Tianqin Equipment(SZ:300922) Shenwan Hongyuan Securities·2025-04-11 08:59Investment Rating - The report initiates coverage with a "Buy" rating for the company, identifying it as a core supplier of protective equipment for complete ammunition systems, benefiting from demand across multiple application areas [3][9]. Core Insights - The company specializes in the research, development, and production of protective products for defense equipment, with a strong foothold in the industry due to its deep technical accumulation and extensive application experience [18]. - The company has experienced a steady recovery in performance, with revenue and profit expected to grow significantly as customer demand rebounds and product deliveries increase [8][34]. - The report highlights three main advantages for the company: its strong market position due to the scarcity of competitors, the acquisition of Rongchuang Intelligent to enhance its metal processing capabilities, and its technological barriers that support cost reduction and efficiency improvements [8][9]. Summary by Sections 1. Core Supplier of Protective Equipment - The company focuses on protective products for defense equipment, with a diverse range of specialized protective devices and components serving multiple military branches [18][29]. - The company has a strong historical background, having been established in 1996 and evolving through various stages to become a leading player in the protective equipment sector [18][21]. 2. Demand Driven by Ammunition Systems - The stable growth of national defense budgets in China and the U.S. supports the overall high demand in the military industry, which is crucial for the company's growth [46][47]. - Increased frequency of live-fire training exercises is driving the demand for ammunition, which in turn boosts the need for protective equipment [46]. 3. Technological Strengths and Competitive Advantages - The company possesses strong technical capabilities, with its products designed to withstand extreme conditions, ensuring safety during the transport and storage of ammunition [30]. - The acquisition of Rongchuang Intelligent has strengthened the company's supply chain and cost control, while also enhancing its product offerings in metal protective devices [8][9]. 4. Financial Forecast and Valuation - The company is projected to achieve significant revenue growth, with estimated revenues of 422 million yuan in 2025, reflecting an 83.1% year-on-year increase [2]. - The expected net profits for 2025-2027 are forecasted to be 96 million, 170 million, and 283 million yuan, respectively, indicating a strong growth trajectory [2][9].