东兴证券：东兴晨报-20250124

Core Insights - The report highlights Torch Electronics (火炬电子) as a leading enterprise in the MLCC (Multi-Layer Ceramic Capacitor) market, emphasizing its strong position in the military and high-end civilian sectors [2][4][5] - The company has a clear growth strategy focusing on three main segments: components, new materials, and international trade, with a notable increase in revenue from self-produced new materials [3][10] - The MLCC market is expected to experience steady growth, with China's MLCC market projected to reach 47.3 billion yuan by 2025, driven by rising demand in consumer electronics and AI servers [4][5] Company Overview - Torch Electronics has over 30 years of experience in the ceramic capacitor industry and is recognized for its R&D, production, and sales capabilities [2] - The company has established strong partnerships with various state-owned enterprises and has been involved in multiple national special research projects [2][3] - The revenue from electronic components, primarily capacitors, remains the main income source, although there has been a decline in overall revenue due to market demand slowdown in 2023 and early 2024 [3][4] Market Dynamics - The MLCC market is dominated by Japanese and Korean companies, with a significant trade deficit in MLCC imports in China, which is gradually decreasing [4] - The military MLCC market in China is projected to reach 5.1 billion yuan in 2024, supported by increased defense budgets and modernization efforts [5] - The report anticipates a recovery in the MLCC industry, with an expected shipment volume of 5.3 trillion units by 2025 [4] Financial Projections - The company is expected to see a recovery in its MLCC business, with revenue growth projected at -15.24% in 2024, followed by 23.84% and 18.19% in 2025 and 2026 respectively [11] - Net profit forecasts for the company are 306 million yuan in 2024, 417 million yuan in 2025, and 566 million yuan in 2026, indicating a positive growth trajectory [11] New Materials Segment - The company is developing high-performance ceramic fibers, which are crucial for the performance of ceramic matrix composites (CMC) used in aerospace applications [10] - The global market for CMC materials is expected to reach 9.04 billion USD by 2030, with a compound annual growth rate of 12.79% [10]