JC Interconnect(SZ:002530) Xin Lang Cai Jing·2025-08-29 02:40Core Viewpoint - The company is a leader in the domestic heat treatment industry and is divesting its tax services business to focus on its core operations. Established in 1988, it was one of the first manufacturers of specialized heat treatment equipment in China. In 2016, the company completed a major asset restructuring project, transitioning from a single heat treatment business to a dual-track development model of "internet tax services + heat treatment equipment manufacturing and services." By 2024, the company will complete the divestiture of its tax services business and fully concentrate on its heat treatment core business [1]. Industry Overview - Heat treatment is one of the four fundamental processes in the equipment manufacturing industry. It involves heating, holding, and cooling metal materials or workpieces to alter their internal structure and achieve desired properties. This process is widely used in various sectors, including automotive, motorcycle parts, machinery components (such as bearings, molds, fasteners), aerospace components, engineering machinery parts, new energy components, and machine tool components. The global heat treatment market reached a size of $105.4 billion in 2023, while the Chinese heat treatment market was approximately 113.7 billion yuan [1]. Emerging Opportunities - The rapid development of the humanoid robot industry is expected to generate new demand for heat treatment. Key components of humanoid robots, such as motors, reducers, and screws, require various heat treatment processes, including quenching, spheroidizing annealing, high-temperature aging, surface heat treatment, and stabilization heat treatment. The heat treatment equipment involved includes pit resistance furnaces, box resistance furnaces, and induction hardening machines. The growth of the humanoid robot industry is anticipated to drive a significant increase in demand for heat treatment services [2]. Company Strengths - The company has outstanding technical capabilities and has established extensive cooperative relationships with well-known clients. It is the only enterprise in the Chinese heat treatment industry to have won both the "National Manufacturing Single Champion Demonstration Enterprise" and the "National Science and Technology Progress Second Prize." With advanced manufacturing technology, a diverse product line, and a strong ability to respond quickly to customer needs, the company has built a large and high-quality customer base, including Schaeffler, NSK, SKF, and THK [2]. Financial Projections - The company is expected to achieve total revenues of 998 million yuan, 1.127 billion yuan, and 1.296 billion yuan in 2025, 2026, and 2027, respectively, with year-on-year growth rates of -21.2%, 13.0%, and 15.0%. The net profit attributable to the parent company is projected to be 91 million yuan, 127 million yuan, and 173 million yuan for the same years, with corresponding EPS of 0.12 yuan, 0.16 yuan, and 0.22 yuan. Based on the closing price on August 20, the PE ratios are expected to be 89.58, 64.54, and 47.19 times. As a leading enterprise in the heat treatment industry, the company is expected to benefit from the rising demand for heat treatment in emerging sectors like humanoid robots, leading to a "buy" rating [3].