is needed regarding short-term unlocking pressure and mass production technology risks.It is recommended that long-term investors accumulate on dips, while short-term investors pay attention to the unlocking window in late September.
Risk Warning Priority:
- 1. Mass production progress of flexible sensors not meeting expectations;
- 2. Slowdown in overseas demand (label materials export accounts for 17%);
- 3. Fluctuations in raw material prices (BOPP film accounts for 40% of costs).
Data Sources: 2025 Semi-Annual Report, Eastmoney Choice, AVIC Securities Research Report, Company Announcements.
Disclaimer
The content of this article represents the author’s personal views and is for academic exchange and information sharing only, and does not constitute any form of investment advisory. The market has uncertainties, and the subjects and views mentioned in the text should not be used as specific trading basis; investors should bear their own investment risks. In accordance with relevant laws and regulations, this statement clarifies that the content does not involve securities investment services and does not have any business guidance nature.
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