Core Viewpoint - Dongwu Securities initiates coverage on Juxing Technology, highlighting the company's strong business development and potential for continued high growth due to sufficient production capacity and ongoing business expansion [1] Company Overview - Juxing Technology, established in November 1996, specializes in the research, production, and sales of electrical contact products, including electrical contacts, components, and materials [1] - The company successfully listed on the Beijing Stock Exchange on November 11, 2024, becoming the first company from Wenzhou to do so [1] - In 2024, Juxing Technology achieved a net profit attributable to shareholders of 116 million yuan, representing a year-on-year increase of 51.12%, and in Q1 2025, the net profit reached 23 million yuan, up 44.97% year-on-year [1] Industry Insights - The electrical contact products industry has seen a compound annual growth rate (CAGR) of 10.98% from 2015 to 2023, with expectations for the industrial total output value to reach new highs in 2024 [2] - The low-voltage electrical appliance sector is expanding due to increased fixed asset investments and growing downstream market demands, with household appliance retail expected to exceed 900 billion yuan in 2024 [2] - The global industrial control and factory automation market is projected to surpass 300 billion USD by 2029, while China's new energy vehicle sales are expected to exceed 10 million units [2] Competitive Advantages - Juxing Technology has developed a unique technological advantage through nearly 30 years of industry focus and continuous innovation, holding 46 patents, including 9 invention patents as of 2024 [2] - The company maintains a high gross margin compared to peers, with strong customer relationships characterized by high stickiness due to customized product features [3] - The company raised a net amount of 244 million yuan to invest in three projects aimed at reducing labor costs and enhancing product quality, including an intelligent production line upgrade to increase capacity and market competitiveness [3]
产能充足，业绩有望继续高增 东吴证券首次覆盖电接触产品“小巨人”聚星科技