J-Micro(SZ:300819) GUOTAI HAITONG SECURITIES·2026-02-25 09:22Investment Rating - The report assigns a rating of "Buy" to the company with a target price of 62.85 CNY per share, while the current price is 53.38 CNY [5]. Core Insights - The company is a leader in the domestic ultra-fine fiber industry, transitioning its main business towards high-end industrial applications such as synthetic leather materials and cleanroom products, marking a value inflection point [2]. - The company has made significant advancements in solid-state battery technology and embodied intelligence, positioning itself to capture future growth opportunities [2]. Financial Summary - Total revenue is projected to be 685 million CNY in 2023, with a forecasted decline to 600 million CNY in 2024, followed by a gradual recovery to 749 million CNY by 2027 [4]. - Net profit attributable to shareholders is expected to rise from 74 million CNY in 2023 to 117 million CNY in 2027, reflecting a growth rate of 102.5% in 2023, followed by fluctuations in subsequent years [4]. - Earnings per share (EPS) is forecasted to increase from 0.50 CNY in 2023 to 0.79 CNY in 2027 [4]. Industry Overview - The company has established itself as a core supplier for international brands, leveraging over 20 years of experience in ultra-fine fiber material processing and application [15]. - The ultra-fine fiber market is characterized by its high absorption, softness, durability, and environmental friendliness, making it suitable for high-end applications in consumer electronics and automotive interiors [16][20]. Business Segments - Consumer Electronics: The company has successfully entered the Apple supply chain, with products used in iPhone and iPad accessories, and anticipates significant growth driven by new product launches in the foldable phone and VR markets [29][33]. - Cleanroom Materials: The company produces high-end cleanroom wipes essential for semiconductor manufacturing, with a market size of approximately 292.4 billion CNY in 2023, showing stable growth [36]. - Automotive Interiors: The company is positioned to benefit from the growing demand for high-end automotive interiors, having secured strategic investments from SAIC and passed stringent supplier certifications [42][44]. Future Opportunities - The company is exploring advanced technologies such as solid-state battery support membranes, which are expected to address industry challenges and tap into a market projected to reach 50 billion CNY by 2030 [50]. - The development of artificial muscle fibers in collaboration with research institutions aims to enhance robotics applications, potentially leading to significant performance improvements in future products [52].