Investment Rating - The report initiates coverage with a "Buy" rating for the company, setting a target price of 21.22 CNY per share based on a 30X PE for 2026 [5]. Core Viewpoints - The company has established comprehensive strategic partnerships with global clients such as PMI and Logitech, integrating multiple business segments including smart control components, innovative consumer electronics, health environment, and automotive electronics [3]. - The company has adopted an innovative UDM model, enhancing its competitive barriers through overseas capacity expansion and a dual strategy of "big triangle + small triangle" [3]. - The company plans to raise up to 800 million CNY through a private placement to fund the construction of manufacturing bases in Malaysia and Mexico, as well as to expand health environment product capacity and upgrade its R&D center [3]. - The HNB (Heated Not Burned) market remains robust, with PMI maintaining over 70% market share globally, and the company is expected to benefit from increased demand and a favorable supply chain position [3][4]. Summary by Sections 1. UDM System Achievements - The company has transitioned from a single product focus to a diversified growth strategy, leveraging its UDM model to enhance customer satisfaction and build strong partnerships with major clients [16][17]. - The UDM model integrates a unified management system with intelligent manufacturing, allowing for high flexibility and traceability, which improves client relationships [28][30]. 2. HNB Market Dynamics - The global shift towards new tobacco products is evident, with the HNB market expected to grow significantly, driven by consumer health concerns and PMI's established market position [40][43]. - PMI's early investments in HNB technology have created substantial barriers to entry for competitors, solidifying its market leadership [46][47]. 3. Diverse Business Growth - The company is experiencing growth across various segments, including innovative consumer electronics, automotive electronics, and health environment products, with strategic partnerships enhancing its market position [4][20]. - The automotive electronics sector is particularly promising, with the company entering the supply chains of major domestic new energy vehicle manufacturers [4][20]. 4. Financial Forecasts - Revenue projections for 2025-2027 are 4.498 billion CNY, 5.669 billion CNY, and 7.099 billion CNY, reflecting year-on-year growth rates of 25.91%, 26.03%, and 25.21% respectively [5][9]. - Net profit forecasts for the same period are 405 million CNY, 550 million CNY, and 703 million CNY, with corresponding growth rates of 61.09%, 35.75%, and 27.89% [5][9].