USC(SH:688403) China Post Securities·2025-10-22 09:31Investment Rating - The report maintains a "Buy" rating for the company [1][8] Core Insights - The company is strategically investing in DRAM storage packaging through direct and indirect investments in Xinfeng Technology, aiming to enhance its capabilities in advanced packaging for 3D DRAM chips [4][11] - The partnership with Huadong Technology is expected to leverage both companies' resources to expand the 3D DRAM packaging business, addressing the growing market demand driven by AI infrastructure [5][11] - The company anticipates revenue growth, projecting revenues of 1.78 billion, 2.05 billion, and 2.40 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 186.49 million, 247.75 million, and 316.55 million yuan for the same years [8][10] Company Overview - The latest closing price of the company's stock is 15.93 yuan, with a total market capitalization of 137 billion yuan and a debt-to-asset ratio of 30.3% [3][10] - The company holds a significant stake of 27.5445% in Xinfeng Technology after recent investments, which positions it to influence the operations of Xinfeng without consolidating it into its financial statements [4][11] Financial Projections - The company is expected to achieve a revenue growth rate of 21.22% in 2024, followed by 18.83% in 2025, and 14.93% in 2026 [10][13] - The projected earnings per share (EPS) are expected to increase from 0.19 yuan in 2024 to 0.37 yuan in 2027 [10][13]