Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 66.36 CNY, corresponding to a 42x PE for 2025 [2][4]. Core Views - The company is positioned to benefit from the increasing use of ceramic matrix composites (CMCs) in the aerospace industry, particularly in next-generation engines developed by GE and Pratt & Whitney, which are expected to enhance performance significantly [8]. - The establishment of a subsidiary, Shanghai Ruihua Sheng, aims to capitalize on key aerospace technologies, with the CMC business projected to become a second growth driver for the company [8]. - The stealth materials market presents substantial growth opportunities, with the company expected to benefit from increasing demand driven by new military aircraft production and upgrades in stealth technology [8]. Financial Forecast and Investment Recommendations - Revenue and gross margin adjustments have been made, with projected net profits for 2025 and 2026 revised to 432 million CNY and 589 million CNY, respectively, and a new estimate for 2027 at 758 million CNY [2]. - The company’s revenue is forecasted to grow from 917 million CNY in 2023 to 2,189 million CNY by 2027, reflecting a compound annual growth rate (CAGR) of approximately 24.8% [3]. - The gross margin is expected to stabilize around 50% in the coming years, with net profit margins projected to remain above 30% [3]. Key Financial Information - The company’s earnings per share (EPS) is projected to increase from 1.23 CNY in 2023 to 2.78 CNY in 2027 [3]. - The net asset return (ROE) is expected to improve from 8.4% in 2023 to 13.5% in 2027, indicating enhanced profitability [3]. - The price-to-earnings (PE) ratio is projected to decrease from 48.8 in 2023 to 21.6 in 2027, suggesting a more attractive valuation over time [3].