Core Viewpoint - Tonglian Precision, established in June 2016 and listed on the Shanghai Stock Exchange in December 2021, is a rising player in the MIM industry, focusing on high-precision components for foldable devices and successfully entering the supply chains of leading smartphone manufacturers [1] Group 1: Business Performance - In Q3 2025, the company achieved a revenue of 642 million yuan, ranking 71st among 88 companies in the industry, significantly lower than the top players, with the industry average at 15.49 billion yuan [2] - The net profit for the same period was 20.32 million yuan, placing the company 60th in the industry, again far below the leaders, with the industry average at 635 million yuan [2] Group 2: Financial Ratios - The company's debt-to-asset ratio in Q3 2025 was 44.25%, slightly down from 44.31% year-on-year, which is lower than the industry average of 44.84%, indicating relatively good debt repayment capability [3] - The gross profit margin for Q3 2025 was 34.02%, down from 40.51% year-on-year but still significantly above the industry average of 19.47%, reflecting strong profitability [3] Group 3: Shareholder Information - As of September 30, 2025, the number of A-share shareholders decreased by 20.08% to 4,670, while the average number of circulating A-shares held per account increased by 26.02% to 34,600 [5] - New major shareholders include several mutual funds, while one previous major shareholder exited the top list [5] Group 4: Management Compensation - The chairman, Yang Hu, received a salary of 1.9482 million yuan in 2024, an increase of 915,100 yuan from 2023 [4] Group 5: Future Outlook - Analysts from Guotai Junan Securities have initiated coverage with a buy rating, setting a target price of 80.5 yuan, forecasting EPS growth of 43.3%, 73.9%, and 48.2% for 2025 to 2027 [5] - Dongxing Securities maintains a strong recommendation rating, expecting EPS of 0.63, 1.07, and 1.54 yuan for 2025 to 2027, highlighting growth in non-MIM precision components and ongoing development of new production bases [6]

Group 1: Financial Engineering Research - The stock, bond, and gold markets showed positive, negative, and positive signals respectively as of the end of September 2025 [2] - The macro environment forecast for Q4 indicates inflation [3] Group 2: Semiconductor Equipment Industry - The U.S. House of Representatives' special committee issued a report detailing sanctions against China's semiconductor industry, suggesting measures like export controls and technology blockades to maintain U.S. dominance [4][20] - The report indicates that five major semiconductor equipment companies (AMAT, ASML, KLA, LAM, TEL) account for 80%-85% of the global market share, with China expected to spend $38 billion on semiconductor equipment in 2024 [5][21] - Despite challenges, there is optimism for domestic semiconductor equipment companies to achieve breakthroughs in core technologies, with recommended stocks including North China Huachuang and Tuo Jing Technology [4][20] Group 3: Aviation Industry - The demand for air travel surged during the National Day and Mid-Autumn Festival holidays, with domestic passenger volume increasing by over 3% year-on-year [8][29] - The aviation industry is expected to see profitability growth in Q3 2025, driven by strong public and commercial demand [9][30] - If public demand continues to recover, the Chinese aviation industry could enter a "super cycle" by 2026, with recommendations to invest in high-quality airline networks [32] Group 4: Biomedicine Industry - Heartai Medical is a leader in congenital heart disease intervention devices, with a 32.4% year-on-year revenue growth in H1 2025 [13][14] - The company is advancing biodegradable occluders, which are gaining popularity due to their clinical advantages over traditional metal devices [14] - The market for heart valve interventions in China is expected to grow significantly, with a projected CAGR of 69.8% from 2021 to 2025 [14]

Investment Rating - The report assigns an "Accumulate" rating to the company with a target price of 80.50 CNY [5][12][18]. Core Insights - The company specializes in precision components for folding machines, with expectations for continuous improvement in average selling price (ASP) per unit. The company is steadily advancing its domestic and international production capacity, enhancing its global supply capabilities [2][12][21]. - The projected revenue for the company from 2025 to 2027 is 12.37 billion CNY, 16.10 billion CNY, and 21.39 billion CNY, respectively, with net profit attributable to the parent company expected to be 1.07 billion CNY, 1.86 billion CNY, and 2.76 billion CNY [11][16][18]. Summary by Sections 1. Earnings Forecast and Valuation - The company is expected to achieve revenues of 814 million CNY in 2024, growing to 1.237 billion CNY in 2025, and 1.610 billion CNY in 2026, with a compound annual growth rate (CAGR) of 44.9% from 2024 to 2025 [11][16]. - The estimated earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 0.66 CNY, 1.15 CNY, and 1.71 CNY, respectively, indicating significant growth rates of 43.3%, 73.9%, and 48.2% [11][12][18]. 2. Business Situation - The company focuses on MIM (Metal Injection Molding) and non-MIM components, with a strong presence in the supply chains of major smartphone brands, including Apple and Amazon. The company is well-positioned to benefit from the increasing demand for folding screen devices [21][22]. - The revenue from non-MIM precision components is expected to reach 460 million CNY in 2024, representing a year-on-year growth of 101.9%, driven by new projects from major clients [12][21][24]. 3. Production Capacity and Global Supply Chain - The company is making steady progress in establishing new production capacities both domestically and internationally, with factories in Changsha, Hunan, and Vietnam entering phased production [12][24].