Investment Rating - The investment rating for the company is "Buy" and is maintained [2]. Core Viewpoints - The company, Tianqin Equipment, has evolved from a single protective function product to a comprehensive range of defense products and equipment components, with a significant focus on ammunition packaging and protection [4][12]. - The company is expected to benefit from the increasing demand for ammunition packaging, with a projected market space of approximately 6 billion yuan in China [4][58]. - The company is expanding into the missile packaging sector, which is anticipated to provide long-term growth drivers [4][55]. Summary by Sections 1. Core Supplier in Equipment Protection - Tianqin Equipment was founded in 1996 and went public in 2020, focusing on protective devices for ammunition and related equipment [4][12]. - The main products include specialized protective devices, which accounted for 89% of revenue in 2024, with major clients being military industrial groups [18]. - The company has shown rapid growth in the past three years, with operating cash flow consistently exceeding net profit [21]. 2. Benefiting from Ammunition Demand - The ammunition packaging is crucial for ensuring the reliability and safety of ammunition storage and usage, with the market space for ammunition packaging in China estimated at 6 billion yuan [4][29]. - The company’s revenue from packaging boxes was 206 million yuan in 2024, with a gross margin of 32.63% [39]. - The domestic ammunition sector is expected to grow rapidly, driven by increased training intensity and military export demands [41]. 3. Expansion into Missile Packaging - The missile packaging market is projected to be significantly larger than the ammunition packaging market, with estimates suggesting a potential market size of 20-30 billion yuan [55]. - The company is actively developing various missile protective boxes and integrated launch tubes, with several projects already completing prototype development [53][55]. - The expansion into missile packaging is expected to provide new revenue growth points for the company [4][55]. 4. Profit Forecast and Investment Recommendations - The company is projected to achieve net profits of 0.85 billion, 1.46 billion, and 2.05 billion yuan from 2025 to 2027, with growth rates of 104%, 72%, and 40% respectively [4][58]. - The current price-to-earnings ratios are estimated at 37, 21, and 15 times for the respective years [4][58].

Investment Rating - The report maintains a "Buy" rating for the company [2]. Core Views - The company, Tianqin Equipment, has evolved from a single protective function product to a comprehensive defense product supplier, with a significant focus on ammunition packaging and protective devices [4][12]. - The company is expected to benefit from the increasing demand for ammunition packaging, with a projected market space of approximately 6 billion yuan in China [4][58]. - The company is expanding into missile packaging, which is anticipated to provide long-term growth drivers [4][55]. Summary by Sections Company Overview - Tianqin Equipment was founded in 1996 and went public on the ChiNext board in 2020, initially focusing on moisture-proof seals for ammunition and gradually expanding its product range to include various defense equipment components [4][12]. - The company's main products include specialized protective devices and equipment components, with specialized protective devices accounting for 89% of revenue in 2024 [18]. Financial Performance - The company's performance bottomed out in 2022, with a recovery and growth expected in 2023 and 2024. The projected net profit for 2024 is 42 million yuan, a 29% increase year-on-year [4][21]. - The company has maintained positive net profits and strong operating cash flow, with cash flow consistently exceeding net profit [21]. Market Opportunity - The ammunition packaging market in China is estimated to be around 120 billion yuan, with packaging costs accounting for 5% of total ammunition costs, leading to a market space of approximately 6 billion yuan [4][30]. - The company is well-positioned to benefit from increased ammunition consumption due to heightened training intensity and military export trends [41]. Growth Strategy - The company is actively developing missile packaging solutions, which are expected to have a higher value and larger market potential compared to traditional ammunition packaging [55]. - Ongoing projects include various missile protective cases and integrated storage and launch systems, with several prototypes already completed [53][55]. Profit Forecast and Investment Advice - The company is projected to achieve net profits of 85 million, 146 million, and 205 million yuan for the years 2025, 2026, and 2027, respectively, with growth rates of 104%, 72%, and 40% [4][58]. - The current price-to-earnings ratios are estimated at 37, 21, and 15 times for the years 2025, 2026, and 2027, respectively, supporting the "Buy" rating [4][58].