GOLDEN SUN(300606) Shanghai Securities·2024-10-15 03:41Investment Rating - The report initiates coverage with an "Accumulate" rating for the company [2]. Core Views - The company is positioned to benefit from the growing application of titanium alloy components in consumer electronics, leading to significant revenue and profit growth. The lightweight, high-strength, and corrosion-resistant properties of titanium alloys meet consumer demands for thin and durable 3C products. Major 3C manufacturers like Apple and Xiaomi have started incorporating titanium alloys into their products, which presents a substantial opportunity for the company [2][3]. - In 2023, the company achieved a revenue of 565 million yuan, a year-on-year increase of 42.99%, and a net profit of 52.33 million yuan, reflecting a year-on-year growth of 102.51% [2][12]. - The company is also focusing on its core business of polishing and grinding, with advancements in semiconductor-grade polishing liquids, which are critical for the semiconductor manufacturing process. The domestic semiconductor materials market is expected to expand, providing further growth opportunities for the company [2][24][30]. Summary by Sections 1. Focus on Grinding and Polishing Core Business - The company has established itself as a leader in the coated abrasive industry and is expanding into intelligent manufacturing. It has developed a comprehensive service system for precision polishing, catering to various sectors including automotive, consumer electronics, and renewable energy [6][8]. - The stable shareholding structure and the strategic roles of subsidiaries enhance the company's operational capabilities and market influence [9]. 2. Precision Polishing Comprehensive Service Provider - The company offers a diverse range of polishing materials, including water-resistant sandpaper and polyester film sandpaper, which are widely used across multiple industries such as automotive and aerospace [17][18]. - The company has made significant strides in the semiconductor-grade polishing liquid sector, completing performance validations and achieving production capabilities for various semiconductor materials [24][30]. 3. Active Optimization of Industry Chain Layout - The company is capitalizing on the mild recovery in the consumer electronics market, with expectations for rapid growth in precision structural components due to the increasing demand for new technologies and materials [3][12]. - The company is enhancing its product matrix by focusing on high-end intelligent CNC machine tools and expanding its application scenarios [3][12]. 4. Financial Forecast and Investment Recommendations - The company is projected to achieve net profits of 64 million yuan, 100 million yuan, and 135 million yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 46, 30, and 22 times [2][12].