Investment Rating - The report maintains a "Strong Buy" rating for the company [3] Core Views - The company has shown rapid revenue and profit growth in 2024 and Q1 2025, driven by strong demand for 400G and 800G optical modules, with 2024 revenue reaching 23.862 billion yuan (up 122.64% YoY) and net profit of 5.171 billion yuan (up 137.93% YoY) [1][6] - The gross margin has been improving, reaching 33.81% in 2024 and 36.70% in Q1 2025, attributed to a higher proportion of high-end products and cost reductions [6][8] - The company is expected to see significant deployment of 800G products in 2025, with 1.6T products gradually ramping up in Q2 and Q3 [1][2] Financial Performance - In 2024, the company achieved a revenue of 238.62 billion yuan and a net profit of 51.71 billion yuan, with a significant increase in operating cash flow, which reached 31.65 billion yuan (up 66.81% YoY) [6][8] - The company’s overseas revenue in 2024 was 20.716 billion yuan (up 128.32% YoY), indicating strong international market performance [2][6] - The projected net profits for 2025, 2026, and 2027 are 82.77 billion yuan, 101.34 billion yuan, and 118.14 billion yuan, respectively, with corresponding PE ratios of 11.1, 9.1, and 7.8 [6][7] Market Conditions - The domestic market is experiencing increased demand for 400G optical modules, with several CSP customers showing significant growth in bidding volumes [2][6] - The supply side is expected to improve as overseas optical chip manufacturers expand capacity, alleviating the tight supply of EML chips [2][6] - The company has established a comprehensive overseas delivery capability and has made arrangements to mitigate potential trade friction impacts [6][8]

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [6]. Core Views - The company is a leader in the copper alloy segment, with expected growth driven by aerospace, medical, and semiconductor sectors [6][8]. - The company has shown steady growth in historical performance, with a projected revenue increase of 12.78% year-on-year for 2024, reaching 1.33 billion yuan [8][10]. - The company is actively expanding its production capacity and product offerings, which is anticipated to lead to accelerated revenue growth [11][42]. Summary by Sections 1. Company Overview - The company, established in 1995, has developed into a leader in high-strength and high-conductivity copper alloys and medium-high voltage contact materials, with a strong market position and recognition for its products [21][27]. 2. Financial Performance - From 2020 to 2023, the company's revenue and net profit have grown at a CAGR of 20.11% and 23.58%, respectively [8]. - For 2024, the company expects to achieve a revenue of 1.33 billion yuan and a net profit of 117 million yuan, reflecting year-on-year growth rates of 12.78% and 19.21% [10][11]. 3. Traditional Business Strengths - The company benefits from a strong position in traditional business areas, including traction motor end rings and high-end connector contacts, which are expected to see increased demand due to infrastructure projects [9][13]. - The company is the global leader in medium-high voltage contact materials, addressing domestic needs and exporting to international markets [33]. 4. Emerging Business Segments - The company is making significant progress in emerging sectors such as aerospace and medical imaging, with new products expected to contribute to revenue growth [4][14]. - Projects like the liquid rocket engine thrust chamber and CT/DR tube components are set to benefit from increasing market demand and production capacity expansions [15][39]. 5. Profit Forecast and Valuation - The company is projected to achieve net profits of 1.17 million yuan in 2024, 1.56 million yuan in 2025, and 2.10 million yuan in 2026, with respective growth rates of 19.21%, 33.44%, and 33.94% [10][11]. - The estimated P/E ratios for 2024, 2025, and 2026 are 74.27, 55.66, and 41.55, respectively, indicating a favorable valuation outlook [11].