Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1]. Core Views - The company, 聚星科技, is recognized as a "small giant" in the electrical contact products sector, with a strong emphasis on technological innovation that solidifies its industry position [1][12]. - The company has shown robust business development, with significant revenue growth projected in the coming years, driven by expanding market demand and effective cost management [1][30]. Summary by Sections Company Overview - 聚星科技 was established in November 1996, focusing on the R&D, production, and sales of electrical contact products, including contact tips, contact elements, and contact materials [12]. - The company became the first in Wenzhou to be listed on the North Exchange on November 11, 2024, marking a significant milestone [12]. Market Dynamics - The electrical contact products industry has been expanding, with a compound annual growth rate (CAGR) of 10.98% from 2015 to 2023, and the industrial output value is expected to reach new highs in 2024 [41]. - The low-voltage electrical appliance sector is also growing, driven by increasing fixed asset investments and rising household appliance market demands, with retail sales expected to exceed 900 billion yuan in 2024 [43][47]. Product Focus and Innovation - 聚星科技 emphasizes core product development and technological innovation, maintaining a leading gross margin in the industry and establishing strong customer relationships [1][21]. - The company has developed over ten types of electrical contact materials, enhancing its product performance and market competitiveness [22]. Financial Projections - The company forecasts a net profit of 1.30 billion yuan in 2025, 1.58 billion yuan in 2026, and 1.94 billion yuan in 2027, reflecting year-on-year increases of 12%, 21%, and 23% respectively [1][30]. - Revenue is projected to grow from 602.74 million yuan in 2023 to 1.86 billion yuan by 2027, with a significant year-on-year growth rate of 22.54% in 2023 and 66.17% in 2024 [1].