HYATECH(SH:688510) GUOTAI HAITONG SECURITIES·2026-02-14 05:30Investment Rating - The report assigns a rating of "Accumulate" for the company [6]. Core Views - The company plans to issue convertible bonds to raise up to RMB 600 million for aviation engine capacity construction projects, reflecting strong market demand in the global aviation engine supply chain and the company's proactive expansion in both international and domestic markets [2][13]. - The company is expected to achieve continuous high-quality improvement in operational capabilities due to its focus on enhancing aviation engine production capacity [2][13]. Financial Summary - Total revenue is projected to grow from RMB 544 million in 2023 to RMB 1,411 million in 2027, with a compound annual growth rate (CAGR) of 27.1% [4]. - Net profit attributable to the parent company is expected to increase significantly from RMB 90 million in 2023 to RMB 279 million in 2027, reflecting a CAGR of 33.4% [4]. - Earnings per share (EPS) is forecasted to rise from RMB 0.35 in 2023 to RMB 1.08 in 2027 [4]. - The return on equity (ROE) is anticipated to improve from 8.6% in 2023 to 18.4% in 2027 [4]. Target Price and Valuation - The target price for the company has been raised to RMB 61.65, based on a price-to-earnings (PE) ratio of 76.48 times for 2026 [13]. - The current market price is within a 52-week range of RMB 14.92 to RMB 44.28, with a total market capitalization of RMB 11,492 million [7][8]. Business Development and Strategy - The company is leveraging advanced manufacturing techniques and strong customer relationships to expand its business, particularly in the aviation engine sector, where it supplies major global manufacturers [13]. - The company is also entering the orthopedic implant market, which is expected to see increased demand due to aging populations and rising joint replacement rates [13].