CASTECH(SZ:002222) HUAXI Securities·2025-09-25 08:23Investment Rating - The report assigns a "Buy" rating to the company, indicating a positive outlook for its stock performance [4][7][18]. Core Insights - The company has a strong position in the precision optics industry, with over 30 years of experience and a diverse product matrix, including LBO crystals, BBO crystals, and high-precision optical components [1][12]. - The establishment of a subsidiary, Zhiqi Photon Technology Co., focuses on the development and sales of ultra-precision optical components, which is expected to contribute significantly to revenue and profit in the future [3][12]. - The company is one of the few suppliers capable of providing a comprehensive range of products, including crystals, optical components, and laser devices, serving various industrial applications such as lasers, optical communications, and AR/VR [2][12]. Financial Projections - Revenue projections for 2025-2027 are estimated at 10.53 billion, 12.35 billion, and 14.41 billion yuan, representing year-on-year growth rates of 20.3%, 17.2%, and 16.7% respectively [4][18]. - Net profit forecasts for the same period are 2.71 billion, 3.23 billion, and 3.80 billion yuan, with growth rates of 24.0%, 19.1%, and 17.7% [4][18]. - The earnings per share (EPS) are projected to be 0.58, 0.69, and 0.81 yuan for 2025, 2026, and 2027 respectively [4][18]. Business Segments - The laser optical components segment is expected to generate revenues of 4.04 billion, 5.05 billion, and 6.32 billion yuan from 2025 to 2027, with a stable gross margin of 45% [13][17]. - The nonlinear optical crystal components segment is projected to achieve revenues of 2.54 billion, 2.74 billion, and 2.96 billion yuan, maintaining a gross margin of 76% [14][17]. - The laser device segment is anticipated to grow to 2.15 billion, 2.57 billion, and 2.96 billion yuan, with a gross margin of 30% [16][17].