Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company is positioned as a leader in silicon carbide (SiC) substrates, which are critical for the AR glasses market, with a projected market space of 30 billion RMB in the long term [3][4] - The report highlights the significant advantages of SiC waveguides in AR applications, including improved color fidelity, reduced weight, and enhanced optical performance [3] - The anticipated cost reduction in SiC substrates is expected to drive AR glasses pricing down to 3,500 RMB, potentially leading to a market volume of 20 to 30 million units [3][4] Financial Projections - Total revenue is projected to grow from 1,250.70 million RMB in 2023 to 3,324.63 million RMB in 2026, reflecting a compound annual growth rate (CAGR) of approximately 40.16% [1][12] - The net profit is expected to turn positive by 2024, reaching 315.06 million RMB by 2025, with a significant growth rate of 76.21% [1][12] - The earnings per share (EPS) is forecasted to improve from -0.11 RMB in 2023 to 1.14 RMB in 2026 [1][12] Market Position and Competitive Landscape - The company is noted for its strategic collaborations with key players in the AR industry, enhancing its competitive edge [4] - The report emphasizes the company's unique position as a domestic leader in SiC substrates, which is expected to be a critical component in the expanding AR market [4]

Core Viewpoint - Silicon carbide (SiC) is a compound material composed of carbon and silicon, known for its high hardness and excellent physical and chemical properties, making it a key material for cost reduction and efficiency improvement across various industries [2] Group 1: Characteristics and Advantages of Silicon Carbide - SiC materials possess characteristics such as high pressure resistance, high frequency tolerance, high thermal conductivity, high temperature stability, and high refractive index, which are crucial for transforming the semiconductor industry and supplementing silicon-based technologies [2] - Compared to silicon-based semiconductors, wide bandgap semiconductors represented by SiC and gallium nitride (GaN) exhibit significant performance advantages from material to device level, including high frequency, high efficiency, high power, high pressure resistance, and high temperature tolerance [2] Group 2: Market Potential and Applications - SiC materials have vast market application potential in power semiconductor devices, radio frequency semiconductor devices, and emerging application fields, with significant usage in xEV, photovoltaics, energy storage systems, power grids, rail transportation, communication, AI glasses, smartphones, and semiconductor lasers [3] - The global penetration rate of SiC power semiconductor devices in the overall power semiconductor market increased from 1.1% in 2019 to 5.8% in 2023, with expectations to reach 22.6% by 2030 [4] Group 3: Growth Trends and Projections - From 2019 to 2023, the compound annual growth rate (CAGR) of global revenue from SiC power semiconductor devices in the xEV sector reached 66.7%, with a projected CAGR of 36.1% from 2024 to 2030, indicating continued leadership in market growth [4] - The photovoltaic storage, power grid, and rail transportation sectors also show strong growth momentum, with projected CAGRs of 27.2%, 24.5%, and 25.3% respectively during the forecast period [4]