Core Insights - The visit of the research team from the China Engineering Science and Technology Innovation Strategic Research Institute to 聚光科技 highlights the national focus on the development of high-end scientific instruments and recognizes the company's achievements in original innovation and technology commercialization [1][2]. Industry Overview - High-end analytical instruments are essential tools for modern scientific innovation, significantly impacting over 80% of industrial R&D efficiency and 70% of core technology breakthroughs, making their development a key indicator of national scientific competitiveness [2]. - Despite rapid growth in the domestic analytical instrument industry, there remains a significant gap compared to leading countries like the US, Germany, and Japan, with nearly 90% of high-end instruments being imported, indicating a pressing need for domestic alternatives [2]. Company Positioning - 聚光科技, as a leading enterprise in the high-end analytical instrument sector, benefits from national strategic planning and support, positioning itself well to tackle key technological challenges and accelerate the process of domestic substitution [2][3]. - The company has established a comprehensive innovation chain and industrialization system that aligns with national strategies for high-end instruments, providing a competitive advantage in fulfilling national strategic tasks and seizing industry development opportunities [2][3]. Technological Advancements - 聚光科技 has developed a leading technology and product system in mass spectrometry, chromatography, and spectroscopy, serving various industries such as environmental monitoring, semiconductor, and life sciences [3]. - The company’s EXPEC 7350s ICP-MS/MS system has made significant inroads into the semiconductor detection field, successfully implementing solutions for trace impurity analysis across critical manufacturing processes [4][5]. Market Potential - The semiconductor industry presents vast market potential, with a strong demand for domestic alternatives in precision detection technologies, particularly in impurity analysis critical to integrated circuit manufacturing [3][4]. - 聚光科技's AMC-1000 micro-pollutant gas monitoring system enhances detection efficiency and flexibility, addressing the needs of semiconductor production environments [5].

Core Viewpoint - HeXin Instruments reported a significant decline in revenue for the first half of 2025, but managed to reduce net losses through organizational optimization and cost control [1][2]. Group 1: Financial Performance - In the first half of 2025, HeXin Instruments achieved revenue of 0.53 billion, a year-on-year decrease of 48.9%. However, net losses narrowed to 17.46 million, a year-on-year reduction of 20.86% [1][2]. - In Q2 2025, the company reported revenue of 21.44 million, down 62.7% year-on-year and 33.2% quarter-on-quarter. The net profit attributable to shareholders was a loss of 10.39 million, reflecting a year-on-year decline of 47.6% and a quarter-on-quarter decline of 47.0% [2]. Group 2: Strategic Initiatives - The company is accelerating a major asset restructuring, planning to acquire 56% of Shanghai Liangxi Technology to expand its industrial chain and enter new fields such as food safety and healthcare [2][4]. - The acquisition of Liangxi Technology, which specializes in quantum computing patents and low-temperature signal measurement devices, is expected to enhance HeXin's capabilities in advanced scientific instruments [4]. Group 3: Diversification Efforts - HeXin Instruments is focusing on environmental monitoring, particularly in PM2.5, VOCs, and ozone monitoring, while also launching new products for water quality monitoring and agricultural testing [5]. - The company aims to expand into the medical health sector with microbiological detection mass spectrometers, addressing clinical diagnostic needs [5]. - The chairman emphasized a three-pronged approach of expanding business, enhancing capabilities, and simplifying management to tackle challenges in a market dominated by international giants [5].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [6][5] Core Views - The company is a global leader in optical components and products, having established a strong market position in mobile camera lenses and automotive optical modules [5][39] - The company has a diversified product portfolio, including optical components, optoelectronic products, and optical instruments, with a focus on high-end applications [5][27] - The report forecasts significant revenue growth, with expected revenues of 434 billion, 456 billion, and 479 billion CNY for 2025, 2026, and 2027 respectively, alongside a projected net profit of 34 billion, 39 billion, and 44 billion CNY for the same years [6][5] Summary by Sections 1. Company Overview - Founded in 1984, the company has evolved from a local enterprise to a global leader in optical manufacturing, listed on the Hong Kong Stock Exchange since 2007 [16][5] - The company has implemented a "famous supporting role" strategy, focusing on eight major applications, and has established a stable partnership with global clients [36][39] 2. Market Position and Product Leadership - The company holds the number one global market share in mobile camera lenses at 30.8% and in mobile camera modules at 12.1% as of 2024 [52][39] - The automotive lens segment has also seen the company achieve the highest global market share, with significant growth in automotive camera modules and advanced driver-assistance systems (ADAS) [66][67] 3. Financial Projections - Revenue and profit forecasts indicate a recovery from previous downturns, with expected revenue growth rates of 21% in 2024 and 13% in 2025 [6][5] - The projected price-to-earnings (PE) ratio for 2025 is 19X, which is lower than the average PE of comparable companies at 24X, suggesting potential undervaluation [6][5] 4. Technological Advancements - The company has maintained a competitive edge through continuous innovation in optical technologies, particularly in high-end mobile and automotive applications [57][39] - The report highlights the successful mass production of advanced optical modules, including periscope and large-format modules, which are critical for future growth [57][59] 5. Global Expansion and Production Capabilities - The company has established multiple production bases both domestically and internationally, enhancing its manufacturing capabilities and service delivery [48][51] - The expansion into markets such as India and Vietnam has positioned the company to better serve global clients and adapt to local demands [48][51]