CCTC(SZ:300408) Hua Yuan Zheng Quan·2025-09-03 11:15Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown strong performance in its MLCC products, with a comprehensive product matrix that includes micro, high-capacity, high-reliability, high-voltage, and high-frequency series, leading to increased market recognition [7] - The demand for optical devices has risen due to the acceleration of global data center and AI server construction, contributing to sustained sales growth in related products [7] - Despite pressure on profit margins from rising raw material prices in the PKG and ceramic slurry segments, the company has managed to maintain a high growth rate in overall gross margin, achieving a gross margin of 42.74% in Q2 [7] - The company is actively responding to market changes by optimizing raw material procurement strategies and developing new specifications and applications [7] Financial Summary - Revenue projections for the company are as follows: - 2023: 5,727 million RMB - 2024: 7,375 million RMB (growth of 28.78%) - 2025E: 9,267 million RMB (growth of 25.66%) - 2026E: 11,450 million RMB (growth of 23.56%) - 2027E: 14,060 million RMB (growth of 22.79%) [6] - The projected net profit for the company is: - 2023: 1,581 million RMB - 2024: 2,190 million RMB (growth of 38.55%) - 2025E: 2,622 million RMB (growth of 19.69%) - 2026E: 3,278 million RMB (growth of 25.01%) - 2027E: 4,101 million RMB (growth of 25.13%) [6] - Earnings per share (EPS) are projected to be: - 2024: 1.14 RMB - 2025E: 1.37 RMB - 2026E: 1.71 RMB - 2027E: 2.14 RMB [6] - The company’s return on equity (ROE) is expected to improve from 11.03% in 2024 to 15.44% in 2027 [9]