Core Viewpoint - The company, Jiachi Technology, is a leading provider of Electromagnetic Functional Materials and Structures (EMMS) in China, showcasing significant industry advantages and expertise in engineering [1] Group 1: Company Overview - Jiachi Technology has extensive engineering experience and a deep understanding of the EMMS field, which provides it with a first-mover advantage [1] - The company's EMMS products and services exhibit notable industry advantages in areas such as "low-frequency ultra-wideband," "multi-spectrum compatibility," and "thin and lightweight" designs [1] Group 2: Technological Innovation - The company adheres to a "technology-based" approach, focusing on fundamental research and has undertaken multiple national and provincial key scientific research projects [1] - Jiachi Technology has received numerous prestigious awards, including one second-class National Science and Technology Progress Award, one first-class National Defense Science and Technology Progress Award, two first-class Sichuan Provincial Science and Technology Progress Awards, and one special prize from the Aviation Industry Corporation of China, totaling nearly ten significant national and provincial scientific achievement awards [1]

Core Viewpoint - The report highlights that Jiachi Technology has established a complete closed loop in the field of electromagnetic functional materials and structures (EMMS), covering stealth coating materials, stealth structural components, and electromagnetic compatibility materials [1] Group 1: Business Overview - The company has significant advantages in core technologies such as low-frequency ultra-wideband, multi-spectrum compatibility, and thin lightweight materials [1] - Products have been successfully mass-produced for key models of China's fourth and fifth-generation fighter jets [1] - The company is actively extending its business boundaries by laying out new-generation electromagnetic anechoic chambers and electromagnetic measurement and control services, accelerating its evolution into an integrated platform enterprise of "materials-structures-testing" [1] Group 2: Competitive Advantages - The company possesses self-research and production capabilities for key absorbers and has built a dual-track supply chain system of "main + substitute" to effectively control cost fluctuations [1] - Despite the expansion of revenue scale, the company maintains a high and stable gross margin due to its core technological barriers and supply chain resilience [1] Group 3: Financial Projections - The projected net profit attributable to the parent company for 2025, 2026, and 2027 is expected to be 549 million, 848 million, and 964 million yuan, respectively [1] - The expected EPS for the same years is 1.37, 2.12, and 2.41 yuan per share, corresponding to current price-earnings ratios of 49.2, 31.8, and 28.0 times, respectively [1] - The report initiates coverage with a "Buy" rating [1]

Group 1 - Chengdu Jiachi Electronic Technology Co., Ltd. received a special award from China Aviation Industry Corporation for its contribution to the "XXX Key Technology and Application" project in the field of Electromagnetic Functional Materials and Structures (EMMS) [1] - The company has previously won multiple national and provincial awards, including a second-class National Science and Technology Progress Award and a first-class National Defense Science and Technology Progress Award [1] - The company aims to continue its focus on the EMMS field, emphasizing technology-driven innovation and self-reliance in scientific research [1] Group 2 - The company will have 103,866,750 shares of restricted stock listed for trading, which represents 25.97% of the total share capital [19] - The listing date for the restricted shares is set for December 5, 2025 [19] - The total share capital after the initial public offering (IPO) is 400,010,000 shares, with 364,299,425 shares subject to restrictions [9][19]

Core Viewpoint - The company, Jiachitech (688708.SH), has been awarded a special prize by the Aviation Industry Corporation of China for its contribution to the "XXX Key Technologies and Applications" project, highlighting its advancements in electromagnetic functional materials and structures [1] Group 1: Awards and Recognition - The company received a special award from the Aviation Industry Corporation of China for its project, showcasing its significant contributions to technological progress in the field [1] - Previously, the company has also been recognized with multiple prestigious awards, including a second-class National Science and Technology Progress Award, a first-class National Defense Science and Technology Progress Award, and two first-class Sichuan Provincial Science and Technology Progress Awards [1] Group 2: Commitment to Innovation - The company aims to continue its focus on the EMMS (Electromagnetic Functional Materials and Structures) field, emphasizing a technology-driven approach and fundamental research [1] - The company is committed to independent innovation and breaking through key technologies, aligning with the national goal of technological self-reliance and strength [1]

Core Viewpoint - The company, Jiachitech (688708.SH), has received a special award from the Aviation Industry Corporation of China for its contribution to the "XXX Key Technologies and Applications" project, highlighting its advancements in electromagnetic functional materials and structures [1] Group 1 - The award reflects the company's significant contributions to scientific and technological progress in the EMMS field and its role in completing major engineering projects [1] - The company has previously received multiple prestigious awards, including a second-class National Science and Technology Progress Award, a first-class National Defense Science and Technology Progress Award, and two first-class Sichuan Provincial Science and Technology Progress Awards [1] - The company aims to continue its focus on the EMMS field, emphasizing "technology-based" and "fundamental research," while striving for continuous innovation and breakthroughs in key technologies [1]

Core Viewpoint - Jiachitech (688708.SH) has faced operational challenges post-IPO, with a significant drop in net profit despite revenue growth in the first three quarters of 2024. The company operates in the military sector, which has led to stock price fluctuations, including a peak increase of over 91% from April to September 2024 [3][4]. Financial Performance - In the first three quarters of 2024, Jiachitech reported revenue of 619 million yuan, a year-on-year increase of 5.21%, while net profit decreased by 22.39% to 249 million yuan. The non-recurring net profit also fell by 27.56% to 222 million yuan [3][4]. - Quarterly performance showed a significant recovery in Q3, with revenue reaching 341 million yuan, a 54.53% increase year-on-year, while net profit rose by 24.38% to 135 million yuan. However, Q1 and Q2 saw declines of 52.70% and 7.27% in revenue, respectively [4][5]. Business Segments - Jiachitech specializes in electromagnetic functional materials and structures (EMMS), focusing on three main areas: stealth functional structural components, next-generation electromagnetic anechoic chambers, and stealth maintenance products [4]. - The company has secured over 100 million yuan in orders for the new generation of electromagnetic anechoic chambers, with multiple projects currently underway [5]. Research and Development - R&D investment has significantly increased, with 125 million yuan spent in the first three quarters of 2025, a 107.22% increase year-on-year. This investment is aimed at new areas such as stealth functional structural components and electromagnetic measurement and control [6]. - The company has applied for 125 patents, with 32 granted, indicating a strong focus on innovation and technology development [6]. Market Dynamics - Jiachitech's stock has attracted interest from various funds, with significant changes in the top ten circulating shareholders by the end of Q3 2024, indicating fluctuating investor confidence [8]. - The company aims to improve profitability through continued breakthroughs in new fields, particularly in stealth coating materials, which have seen applications in aviation and military sectors [7].

Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, but anticipates growth in the second half due to a strong order backlog and increased production capacity [1][2][3]. Financial Performance - In H1 2025, the company achieved revenue of 279 million yuan, a year-on-year decrease of 24.33%, and a net profit of 113 million yuan, down 46.47% [1][2]. - The second quarter of 2025 saw a recovery in product delivery, with revenue reaching 213 million yuan, showing a quarter-on-quarter increase of 225.98% [3]. - The sales revenue from stealth structural components grew significantly, reaching 199 million yuan, accounting for 71.46% of total sales [3]. Research and Development - The company increased R&D investment, with H1 2025 R&D expenses amounting to 71 million yuan, an increase of 88.78% year-on-year, representing 25.47% of H1 revenue [2][4]. - Key R&D projects include new stealth structural components and next-generation electromagnetic measurement and control technologies [2]. Profitability - The gross profit margin for H1 2025 was 73.80%, a decrease of 4.49 percentage points, while the net profit margin was 40.63%, down 16.80 percentage points [4]. - The company's expense ratios included a period expense ratio of 36.92%, with R&D expenses constituting 25.47% of revenue [4]. Incentives and Growth Strategy - The company announced a stock incentive plan to grant 1.48375 million restricted shares, aimed at attracting and retaining talent, which is crucial for future performance [5]. - The company is advancing its fundraising projects, including the construction of a manufacturing base for electromagnetic functional materials, with a total planned investment of 618 million yuan [6]. Future Outlook - The company is transitioning into a comprehensive development phase, with projected net profits of 622 million yuan, 823 million yuan, and 1.059 billion yuan for 2025-2027, corresponding to EPS of 1.56, 2.06, and 2.65 yuan [6].

Core Viewpoint - The report highlights the steady development of the company, Jiachitech (688708), in the EMMS (Electromagnetic Functional Materials and Structures) sector, emphasizing its dual focus on military and civilian applications, and the importance of stealth technology in modern weaponry [1][7]. Financial Performance - In 2024, the company achieved a revenue of 957 million yuan, a decrease of 2.45%, and a net profit attributable to shareholders of 517 million yuan, down 8.23% [2][3]. - The gross margin was 76.84%, with a slight decrease of 0.07 percentage points, while the net margin fell to 54.06%, down 3.41 percentage points [3]. - In Q4 2024, revenue surged to 368 million yuan, an increase of 34.98%, and net profit rose to 197 million yuan, up 11.71% [3]. Product Development and Market Position - The company is a leading provider of EMMS in China, focusing on stealth technology and electromagnetic compatibility materials, with products primarily used in the aviation sector [2][5]. - New product developments include next-generation stealth structural components and key absorbing materials, which have shown significant advantages in low-frequency performance and operational costs [2][5]. - The company is expanding its market presence in civilian sectors, including consumer electronics and automotive electronics, to enhance its business layout [2][8]. Research and Development - The company has a strong emphasis on R&D, with a research expense ratio of 9.15%, reflecting ongoing investment in innovation [4][5]. - The proportion of R&D personnel increased to 33.18%, indicating a commitment to enhancing technical capabilities [5]. Capital and Investment - The company raised approximately 1 billion yuan through its IPO, which will be used for expanding production capacity and enhancing R&D capabilities [6]. - The construction of a manufacturing base and R&D center is expected to improve the company's core competencies in the EMMS field [6]. Industry Trends - Stealth technology is becoming a critical capability in modern weaponry, driving demand for stealth materials across various military applications, including new-generation aircraft and missiles [7]. - The increasing need for electromagnetic compatibility materials in consumer electronics and automotive sectors is anticipated to boost demand for the company's products [8]. Future Projections - Revenue forecasts for 2025-2027 are projected at 1.149 billion yuan, 1.373 billion yuan, and 1.632 billion yuan, with net profits of 619 million yuan, 736 million yuan, and 865 million yuan respectively [8].