Investment Rating - The industry rating is "Outperform the Market" (maintained rating) [4] Core Viewpoints - The high-speed camera market is experiencing rapid growth, with domestic substitution demand further increasing. The market size of China's high-speed machine vision industry was approximately 10 billion in 2022, with an expected average annual growth rate of about 22% from 2023 to 2028, potentially exceeding 33 billion by 2028 [1][30] - The report highlights that Zhongke Shijie is one of the few domestic companies capable of producing commercial high-speed cameras independently, with a market share that increased from 8.6% in 2019 to 22.2% in 2022. The company is expected to achieve rapid growth under the backdrop of domestic substitution and self-control [2][38] - Fuhuang Steel Structure plans to acquire Zhongke Shijie to transform into the high-speed vision field, opening a second growth curve for the company [2][39] Summary by Sections 1. Zhongke Shijie: Layout in High-Speed Vision New Track - Zhongke Shijie is a leading domestic manufacturer of high-speed cameras, having launched the first domestic 10,000-frame high-speed camera in 2017. The company has developed a range of products, including ultra-high-speed cameras and scientific-grade cameras, and has achieved significant technological advancements [10][16] 2. Demand Side: Broad Downstream Application Scenarios - The downstream applications of high-speed vision technology are extensive, covering industrial automation, intelligent transportation, aerospace, medical imaging, and security monitoring. The company has built a rich customer base, including major universities and large industrial enterprises [27][32] 3. Supply Side: Steady Increase in Domestic Market Share - Zhongke Shijie's market share has steadily increased, positioning it among the top brands in the high-speed vision field. The company has achieved a 58% share of the global high-speed camera bidding situation as of December 2024, reflecting a 14% increase compared to the same period in 2023 [38] 4. Fuhuang Steel Structure: Traditional Main Business and Active Layout for Industrial Upgrade - Fuhuang Steel Structure has a strong foundation in steel structure manufacturing and is actively pursuing industrial upgrades. The company has established three intelligent manufacturing bases and is expanding its production capacity through strategic partnerships [39][45] 5. Financial Performance - From 2020 to November 2024, Zhongke Shijie's revenue has shown a growth trajectory, with figures of 0.41 billion, 0.77 billion, 1.52 billion, 1.91 billion, and 1.79 billion respectively. However, the net profit has fluctuated, indicating challenges in maintaining profitability [21][22]

Investment Rating - The investment rating for the company is "Hold" [7] Core Views - The company achieved impressive performance in 2024 with total revenue of 1.345 billion, a year-on-year increase of 40.22%, and a net profit attributable to shareholders of 311 million, up 96.17% year-on-year [1] - The company has a strong order backlog, with new orders amounting to 1.528 billion by the end of 2024, representing a year-on-year growth of 38.31% [3] - The company is expanding its overseas market presence, with significant growth in overseas contract revenue, particularly in the US and Europe [4] Financial Performance - In 2024, the company reported revenue of 1.345 billion, with a gross margin of 43.62% and a net margin of 23.10% [1] - The breakdown of revenue by business segments in 2024 includes: - Substation composite insulators: 879 million, up 34.71% year-on-year, with a gross margin of 46.98% - Rubber seals: 223 million, up 14.10% year-on-year, with a gross margin of 46.86% - Power transmission and distribution line composite insulators: 209 million, up 126.57% year-on-year, with a gross margin of 25.95% [2] - The company’s net profit forecast for 2025-2027 is adjusted to 420 million, 552 million, and 701 million respectively, with corresponding P/E ratios of 27, 20, and 16 [5] Order Backlog - As of the end of 2024, the company had a robust order backlog with new orders of 1.528 billion, including 786 million from domestic markets and 742 million from overseas [3] Overseas Expansion - The company has made significant progress in its overseas market strategy, with overseas contract revenue exceeding 100 million, a growth of over 200% [4] - The construction of a factory in the US is progressing well, with an expected production start in 2027 [4]

行业报告 | 行业专题研究 建筑装饰 证券研究报告 国产替代系列：富煌钢构拟收购中科视界布局第二曲 线，看好高速视觉领域需求成长及国产替代加速 高速摄像机市场高速增长，国产替代需求进一步提升 中科视界是国内少数能够自主生产商品化高速摄像仪的企业，2017 年公司 发布了国产首台万帧级高速相机。高速视觉是一种基于图像处理和计算机视 觉技术的视觉感知技术，公司下游主要为科研客户、工业客户以及军工客户。 2022 年中国高速机器视觉行业市场规模约 100 亿元，其中高速摄像机整机 约占 32 亿元，约占 32%，在新兴技术发展、下游市场增长、国产化替代进 程加快等因素的驱动下，预计 2023-2028 年年均复合增速约为 22%，到 2028 年中国高速机器视觉行业市场规模或将突破 330 亿元。 高速视觉领域技术壁垒较高，中科视界市场份额快速提升 高速机器视觉行业具有较高的技术壁垒，头部主要为 Phantom、Photron 等 国际高速摄像机龙头，在美国对高速摄像仪进行出口管制背景下，公司产品 市占率由 2019 年 8.6%提升至 2022 年的 22.2%，公司已基本拥有和第一梯队 企业竞争的实力产品，我们 ...

Shipping Price Index - The SCFI composite index has shown a rebound of 9% from the end of March to mid-May, influenced by export rush and tariff impacts[10] - The CCFI index, the second largest shipping price index globally, fell to its annual low on April 3, down 27% from the end of 2024, but has since rebounded slightly[13] - The BDI index has been on a downward trend since late March, hitting a low on April 16 before a slight rebound, and then declining again from May 7[17] Port Cargo Throughput - Chinese port cargo throughput has shown resilience, with container throughput reaching a record high on April 27, surpassing 6 million TEUs[20] - The Port of Los Angeles, the busiest in the U.S., saw its import container throughput drop to the lowest level since June 2024 by May 10, indicating negative impacts from tariffs[22] Domestic Production Activity - The high-frequency economic activity index from the First Financial Research Institute has been declining since late March but remains above 1, indicating stronger activity compared to the previous year[29] - The manufacturing PMI new export orders index fell from 49% to 44.7%, while the EPMI production index dropped from 67.7% to 51.6%[29] Trade Outlook - South Korea's exports showed stronger-than-seasonal growth in early and late April, but weakened in mid-April, reflecting the impact of tariff negotiations with the U.S.[30] - The volatility in South Korean exports is expected to continue until the conclusion of U.S.-Korea trade negotiations[30] Risk Factors - Potential risks include unexpected geopolitical conflicts, domestic policy implementation falling short of expectations, and tighter overseas liquidity conditions[36]

Investment Rating - The report maintains a "Hold" rating for the company [7] Core Views - The company achieved impressive performance in 2024, with total revenue of 1.345 billion yuan, a year-on-year increase of 40.22%, and a net profit attributable to shareholders of 311 million yuan, up 96.17% year-on-year [1] - The company has a strong order backlog, with new orders amounting to 1.528 billion yuan by the end of 2024, representing a year-on-year increase of 38.31% [3] - The company is expanding its overseas market presence, with significant growth in overseas contract revenue, particularly in the U.S. and Europe [4] Financial Performance Summary - In 2024, the company reported revenue of 1.345 billion yuan, with a gross margin of 43.62% and a net margin of 23.10% [1] - The breakdown of revenue by business segment in 2024 includes: - Substation composite insulators: 879 million yuan, up 34.71% year-on-year, with a gross margin of 46.98% - Rubber seals: 223 million yuan, up 14.10% year-on-year, with a gross margin of 46.86% - Power transmission and distribution composite insulators: 209 million yuan, up 126.57% year-on-year, with a gross margin of 25.95% [2] - The company’s revenue forecast for 2025-2027 has been adjusted to 1.87 billion, 2.62 billion, and 3.53 billion yuan, respectively [5] Order Backlog and Market Expansion - As of the end of 2024, the company had a robust order backlog, with new orders of 1.528 billion yuan, including 786 million yuan from domestic markets and 742 million yuan from overseas markets [3] - The company is making significant progress in building a factory in the U.S., expected to be operational by 2027, which will further enhance its overseas market capabilities [4]

Core Insights - The report maintains a positive outlook on the defense and military industry, indicating a potential recovery in performance as the new procurement cycle begins in 2025, following a challenging 2024 [1][5][9] - Short-term focus should be on the acceleration of delivery and improved capacity utilization, while long-term attention should be on the reform benefits from equipment procurement and supply chain changes [2] 2024 Financial Performance - The defense and military sector reported total revenue of 680.77 billion yuan in 2024, a year-over-year decline of 2.09%, with a net profit of 24.22 billion yuan, down 38.69% [5][9][12] - The overall gross margin stabilized at 19.77%, despite a decrease in net margin to 3.56% [9][10] 2025 Q1 Performance - In Q1 2025, the sector generated revenue of 130.11 billion yuan, a decrease of 2.84% year-over-year, with a net profit of 6.22 billion yuan, down 18.37% [5][9] - Positive signals from upstream inventory replenishment were noted, particularly in military electronics, which saw a revenue increase of 12.03% [5][9] Structural Differentiation - The report highlights increasing structural differentiation among various segments within the defense sector, with missile and related transactions expected to see significant growth in 2025 [5][9][14] - The report emphasizes the importance of strategic direction in equipment models and the innovation of processes, materials, and components [2][5] Key Segments to Watch - Notable companies to focus on include: - **Aerospace and Engine Manufacturing**: Companies like Runbei Aerospace, Aero Engine Corporation, and Longda Co. are highlighted for their potential in domestic production [5][9] - **Military Electronics**: Companies such as Zhonghang Guangdian and Aerospace Electronics are recommended for their roles in the evolving military electronics landscape [5][22] - **New Materials**: Companies like Fushun Special Steel and Steel Research High-Tech are noted for their growth driven by military-civilian integration [5][20] Future Outlook - The report anticipates a gradual recovery in profitability and performance as the sector transitions from destocking to restocking phases, particularly in 2025 [5][9][23] - The ongoing reforms in the military procurement and supply chain are expected to create new growth opportunities for companies that can adapt to the changing landscape [2][5][26]

Investment Rating - The investment rating for the company is "Accumulate" with a downward adjustment [6] Core Views - The company experienced a profit decline in 2024 due to U.S. sanctions, but showed signs of recovery in Q1 2025 with significant growth in semiconductor business [2][3] - The company plans to focus entirely on its semiconductor business and divest its product integration assets to enhance profitability in this sector [3][4] Financial Performance Summary - In 2024, the company achieved revenue of 73.598 billion yuan, a year-on-year increase of 20.23%, but reported a net loss of 2.833 billion yuan, a decrease of 4.014 billion yuan from the previous year [1] - For Q1 2025, the company reported revenue of 13.099 billion yuan, a year-on-year decrease of 19.38%, but a net profit of 261 million yuan, an increase of 82.29% [1] - The semiconductor business generated revenue of 14.715 billion yuan in 2024 with a net profit of 2.297 billion yuan and a gross margin of 37.47% [3] Strategic Focus - The company is shifting its strategic focus to the semiconductor sector, which accounted for 62.03% of its semiconductor revenue from the automotive sector, with applications in key areas such as drive systems and power systems [4] - The company plans to increase R&D investment to support the development of high ASP products, including power devices and integrated circuits [5] Market Outlook - The semiconductor market, particularly in automotive and industrial sectors, shows significant growth potential driven by trends in electrification and AI technology [4] - The company aims to leverage its leading position in power semiconductors and innovative chip development to capture market opportunities [5]

Investment Rating - The investment rating for the company is "Accumulate" with a downward adjustment [6] Core Views - The company experienced a profit decline in 2024 due to U.S. sanctions, but showed signs of recovery in Q1 2025 with significant growth in semiconductor business [2][3] - The company plans to focus on its semiconductor business and divest its product integration assets to enhance profitability and strengthen its position in the global power semiconductor industry [3][4] Financial Performance Summary - In 2024, the company achieved revenue of 73.598 billion yuan, a year-on-year increase of 20.23%, but reported a net loss of 2.833 billion yuan, a decrease of 4.014 billion yuan from the previous year [1] - In Q1 2025, the company generated revenue of 13.099 billion yuan, a year-on-year decrease of 19.38%, but net profit increased to 261 million yuan, a year-on-year increase of 82.29% [1][2] - The semiconductor business generated revenue of 14.715 billion yuan in 2024 with a net profit of 2.297 billion yuan and a gross margin of 37.47% [3] Strategic Focus - The company is shifting its strategic focus to the semiconductor sector, which accounted for 62.03% of its semiconductor revenue from the automotive sector, with applications in key areas such as drive systems and advanced driver assistance systems [4] - The company plans to increase R&D investment to support the development of high ASP products, including power discrete devices and logic and analog chips [5] Market Outlook - The semiconductor market, particularly in automotive and industrial sectors, shows significant growth potential driven by trends in electrification and AI technology [4] - The company aims to leverage its leading position in power chips and innovative research in analog chips to capture growth in various applications [5]

Group 1: Consumer Electronics - The report highlights the positive outlook for the consumer electronics sector due to the recent adjustments in US-China trade tariffs, which are expected to improve the export environment for Chinese manufacturers in the Apple supply chain, such as GoerTek and Luxshare Precision [3] - The 3D printing industry is experiencing significant developments, with domestic companies making breakthroughs in key technologies, which may disrupt foreign monopolies [3] - The iPhone 16 series is seeing price differentiation in various sales channels, with innovation being a key driver, including the introduction of Apple's first foldable iPhone [3] Group 2: Home Appliances - The global pool cleaning robot market is projected to grow significantly, with an expected penetration rate of 28% by 2026, driven by the increasing number of pools worldwide [5] - The competitive landscape in the pool cleaning robot industry is concentrated, with a lack of innovation providing opportunities for Chinese brands to gain market share, as evidenced by a significant increase in their presence on platforms like Amazon [5] - The report recommends several companies in the home appliance sector, including Gree Electric, Midea Group, and Ecovacs, as potential investment opportunities [5][43] Group 3: Textile and Building Materials - The report indicates that the company achieved a revenue of 1.9 billion yuan in Q1 2025, reflecting a 13% year-on-year increase, driven by increased sales orders [15] - The company is expanding its overseas e-commerce business and has established strategic partnerships to enhance its international presence [15][25] - The report maintains a "buy" rating for the company, projecting net profits of 1.6 billion, 1.9 billion, and 2.4 billion yuan for 2025-2027 [15][25]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [5][17]. Core Insights - The company achieved a revenue of 190 million in Q1 2025, a year-on-year increase of 13%, while the net profit attributable to the parent company was 23 million, down 1% year-on-year. For 2024, the company is projected to achieve a revenue of 820 million, up 28% year-on-year, with a net profit of 120 million, up 34% year-on-year [1]. - The company has a strong order backlog of 2-3 months, indicating robust demand and the ability to dynamically adjust production capacity based on orders [1]. - The company has successfully expanded its global sales network, particularly in North America and Europe, leading to a significant increase in revenue from regions outside mainland China, which grew by 48% year-on-year [2]. - The company is enhancing its brand marketing capabilities and expanding its marketing channels, including the establishment of overseas warehouses to improve logistics efficiency and customer service [3]. Financial Performance - The company's revenue is expected to grow from 637.33 million in 2023 to 1,663.08 million by 2027, with a compound annual growth rate (CAGR) of approximately 27.69% [10]. - The net profit attributable to the parent company is projected to increase from 91.14 million in 2023 to 242.05 million by 2027, reflecting a strong growth trajectory [10]. - The company's earnings per share (EPS) is expected to rise from 0.48 in 2023 to 1.26 in 2027, indicating improving profitability [10]. Strategic Initiatives - The company has completed the main construction of its "New Material Expansion Project" for building shading, which will support future sales growth by increasing production capacity [2]. - A stock incentive plan has been implemented to bind key personnel, with performance targets set for revenue growth over the next three years, reflecting confidence in the company's future performance [4].