TORCH ELECTRON(SH:603678) Xin Lang Cai Jing·2025-09-09 06:31Core Viewpoint - The company has shown significant improvement in operational performance, with stable development in the new materials business [1] Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 1.772 billion yuan, a year-on-year increase of 24.20% [1] - The net profit attributable to shareholders reached 261 million yuan, reflecting a year-on-year growth of 59.04% [1] - The net profit excluding non-recurring gains and losses was 253 million yuan, up 62.71% year-on-year [1] Group 2: Investment Logic - In the components business, demand in 2025 is expected to recover compared to last year, leading to significant revenue improvement. The company has strong customer loyalty and a stable industry position in the military sector, indicating high certainty for future order growth [2] - The new materials business has achieved stable supply of products such as polycarbosilane and ceramic fibers, with a first-mover advantage in upstream materials for CMC. The demand for high-performance ceramic materials is expected to grow continuously, driven by advancements in domestic aerospace and military equipment [2] - The international trade business focuses on electronic component distribution, maintaining close cooperation with several well-known manufacturers. The demand for high-end capacitors is expanding due to the rapid development of automotive electronics and new energy sectors [2] Group 3: Profit Forecast and Investment Recommendation - The expected EPS for 2025, 2026, and 2027 are 1.10 yuan, 1.41 yuan, and 1.81 yuan per share, respectively. The company is projected to benefit from a new round of inventory replenishment and accelerated contributions from the new materials business [3] - Based on comparable company valuations, a PE ratio of 35 times for 2026 is suggested, corresponding to a reasonable value of 49.43 yuan per share, with a recommendation to "increase holdings" [3]