Navigating Stability: New Market's Modest Revenue Growth Amidst Competitive Challenges

Performance of the Quarterly Report

As of March 31, 2025, Newmarket (NEU) had an operating income of RMB700,946,000, up 0.32% from RMB696,736,000 as of March 31, 2024. Although the growth rate was small, it still showed the stability of the Company's operating income. This growth may be attributed to the overall recovery of industry demand and the Company's effective sales strategies.

Key Data in the Financial Report

1. The operating income increased slightly by 0.32%, showing the Company's relative stability in the market.

2. The sales cost decreased from RMB480,371,000 to RMB464,923,000, indicating the Company's success in cost control.

3. The research and development expenses increased from RMB31,200,000 to RMB33,176,000, reflecting the Company's continuous investment in technology and product innovation.

4. Changes in the overall market environment may affect operating income, and attention should be paid to the competition dynamics and macroeconomic indicators in the industry.

Peer Comparison

1. Industry-wide analysis: In the current economic environment, many industries face challenges such as rising costs and fluctuating demand. Overall, the operating income growth rate of the industry is generally low, and NEU's 0.32% growth rate is relatively stable in the industry average, showing the Company's competitiveness in the industry.

2. Peer evaluation analysis: Compared with other companies in the same industry, NEU's operating income growth rate is at a medium level. Although the growth rate is limited, considering the Company's cost control and R&D investment, its profitability and market position are still worth noting.

Summary

NEU showed relatively stable operating income growth in 2025, mainly due to stable market demand and the Company's effective cost control measures. The Company's R&D investment also provides potential for future growth. However, in the fierce market competition, NEU still needs to enhance its market competitiveness to maintain its stable performance.

Opportunities

1. With the rapid development of the AI industry, NEU's sales of DDR5 memory interface and related products are expected to achieve significant growth.

2. The Company's high-performance computing chip sales are expected to grow significantly, helping to boost overall performance.

3. Through continuous R&D investment, NEU can gain a competitive advantage in technological innovation and drive future revenue growth.

Risks

1. The competition is becoming increasingly fierce, and some competitors have achieved higher income growth, which may affect NEU's market share.

2. Although sales costs have decreased, future costs may face pressure due to changes in the external market environment.

3. The Company's operating income growth rate is lower than some competitors in the industry, which may lead to a decrease in investors' confidence in the Company's future growth.