JSCQ(SH:688182) Xin Lang Cai Jing·2025-12-04 10:29Investment Highlights - The company is initiating coverage on Cankin Technology (688182) with an "Outperform" rating and a target price of 27.02 CNY, driven by the ongoing construction of 5G base stations and the expansion of application scenarios that create new demand [1] - The global market for dielectric waveguide filters is expected to grow at a compound annual growth rate (CAGR) of 15.5% from 2024 to 2033, benefiting the company as a leading domestic high-end electronic ceramic component manufacturer [1][2] - The company is optimistic about the development of new 5G application scenarios and the introduction of new HTCC customers, which sets it apart from market expectations [3] Product Development and Capacity Expansion - The company has developed eight ceramic formulation systems in the HTCC field and has completed the development and sampling of over ten types of HTCC packaging products, with a projected revenue growth of 330.01% year-on-year for the HTCC business in 2024 [2] - The production capacity is expected to exceed 750,000 units in 2024, representing a year-on-year increase of over nine times, which will gradually enhance performance as capacity is released [2] Profit Forecast and Valuation - The company forecasts earnings per share (EPS) of 0.31 CNY and 0.37 CNY for 2025 and 2026, respectively, with a CAGR of 58.9% from 2024 to 2026 [5] - Based on a 35 times price-to-earnings ratio for 2028, the target market value is estimated at 10.809 billion CNY, indicating an 11.66% upside potential from the current stock price [5]