Investment Rating - The report assigns an investment rating of "Buy-A" for the company [6] Core Views - The company is expected to experience a significant recovery in net profit from 2025 to 2027, with projected figures of 5.7 billion, 9.1 billion, and 16.6 billion respectively, corresponding to a dynamic P/E ratio of 30 times in 2025 [6] - The company has a solid industry position, with high-purity quartz sand domestic substitution becoming imperative due to rising trade protectionism and the need for localization in semiconductor applications [5][6] Financial Performance Summary - In 2024, the company reported a revenue of 1.21 billion, a year-on-year decline of 83.2%, and a net profit of 334 million, down 93.4% year-on-year [3][10] - For Q1 2025, the company achieved a revenue of 250 million, a decrease of 35.5% year-on-year, but a significant quarter-on-quarter increase of 155.3%, with a net profit of 50 million [3] - The revenue from quartz rods in 2024 was 970 million, down 21.2% year-on-year, with a gross margin of 43.9% [4] - The revenue from quartz sand in 2024 was 210 million, down 96.4% year-on-year, with a gross margin of 54.4% [4] Market Data Summary - As of May 22, 2025, the closing price of the stock was 31.50 yuan, with a market capitalization of 17.063 billion [2] - The stock reached a yearly high of 46.50 yuan and a low of 21.58 yuan [2] - The company has a total share capital of 542 million, all of which are circulating A-shares [2] Future Projections - The company is expected to see a recovery in revenue, with projections of 1.56 billion in 2025, 2.21 billion in 2026, and 3.36 billion in 2027, reflecting a year-on-year growth of 29.1%, 41.6%, and 52.0% respectively [10] - The gross margin is expected to improve from 55.4% in 2025 to 65.4% in 2027 [10]