Investment Rating - The investment rating for the company is "Buy" [1][5] - The previous rating was also "Buy" [1] Core Views - The report indicates that the company's fundamentals are in line with expectations, and the incremental demand for quartz fiber materials is promising [3] - The company is one of the few manufacturers globally capable of mass-producing quartz fiber, which is expected to break the overseas monopoly in the low dielectric electronic cloth market and provide technical support for domestic copper-clad board manufacturers [3][8] - The report maintains a "Buy" rating based on the anticipated growth in demand for quartz electronic cloth driven by AI infrastructure hardware upgrades [5] Summary by Sections Stock Performance - The company's stock has shown significant absolute performance with a 155.2% increase year-to-date and a 219.8% increase over the past 12 months [2] - The market price is currently at RMB 92.32, with a total market capitalization of approximately RMB 48.22 billion [1][2] Financial Projections - Revenue projections for the company show a growth from RMB 2,091 million in 2023 to RMB 5,202 million by 2027, with a notable growth rate of 75.4% in 2026 [7] - The estimated EPS is projected to increase from RMB 1.03 in 2023 to RMB 2.54 in 2027, reflecting a significant growth trajectory [7][10] Business Segments - The company reported a revenue of RMB 9.08 billion in the first half of 2025, with a gross margin of 49.2% [8] - The semiconductor segment is showing steady growth, while the aerospace segment is recovering, and the photovoltaic segment has seen a significant decline [8] - The quartz electronic cloth product is currently in the testing phase with clients, indicating potential for future revenue growth [8] Market Dynamics - The report highlights that the global switch market is transitioning from 200G/400G to 800G/1.6T, with significant demand expected for quartz electronic cloth [8] - The company is positioned to benefit from the competitive landscape shift in the low dielectric electronic cloth market, as it possesses the full production chain from quartz sand to quartz fiber [8]