Investment Rating - The report gives a "Buy" rating for the company, Hangya Technology (688510.SH), with a target price of 31.2 yuan based on a 40x valuation for 2026 [2][4][15]. Core Insights - Hangya Technology focuses on precision forging technology, specializing in key components for aircraft engines and medical orthopedic implants. The company has established a strong position in the aircraft engine parts sector since its listing on the Sci-Tech Innovation Board in 2020 [1][4][17]. - The company reported revenues of 530 million yuan and a net profit of 78 million yuan for the first three quarters of 2025, reflecting a year-on-year increase of 1.95% in revenue but a decrease of 16.04% in net profit [1][31]. - The demand for international commercial aircraft engines is increasing, and Hangya Technology has positioned itself advantageously to meet this demand by becoming a reliable supplier for major players like CFM [1][39][44]. Summary by Sections 1. Company Overview - Hangya Technology is centered on precision forging technology, focusing on critical components for aircraft engines and medical implants. The company has made significant advancements in manufacturing techniques since its establishment in 2013 [1][17][20]. 2. Market Demand and Positioning - The international commercial aircraft engine market is characterized by a few dominant players, with CFM leading in delivery volumes. Hangya Technology has successfully positioned itself as a key supplier amid supply chain disruptions [1][39][44]. - CFM is actively seeking domestic suppliers to alleviate supply chain pressures, which presents opportunities for Hangya Technology to expand its market share [1][45][47]. 3. Growth Drivers - The company is experiencing growth across multiple sectors, including domestic aircraft engines, gas turbines, and medical products. Collaborations with major clients like GE and domestic aerospace firms are expected to drive future revenue growth [1][2][11][57]. - The domestic aviation market is projected to grow significantly, with increasing demand for new aircraft, which will benefit Hangya Technology's operations [1][57][59]. 4. Financial Projections - Revenue forecasts for Hangya Technology indicate growth from 817 million yuan in 2025 to 1.512 billion yuan by 2027, with corresponding net profits expected to rise from 130 million yuan to 290 million yuan during the same period [2][15][31]. - The company's earnings per share (EPS) are projected to increase from 0.51 yuan in 2025 to 1.13 yuan by 2027, reflecting strong growth potential [2][15]. 5. Strategic Collaborations - Hangya Technology has established strategic partnerships with key industry players, enhancing its production capabilities and market reach. The collaboration with CFM and other international clients is expected to solidify its position in the market [1][49][54].