TORCH ELECTRON(SH:603678) Tianfeng Securities·2025-05-05 14:42Investment Rating - The investment rating for the company is "Buy" with a target price set at 38 CNY, maintained for the next six months [7]. Core Views - The company reported a significant year-on-year growth in revenue and net profit for Q1 2025, with total revenue reaching 762 million CNY, up 16.96%, and net profit attributable to shareholders at 107 million CNY, up 43.6% [1]. - The company's self-produced components business generated revenue of 271 million CNY, accounting for 35.56% of total revenue, reflecting an 11.78% increase year-on-year. This growth is expected to continue due to the recovery of orders and the new equipment cycle initiated by the "14th Five-Year Plan" [2]. - The new materials segment achieved revenue of 72 million CNY, representing a remarkable growth of 176.69% year-on-year, driven by advancements in core products such as polycarbosilane and fiber materials [2]. - The company is positioned as a core supplier in the strategic ceramics materials market, which is anticipated to see accelerated penetration in new generation aerospace equipment, indicating a broad market opportunity [2]. Financial Summary - The company is projected to achieve net profits of 502 million CNY, 722 million CNY, and 905 million CNY for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 35.98, 25.02, and 19.96 [3]. - Revenue forecasts for the years 2025 to 2027 are 3.75 billion CNY, 5.00 billion CNY, and 6.45 billion CNY, with growth rates of 33.98%, 33.24%, and 28.93% respectively [4]. - The EBITDA for the same period is expected to be 903.76 million CNY, 1,184.80 million CNY, and 1,413.77 million CNY [4].