Core Viewpoint - Tianqin Equipment's 2024 annual report shows significant growth in revenue and net profit, indicating strong performance in the military equipment sector driven by industry trends and improved market share [2][3]. Financial Performance - The company achieved operating revenue of 231 million yuan, a year-on-year increase of 49.14% [2]. - Net profit attributable to shareholders reached 41.68 million yuan, up 29.49% year-on-year [2]. - The net profit excluding non-recurring items was 38.75 million yuan, reflecting a growth of 44.68% [2]. Product Line Performance - Revenue from specialized protective devices was 206 million yuan, a year-on-year increase of 36.74% [3]. - Revenue from equipment components surged to 2.401 million yuan, with a remarkable growth rate of 742.57% [3]. Industry Context - The acceleration of national defense modernization is driving the upgrade of equipment and increasing demand for protective gear, benefiting Tianqin Equipment's main products [3]. - The overall market for equipment manufacturing is expanding due to sustained industry demand [3]. Technological Advancements - The company has a strong technical foundation in various areas, including engineering plastic formulation and composite material design [4]. - In 2024, Tianqin Equipment invested 8.147 million yuan in R&D and has accumulated 15 invention patents and 16 utility model patents [5]. Strategic Focus - The company aims to enhance product performance and quality while expanding into civilian protective fields to maintain long-term competitive advantages [5]. - Tianqin Equipment emphasizes collaboration with domestic research institutions to innovate and apply theoretical research to product development [5].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance [1][9]. Core Insights - The company is positioned as a leader in the non-cooling infrared industry, with a comprehensive layout across infrared, microwave, and laser technologies, which are expected to drive future growth [5][7]. - The company has demonstrated significant revenue and profit growth, with a compound annual growth rate (CAGR) of 50.99% in revenue from 2019 to 2023 and a CAGR of 25.15% in net profit during the same period [37]. - The report highlights the potential of the infrared, microwave, and laser markets, driven by defense modernization and increasing demand in civilian applications [5][8]. Summary by Sections 1. Company Overview - The company has evolved from a focus on infrared thermal imaging to a multi-dimensional perception framework, incorporating microwave and laser technologies [18][19]. - It has established a complete industrial chain in the infrared sector, covering everything from chips to complete systems [19][35]. 2. Infrared Market - The global special infrared market reached USD 10.795 billion in 2023, with continued growth expected due to defense modernization [5]. - The civilian infrared market reached USD 7.465 billion in 2023, with increasing penetration in security, industrial inspection, and automotive applications [5]. 3. Microwave and Laser Technologies - The microwave market is projected to reach RMB 56.5 billion by 2025, with a CAGR of 12.1%, driven by defense and communication needs [8]. - The laser market in China reached RMB 121 billion in 2023, with significant demand in precision manufacturing and optical communication [8]. 4. Financial Performance and Forecast - The company’s total revenue is forecasted to grow from RMB 4.316 billion in 2024 to RMB 6.652 billion in 2026, with net profit expected to increase from RMB 610 million to RMB 1.076 billion in the same period [6][9]. - The projected price-to-earnings (PE) ratios for 2024, 2025, and 2026 are 45, 31, and 26, respectively, indicating a favorable valuation compared to peers [9]. 5. Strategic Initiatives - The company has implemented stock incentive plans to enhance employee motivation and drive long-term growth [53]. - Continuous investment in research and development has been a priority, with R&D expenses increasing significantly from RMB 0.18 billion in 2016 to RMB 0.683 billion in 2023 [47].