DKEM(SZ:300842) CMS·2026-01-15 13:33Investment Rating - The report upgrades the investment rating to "Strong Buy" for the company [4]. Core Views - The company is expected to experience performance elasticity driven by high copper paste and storage businesses, with a focus on its aerospace and space photovoltaic layout [7]. - The company anticipates a net profit loss of 200-300 million yuan for 2025, with a non-recurring net profit loss of 160-240 million yuan [1]. - The rapid increase in silver prices is expected to accelerate the replacement of precious metal pastes, with the company's high copper paste expected to see significant volume in 2026 [7]. - The acquisition of Sot has positioned the company as a global leader in photovoltaic paste market share, leveraging global customer advantages in new space photovoltaic scenarios [7]. - The semiconductor second curve is beginning to ramp up, with the storage chip business projected to generate approximately 500 million yuan in revenue for 2025 [7]. - The company is expected to achieve net profits of -250 million, 530 million, and 740 million yuan from 2025 to 2027, respectively [7]. Financial Data and Valuation - Total revenue is projected to grow from 9,603 million yuan in 2023 to 22,032 million yuan in 2027, with a compound annual growth rate (CAGR) of 155% in 2023 and 10% in 2027 [3][11]. - The company's net profit is expected to recover from a loss of 247 million yuan in 2025 to a profit of 740 million yuan in 2027 [3][11]. - The price-to-earnings (PE) ratio is projected to decrease from 30.4 in 2023 to 15.8 in 2027, indicating improved valuation over time [3][11]. - The return on equity (ROE) is expected to improve from -16.1% in 2025 to 32.7% in 2027 [11].