KHtech(SH:603052) Xin Lang Cai Jing·2025-10-14 02:29Core Viewpoint - The company is positioned for growth through its functional components in the 3C and automotive sectors, with new opportunities in composite aluminum foil and optical modules, indicating a potential turning point in its main business [1][2][5]. Group 1: Functional Components - Functional components are critical non-standard parts that enhance product performance, impacting quality, reliability, and lifespan [2]. - The company’s products are categorized into battery components (3C and power batteries), structural components (3C products), and optical components (displays and chips) [2]. - The shipment volume of battery components is correlated with global lithium battery shipments, which are experiencing sustained high growth [2]. - The price of functional components is expected to recover alongside the rising prices of lithium batteries due to raw material cost increases [2]. - Demand for structural components is driven by increased shipments of mobile phones and PCs, influenced by AI, trade-in programs, and innovation cycles [2]. Group 2: Composite Aluminum Foil - Composite aluminum foil is a multifunctional material combining aluminum with other materials, offering high barrier properties and metal characteristics [3]. - The global market for composite aluminum foil is projected to grow from approximately 2 billion yuan in 2023 to over 24 billion yuan by 2026 [3]. - The company plans to issue 500 million yuan in convertible bonds to expand its composite aluminum foil production, with a total investment of 750 million yuan [3]. - The company has achieved stable mass production capabilities and has secured production capacity with leading 3C battery manufacturers [3]. - Two new composite aluminum foil battery mobile products are expected to launch between the second half of 2025 and the first half of 2026, with one already in mass production [3]. - Revenue projections for the composite aluminum foil project are estimated at 220 million yuan, 590 million yuan, and 750 million yuan for 2026, 2027, and 2028, respectively, contributing net profits of 77 million yuan, 207 million yuan, and 220 million yuan [3]. Group 3: Optical Modules - The AI-driven demand for optical communication devices is expected to grow significantly, with the CPO market projected to increase from 6 million USD in 2022 to 328 million USD by 2033 [4]. - The company has established a complete supply chain capability in the optical chip and module sector, covering design, wafer testing, and module packaging for 400G and 800G products [4]. - The first production line has a monthly capacity of 40,000 to 50,000 units, with plans for mass production to begin in the fourth quarter of 2025 [4]. - Revenue forecasts for the optical module business are expected to reach 120 million yuan, 430 million yuan, and 320 million yuan for 2025, 2026, and 2027, respectively, with gross margins of 25%, 35%, and 35% [5]. Group 4: Financial Projections - The company anticipates a turning point in its main business, with composite aluminum foil and optical module businesses expected to drive growth [5]. - Revenue projections for the company are estimated at 1.09 billion yuan, 1.8 billion yuan, and 2.18 billion yuan for 2025, 2026, and 2027, respectively, with net profits expected to reach 78 million yuan, 282 million yuan, and 405 million yuan [5]. - The target market capitalization is approximately 7.9 billion yuan, with a corresponding valuation of 28 times for 2026, leading to a target price of approximately 42 yuan per share [5].