Orient Securities·2025-08-26 05:42Investment Rating - The report maintains a "Buy" rating for the company with a target price of 38.54 CNY, based on a 47 times price-to-earnings ratio for 2026 [3][5]. Core Views - The company has shown significant improvement in gross profit margins, with a second-quarter gross margin of 17.08%, up 1.38 percentage points from the previous quarter. This increase is attributed to enhanced operational strategies and R&D capabilities [11]. - The company is actively expanding its recycling capabilities in the rare earth materials sector, which is expected to reduce costs and increase profitability as demand for magnetic materials grows [11]. - The company has achieved breakthroughs in its surface coating technology, which is expected to further enhance product margins [11]. Financial Performance Summary - Revenue is projected to grow from 6,688 million CNY in 2023 to 17,882 million CNY by 2027, with a compound annual growth rate (CAGR) of approximately 36.6% [9]. - The net profit attributable to the parent company is expected to increase from 564 million CNY in 2023 to 1,399 million CNY in 2027, reflecting a significant growth trajectory [9]. - The earnings per share (EPS) are forecasted to rise from 0.41 CNY in 2023 to 1.02 CNY in 2027 [9]. Market Performance - The company's stock has shown strong performance, with a 254.2% increase over the past 12 months [6]. - The stock price as of August 25, 2025, was 36.36 CNY, with a 52-week high of 36.36 CNY and a low of 9.87 CNY [5].