Fuxin Technology(SH:688662) Orient Securities·2025-07-07 02:05Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 39.36 CNY based on a 48x PE valuation for 2025 [2][5][9]. Core Insights - The company is expected to achieve earnings per share of 0.82 CNY, 1.20 CNY, and 1.52 CNY for the years 2025, 2026, and 2027 respectively, reflecting an upward revision in revenue and gross margin forecasts [2][9]. - The Micro TEC product line is experiencing rapid growth, particularly in the communication sector, with a 140.8% year-on-year increase in sales revenue in 2024 [8]. - The company is expanding into the energy storage market, with its semiconductor thermoelectric cooling technology showing promise as a new growth driver [8]. Financial Forecasts - Revenue is projected to grow from 400 million CNY in 2023 to 973 million CNY in 2027, with a compound annual growth rate (CAGR) of 17.9% [4][11]. - Operating profit is expected to turn positive in 2024, reaching 151 million CNY by 2027, with significant growth rates in subsequent years [4][11]. - The gross margin is anticipated to improve from 24.7% in 2023 to 31.5% in 2027, indicating enhanced profitability [4][11]. Market Performance - The company's stock price as of July 4, 2025, was 35.41 CNY, with a 52-week high of 53.25 CNY and a low of 18.39 CNY [5]. - The company has a market capitalization of 3,125 million CNY [5]. Competitive Position - The company is one of the few in the industry that has mastered multiple preparation techniques for bismuth telluride-based semiconductor materials, enhancing its competitive edge [8]. - The ongoing investment in R&D is expected to further strengthen the company's core technology and product innovation capabilities [8].