Core Insights - The company has achieved a significant breakthrough by successfully delivering the core supporting PIC cables for the ITER project, marking an important milestone in the specialty cable sector [1] - The company focuses on high-value segments within the trillion-level cable market, emphasizing its commitment to "small batch, multiple varieties" of specialty cables [1][2] - The company is expanding into high-tech fields such as nuclear power cables, high-speed communication cables, and cables for humanoid robots [1][4] Electric Vehicle Market - The company has established itself as a key supplier of high-voltage cables for electric vehicles, which require superior performance characteristics compared to traditional automotive cables [2] - The company has formed long-term partnerships with major automotive manufacturers, including BYD, Geely, and NIO, to supply high-pressure cables [2] - The competitive landscape for electric vehicle cables is intensifying, with the company focusing on liquid-cooled ultra-fast charging, high-speed communication connections, and commercial vehicles as key growth areas [2][3] Specialty Cable Development - The company is actively developing new products in response to national strategic needs and market demands, with a focus on nuclear power and high-performance communication cables [3][4] - The company has a unique position in the nuclear power sector, being the only private enterprise in China with qualifications for both cable and electrical penetrations [3][4] Technological Advancements - The company has made significant advancements in radiation-resistant technology for cables used in the ITER project, achieving all core indicators in third-party testing [4] - The company is leveraging its expertise in specialty cables to expand into emerging sectors such as humanoid robots and low-altitude economy, developing ultra-flexible cables that meet stringent requirements [4][6] Market Strategy - The company emphasizes the importance of early investment in R&D while being patient for market maturity, recognizing that timing is crucial for successful commercialization [5] - The company adopts a differentiated strategy to navigate the competitive landscape, focusing on technology and service quality rather than engaging in price wars [5][6] - The company identifies nuclear power, rail transportation, and humanoid robots as blue ocean markets with lower price sensitivity and higher quality expectations [6] Mergers and Acquisitions - The company has successfully integrated Jiangsu Huaguang, enhancing its capabilities in the nuclear power sector through capital injection and management optimization [6] - The company plans to acquire control of Yangzhou Shuguang Optoelectronics, which will help broaden its business scope and create synergies with its specialty cable operations [7]

Core Viewpoint - Xin Hongye has achieved a significant breakthrough in the special cable sector by successfully delivering the core supporting PIC cables for the ITER project, indicating its strong position in the high-value cable market [1] Group 1: Business Focus and Market Position - Xin Hongye focuses on high-value segments within the trillion-level cable market, emphasizing "small batch, multiple varieties" of special cables [1] - The company has established itself as a leader in various industries, including new energy vehicles, charging piles, photovoltaics, energy storage, and industrial control [1][2] - Xin Hongye has entered the supply chains of major automotive manufacturers, including BYD, Geely, SAIC, and NIO, maintaining long-term stable partnerships [2] Group 2: Technological Advancements - The company has developed a megawatt-level ultra-fast charging cable with a current density exceeding 30A/mm², significantly improving charging efficiency [3] - A joint venture with ACOME aims to provide high-performance, reliable high-speed data communication cables to meet the growing signal transmission demands of smart connected vehicles [3] Group 3: Strategic Development and Investment - Xin Hongye plans to raise funds for the research and industrialization of new projects, including super-conductive cables and next-generation nuclear power station cables [4] - The company has a unique position in the nuclear power sector, holding dual qualifications for nuclear-grade products and has been involved in the ITER project for three years [4] Group 4: Market Expansion and Innovation - Xin Hongye is expanding into emerging markets such as humanoid robots and low-altitude flying vehicles, leveraging its technical expertise in special cables [5] - The company has developed ultra-flexible cable products tailored for humanoid robots, significantly enhancing performance in dynamic bending and environmental resistance [5] Group 5: Sustainable Growth and Competitive Strategy - Xin Hongye emphasizes early R&D investment and market anticipation to capitalize on emerging opportunities, as seen with its early focus on electric vehicle cables [6] - The company adopts a differentiated strategy to avoid price wars in saturated markets, focusing instead on technology and service quality [6][7] - The company is actively pursuing mergers and acquisitions to enhance its capabilities and expand its market presence, as demonstrated by its acquisition of Jiangsu Huaguang [7][8]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [4][17]. Core Insights - The company achieved steady revenue growth in H1 2025, with a revenue of 1.945 billion yuan, representing a year-on-year increase of 19.57%. The net profit attributable to the parent company was 99.166 million yuan, up 31.83% year-on-year [2][3]. - The company is actively enhancing its product development and market competitiveness through continuous R&D investments, which amounted to 59.486 million yuan in H1 2025, a 10.70% increase year-on-year [3]. - The company is benefiting from expanding demand in various downstream applications within the cable industry, with notable growth in sectors such as new energy cables and automotive cables, which saw revenue increases of 81.23% and 83.54% respectively [2][3]. Financial Summary - The company's projected financial performance shows a steady increase in revenue and net profit from 2023 to 2027, with revenues expected to grow from 3.186 billion yuan in 2023 to 5.647 billion yuan in 2027, reflecting a compound annual growth rate (CAGR) of 19.5% [1][9]. - The net profit attributable to the parent company is forecasted to rise from 144 million yuan in 2023 to 276 million yuan in 2027, with an expected EPS increase from 0.45 yuan to 0.85 yuan over the same period [1][9]. - The company's return on equity (ROE) is projected to improve from 10.8% in 2023 to 14.6% in 2027, indicating enhanced profitability and efficiency [1][9].

Core Viewpoint - Xin Hongye plans to raise no more than 300 million yuan through a targeted issuance of shares to strengthen its market position in the special cable industry [1][2]. Fundraising and Projects - The company intends to use the raised funds for three major projects: 1. Super Fusion Conductor Cable R&D and Industrialization Project with a total investment of approximately 215 million yuan, aiming to produce 1.8 million kilometers of low-voltage wires annually [2]. 2. High-Power Charging Connection and Cooling System R&D and Industrialization Project with a total investment of 54.82 million yuan, targeting an annual production of 22,000 liquid-cooled supercharging guns and 11,000 thermal management systems [2]. 3. New Generation Nuclear Power Station Special Cables and Electrical Penetration Components R&D and Industrialization Project with a total investment of 49.57 million yuan, aiming for an annual output of 30,000 kilometers of nuclear power cables and 250 electrical penetration components [2]. Financial Performance - As of Q1 2025, Xin Hongye reported a revenue of 755 million yuan, a year-on-year increase of 55.35%, and a net profit attributable to shareholders of 34.43 million yuan, up 20.43% year-on-year [6]. - The company’s revenue for 2024 reached 2.648 billion yuan, marking a historical high, although the net profit decreased by 29.61% to 116 million yuan [6]. Market Position and Product Development - Xin Hongye focuses on various special cables, including those for new energy vehicles, charging stations, photovoltaic systems, and nuclear power [4]. - The company has established itself as a core supplier for major clients like BYD and Li Auto, particularly in the electric vehicle sector [5]. - Xin Hongye is also expanding into emerging markets such as humanoid robotics and low-altitude economy, providing customized cable solutions for complex applications [5]. R&D Investment - The company has been increasing its R&D investment, with amounts of 54.70 million yuan in 2022, 61.30 million yuan in 2023, and projected 82.39 million yuan in 2024, representing a steady increase in the proportion of R&D investment relative to revenue [6].