Investment Rating - The report maintains a "Buy" rating for Tianqin Equipment (300922) with a target price of 42.00, compared to the last closing price of 27.62 [1]. Core Viewpoints - Tianqin Equipment is a leading domestic company in the equipment protection field, benefiting from the high prosperity of the ammunition industry chain [5][11]. - The company has a strong technical foundation and has been focusing on the research and production of specialized protective devices and equipment components for over 20 years [12][15]. - The company has established long-term cooperative relationships with major military groups, ensuring a steady stream of product orders due to the long service life of the equipment it supports [5][55]. Summary by Sections Company Overview - Tianqin Equipment specializes in the research, production, and sales of protective devices and equipment components, utilizing advanced polymer materials and composite materials [11][12]. - The company has developed a range of products that serve various military branches, including the Army, Navy, Air Force, and Rocket Force [11][12]. Product Development - The company has continuously expanded its product range from single-function protective devices to comprehensive protective products and equipment components [6][28]. - There is a robust pipeline of projects under development, which is expected to contribute to future revenue growth as new products are launched [6][28]. Financial Forecast - The projected net profits for 2025-2027 are 0.83 billion, 1.44 billion, and 2.08 billion respectively, with corresponding EPS of 0.52, 0.91, and 1.31 [6][8]. - The company anticipates significant revenue growth, with a forecasted increase in operating income from 230.54 million in 2024 to 1,012.04 million in 2027 [8][25]. Market Dynamics - The global military expenditure is expected to rise significantly due to ongoing geopolitical tensions, which will drive demand for ammunition and related protective equipment [47][54]. - The company is well-positioned to benefit from this trend, as it supplies essential protective devices for key military equipment [55][59].

Investment Rating - Industry rating is maintained at "Outperform the Market" [5] Core Viewpoints - The ammunition supply chain is experiencing an upward trend due to increased procurement orders from European countries, with Sweden's recent order of $525 million marking its largest artillery ammunition order since the 1980s. Poland plans to increase its large-caliber ammunition production by 39 times by 2028, aiming for a daily production of 1,000 rounds and an annual output of approximately 200,000 rounds [2][3] - The demand for low-cost, precision-guided, and modular missiles and ammunition is increasingly prominent, with the U.S. defense budget request for FY2025 allocating $29.8 billion for missiles and ammunition, reflecting a compound annual growth rate of 13.65% from 2022 to 2025. The sector remains in a phase of sustained high prosperity [3] - The ammunition supply chain is expected to benefit from long-term high demand driven by real combat training consumption and geopolitical conflicts, while the supply side is likely to see new models entering mass production, leading to a "double hit" in performance and valuation for the industry [3] Summary by Relevant Sections - **Ammunition Supply Chain**: European countries are initiating a new round of ammunition stockpiling, with significant orders from Sweden and Poland indicating a robust growth trajectory for the ammunition industry [2] - **U.S. Defense Budget**: The U.S. defense budget for FY2025 highlights a strong commitment to missile and ammunition development, with a notable increase in funding [3] - **Investment Opportunities**: Companies to watch include Changcheng Military Industry, Guangdong Hongda, and others involved in various segments of the ammunition supply chain [4]