Core Insights - The MEMS industry in Greater China is projected to reach $1.7 billion in revenue in 2024, with a year-on-year growth of 8.4% and an estimated shipment of 5.4 billion units [1] - The market is expected to grow at a compound annual growth rate (CAGR) of 3.6% from 2024 to 2030, reaching $2 billion in revenue and 6.6 billion units sold by 2030 [1] - Chinese manufacturers are positioned to capitalize on this growth, particularly in the "AI + IoT + automotive electronics" wave [1] Market Dynamics - Consumer electronics remain the largest application segment for MEMS, with strong demand for inertial sensors, microphones, and pressure sensors in wearable devices like TWS headphones and smartwatches [3] - Major Chinese companies such as Silan Microelectronics, AAC Technologies, Goermicro, MiraMEMS, and MEMSensing are key players in the supply chain, leveraging performance, reliability, and cost advantages [3] - Goermicro is projected to achieve over 4.5 billion yuan in revenue in 2024, making it the largest smart sensor interaction solution provider in China [3] Revenue Growth - Silan Microelectronics reported a 10% increase in revenue for its MEMS sensor products in the first half of 2025, with a market share of 20%-30% in domestic smartphone brands [3] - AAC Technologies' sensor and semiconductor business revenue reached 608 million yuan in the first half of 2025, a 56.2% increase, driven by high signal-to-noise ratio microphones [4] - MEMSensing achieved a record revenue of 300 million yuan in the first half of 2025, a 47.82% increase, with significant upgrades in acoustic sensor technology [5] Industry Expansion - Chinese MEMS manufacturers are expanding into high-value sectors like automotive and industrial applications, with Silan Microelectronics developing high-precision inertial sensors for automotive use [6] - The automotive sector is seeing increased demand for MEMS microphones due to the rise of smart cockpits and voice control systems [6] - The industrial sector is leveraging MEMS accelerometers and microphones for equipment health monitoring, aligning with the cost and manufacturing flexibility of Chinese firms [7] Emerging Applications - The medical market is expected to be one of the fastest-growing segments for MEMS, particularly with the opening of the OTC hearing aid market in the U.S. and China [7] - MEMS technology is also being integrated into AI infrastructure, with demand for MEMS optical switches and micro-mirrors in optical communication systems [8] Device Maturity - The variety of MEMS devices includes inertial, acoustic, environmental, optical, medical, and energy-related types, with applications expanding beyond consumer electronics [9] - Chinese manufacturers have achieved near-complete domestic production of MEMS microphones, reaching international performance standards [10] Manufacturing Advancements - The MEMS foundry sector in Greater China is projected to grow by 14.3% in 2024, becoming a new growth engine for the industry [13] - Companies like Chipone Integrated Circuits and Huazhong University of Science and Technology are emerging as key players in MEMS wafer foundry [16][17] - The transition from 8-inch to 12-inch wafer production lines is underway, with Guangzhou Zengxin launching the first 12-inch MEMS sensor production line in China [18] Future Outlook - Chinese MEMS companies are expected to gain unprecedented development opportunities, benefiting from their position as a core manufacturing hub for consumer electronics, automotive, and industrial sectors [12] - The focus on manufacturing capabilities is shifting from "filling gaps" to "building advantages," enhancing China's bargaining power and technological influence in the global MEMS market [21]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Insights - The company reported strong revenue performance with a total revenue of 4.086 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 29.72%. The net profit attributable to the parent company reached 707 million yuan, up 46.21% year-on-year, and the net profit excluding non-recurring items was 667 million yuan, reflecting a growth of 50.31% year-on-year [5][6] - In Q3 alone, the company achieved a revenue of 1.542 billion yuan, marking a year-on-year increase of 36.7% and a quarter-on-quarter increase of 9.59%. The net profit attributable to the parent company for Q3 was 356 million yuan, up 37.33% year-on-year and 73.38% quarter-on-quarter, while the net profit excluding non-recurring items was 338 million yuan, showing a year-on-year growth of 44.49% and a quarter-on-quarter growth of 72.68% [5][6] Financial Performance - The company maintained a high gross margin of 54.05% in Q3 2025, with a slight year-on-year decrease of 0.06 percentage points and a quarter-on-quarter decrease of 0.52 percentage points. The expense ratio decreased slightly to 29.33%, leading to a net profit margin increase of 2.48 percentage points to 21.38% [11] - The contract liabilities increased significantly to 320 million yuan at the end of Q3, up 95.75% from the beginning of the period, indicating strong future demand. The inventory balance reached a historical high of 2.121 billion yuan, reflecting the company's proactive preparation for ongoing demand release [11] Strategic Developments - The company has established a comprehensive capability across the entire industry chain from infrared chips, detectors, and mechanisms to complete machines, while also achieving a full-chain layout in the microwave field. This forms a technological closed loop [11] - The integration of AI technology is ongoing, with continuous improvements in core algorithms for intelligent detection and recognition, enhancing technical precision [11] Earnings Forecast - The company is expected to achieve net profits attributable to the parent company of 950 million yuan, 1.33 billion yuan, and 1.79 billion yuan for the years 2025 to 2027, with year-on-year growth rates of 66.3%, 40.5%, and 35.0% respectively. The corresponding price-to-earnings ratios are projected to be 39.2, 27.9, and 20.7 times [11]

Group 1 - The defense and military industry sector continues to adjust, with the popular defense military ETF (512810) showing active buying despite fluctuations, indicating a potential turning point in fund flows [1] - From the end of October, the net subscription of the ETF has exceeded 22 million yuan over three consecutive trading days, reflecting positive market sentiment towards the sector's future [1] - Key stocks in the sector include Fushun Special Steel, which rose nearly 6%, along with Huali Chuantong, Shanda Shares, and Guorui Technology, while Guobo Electronics, Great Wall Military Industry, and Aerospace Science and Technology saw significant declines [3] Group 2 - The successful launch of the Shenzhou 21 manned spacecraft on October 31, 2025, marks a significant step in China's aerospace ambitions [3] - Major manufacturers like AVIC Shenyang Aircraft Corporation and Aero Engine Corporation of China reported significant growth in contract liabilities in Q3, indicating a sustained improvement in aerospace equipment orders and steady recovery in industry demand [3] - Analysts predict substantial growth in defense and aerospace equipment sectors driven by multiple catalysts, including the 14th Five-Year Plan, the centenary of the military, and rapid development in military trade [3] - The ETF tracks the CSI Military Industry Index, with top ten weighted stocks including China Shipbuilding, Guangqi Technology, AVIC Shenyang, and others [3]

Core Viewpoint - Ruichuang Micro-Nano has experienced a decline in stock price, with a cumulative drop of 5.68% over the past four days, indicating potential concerns among investors [1] Company Overview - Ruichuang Micro-Nano Technology Co., Ltd. is located in Yantai, Shandong, China, established on December 11, 2009, and listed on July 22, 2019. The company specializes in the design and manufacturing of application-specific integrated circuits, MEMS sensors, and infrared imaging products [1] - The revenue composition of the company is as follows: infrared thermal imaging and optoelectronic business accounts for 94.48%, microwave radio frequency business 2.94%, and others 2.59% [1] Fund Holdings - According to data, a fund under Bank of China Securities holds Ruichuang Micro-Nano as one of its top ten positions. The fund, Zhongyin Securities CSI 500 ETF Linked A (008258), held 200 shares in the third quarter, unchanged from the previous period, representing 0.01% of the fund's net value [2] - The fund has incurred a floating loss of approximately 66 yuan today and a total floating loss of 966 yuan during the four-day decline [2] Fund Manager Performance - The fund managers of Zhongyin Securities CSI 500 ETF Linked A are Liu Xianzheng and Zhang Yimin. Liu has been in the position for 7 years and 281 days, with a total fund asset size of 794 million yuan, achieving a best return of 118.04% and a worst return of -34.66% during his tenure [3] - Zhang has been managing the fund for 5 years and 52 days, also with a total asset size of 794 million yuan, achieving a best return of 23.44% and a worst return of -40.75% during his tenure [3]

Core Viewpoint - Ruichuang Micro-Nano has experienced a decline in stock price, with a cumulative drop of 5.68% over the past four days, indicating potential concerns among investors regarding the company's performance and market conditions [1]. Company Overview - Ruichuang Micro-Nano Technology Co., Ltd. is located in Yantai, Shandong, China, and was established on December 11, 2009. The company went public on July 22, 2019. Its main business involves the design and manufacturing of specialized integrated circuits, MEMS sensors, and infrared imaging products [1]. - The revenue composition of the company is as follows: infrared thermal imaging and optoelectronic business accounts for 94.48%, microwave radio frequency business 2.94%, and others 2.59% [1]. Fund Holdings - According to data from the top ten holdings of funds, Hongde Fund has a significant position in Ruichuang Micro-Nano. The Hongde CSI 500 Index Enhanced A Fund (023821) held 5,189 shares in the third quarter, representing 0.74% of the fund's net value, making it the tenth largest holding [2]. - The estimated floating loss for the fund today is approximately 1,712.37 yuan, with a total floating loss of 25,100 yuan during the four-day decline [2]. Fund Manager Performance - The fund manager Su Changjing has a tenure of 9 years and 192 days, managing assets totaling 1.053 billion yuan, with the best fund return during his tenure being 108.64% and the worst being -33.53% [2]. - Co-manager Sun Zeyu has been in position for 1 year and 326 days, managing assets of 667 million yuan, with the best return of 63.97% and the worst return of 7.98% during his tenure [2].

Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company has shown strong performance in its infrared business, with significant growth in revenue and net profit for the first three quarters of 2025, achieving a revenue of 40.86 billion yuan (up 29.7% year-on-year) and a net profit of 7.07 billion yuan (up 46.2% year-on-year) [1][2]. - The company is focusing on multi-dimensional sensing technologies, primarily in infrared, microwave, and laser sectors, while also investing heavily in research and development [2][3]. - The company has established a complete industrial chain in the infrared sector, from chip design to final product manufacturing, and is expanding its applications in various fields [3]. Financial Summary - For the first three quarters of 2025, the company reported a gross margin of 51.97%, an increase of 0.84 percentage points year-on-year, and a net profit margin of 15.15%, up 2.90 percentage points year-on-year [2]. - The company’s revenue for 2025 is projected to reach 54.26 billion yuan, with a year-on-year growth rate of 25.7% [9]. - The estimated net profit for 2025 is 8.86 billion yuan, reflecting a year-on-year growth rate of 55.8% [9].

Investment Rating - The report maintains a positive investment rating for the military industry, suggesting a focus on key companies and sectors within the industry [8]. Core Insights - In Q3 2025, active funds reduced their allocation to the military sector, with a decrease of 0.57 percentage points, marking a continued trend of low allocation since Q1 2025 [3][4]. - The scale of military-themed funds has shown a recovery, increasing by 10.62% to 44 billion yuan in Q3 2025, indicating a potential shift in investor sentiment [21][22]. - Active funds have primarily increased their holdings in the aerospace sector while reducing exposure to other segments, reflecting a concentrated investment strategy [5][26]. Summary by Sections Fund Allocation Analysis - In Q3 2025, active funds had a military allocation of 872 billion yuan, which is 2.23% of their total holdings, a slight decrease from the previous quarter [12][13]. - The military sector ranked 26th out of 30 in terms of allocation changes among various industries, indicating a significant reduction in military exposure [17][19]. Holdings Concentration - The concentration of active fund holdings increased to 72.62% for the top 15 stocks, recovering above 70% after three consecutive quarters of decline [24]. - The top five stocks held by active funds include AVIC Shenyang Aircraft Company, Ruichuang Micro-Nano, and Aero Engine Corporation of China, with significant changes in the number of funds holding these stocks [31][33]. Sector Performance - The total assembly segment's market value share surpassed upstream segments for the first time, reaching 37%, while the upstream segment accounted for 36% [5][27]. - The aerospace sector accounted for 37% of the total market value held by active funds, with a notable increase in holdings compared to other segments [27][28]. Recommendations for Focus - The report suggests focusing on new-generation traditional equipment and new combat forces, highlighting key companies such as AVIC Shenyang, Feilihua, and various AI computing and military trade-related firms [6].

Core Insights - Ruichuang Micro-Nano experienced a decline of 5.11% on November 3, with a stock price of 78.81 CNY per share and a trading volume of 352 million CNY, resulting in a total market capitalization of 36.271 billion CNY [1] Company Overview - Ruichuang Micro-Nano Technology Co., Ltd. is located in the Yantai Free Trade Zone, Shandong, China, and was established on December 11, 2009. The company went public on July 22, 2019. Its main business involves the design and manufacturing of specialized integrated circuits, MEMS sensors, and infrared imaging products [1] - The revenue composition of the company is as follows: 94.48% from infrared thermal imaging and optoelectronic business, 2.94% from microwave radio frequency business, and 2.59% from other sources [1] Fund Holdings - The Oriental Alpha Fund has a significant holding in Ruichuang Micro-Nano, specifically in the Oriental Alpha Zhaoyang Mixed A Fund (011184), which held 241,400 shares as of the third quarter, accounting for 5.84% of the fund's net value, making it the ninth largest holding [2] - The Oriental Alpha Zhaoyang Mixed A Fund was established on March 17, 2021, with a current size of 278 million CNY. Year-to-date, the fund has incurred a loss of 12.77%, ranking 8209 out of 8223 in its category, and has lost 15.95% over the past year, ranking 8098 out of 8115 [2] Fund Manager Performance - The fund manager of the Oriental Alpha Zhaoyang Mixed A Fund is Pan Lingzi, who has been in the position for 350 days. The total asset size of the fund is currently 386 million CNY. During Pan's tenure, the best fund return was -4.61%, while the worst return was -14.16% [3]

Group 1 - The 2025 High-Quality Development Forum for Listed Companies and the 27th Golden Bull Award Ceremony took place in Nantong, Jiangsu, with the theme "Moving Forward with New Initiatives for a Sustainable Future" [1] - RuiChuang Micro-Nano's Secretary, Huang Yan, won the "2024 Golden Bull Secretary Award" [1] - RuiChuang Micro-Nano specializes in the research and development of dedicated integrated circuits, sensing chips, and AI intelligent complete products and solutions, recognized as a national high-tech enterprise [1] Group 2 - The company has made significant breakthroughs in non-refrigerated infrared detector chip technology, establishing its leading position in the global infrared thermal imaging industry [1] - The company has strategically upgraded from a "single infrared" focus to a "multi-dimensional perception" approach, developing a new industry pattern with three main tracks: infrared, laser, and microwave [1] - This strategic expansion provides solid technical support for the intelligent upgrade of high-end equipment [1]

Core Viewpoint - The company reported significant growth in revenue and profit for Q3, driven by strong demand in the infrared imaging and optoelectronic sectors, indicating a positive outlook for future development [1][2]. Financial Performance - Q3 revenue reached 1.542 billion yuan, a year-over-year increase of 36.70% and a quarter-over-quarter increase of 9.59% [1]. - Net profit attributable to shareholders for Q3 was 356 million yuan, up 37.33% year-over-year and 73.38% quarter-over-quarter [1]. - For the first three quarters of 2025, revenue totaled 4.086 billion yuan, reflecting a year-over-year growth of 29.72%, with net profit at 707 million yuan, up 46.21% year-over-year [1]. Profitability and Cost Management - The overall gross margin for the first three quarters was 51.97%, an increase of 0.85 percentage points compared to the same period last year [2]. - The expense ratio for the first three quarters was 31.09%, a decrease of 1.63 percentage points year-over-year, indicating improved cost management [2]. Research and Development - R&D investment for the first three quarters was 812 million yuan, a year-over-year increase of 41.19%, with an R&D expense ratio of 19.88% [3]. - The company is focusing on AI applications across various business areas, achieving significant progress in chip design and terminal products [3]. Market Expansion and Product Development - The company has made notable advancements in the automotive sector, with a comprehensive product system for vehicle-mounted infrared thermal imaging and successful certification upgrades [3]. - Multiple projects with leading enterprises in the automotive sector have been secured, with several vehicle models already launched or set to launch [3]. Profit Forecast and Valuation - The company's net profit forecasts for 2025-2027 have been raised by 9.27%, 8.79%, and 12.03%, respectively, with a compound annual growth rate of 38.13% [4]. - The target price has been adjusted to 131.07 yuan, based on a price-to-earnings ratio of 51 for 2026 [4].