Grace(SH:603256) Xin Lang Cai Jing·2025-08-01 09:48Core Viewpoint - The report from Zhongyou Securities indicates that Honghe Technology's revenue growth is driven by capacity release, while the optimization of high-margin product structure contributes to profit enhancement [1] Revenue Growth - The company is expected to achieve a revenue of 835 million yuan in 2024, representing a year-on-year increase of 26.24% [1] - The growth is primarily attributed to the gradual recovery of the terminal market and the increase in market demand [1] Capacity Expansion - The fundraising project for the annual production of 50.4 million meters of high-end electronic-grade glass fiber cloth for 5G has been fully operational since 2023 [1] - The release of electronic cloth production capacity in 2024 is anticipated to further increase the company's market share in electronic cloth products [1] Market Demand - The demand for electronic cloth products is expected to grow significantly due to advancements in high-end markets such as 5G devices, mobile communications, cloud computing, big data, AI, the Internet of Things, new energy vehicles, smart manufacturing, and autonomous driving [1] Investment Rating - The company has been given a "Buy" rating in the initial coverage [1]