Investment Rating - The report initiates coverage with a "Buy" rating for the company [5] Core Views - The company is a rare domestic player mastering high-end e-PTFE membrane and aerogel core technologies, establishing significant competitive barriers through "technical depth and application innovation" [1][2] - The company is currently in a performance release phase, with a net profit of 24.08 million in Q1 2025, representing a year-on-year increase of 43% [1] - The company is actively expanding into high-growth sectors such as new energy and military applications while maintaining stable growth in traditional automotive business [1] Summary by Sections Company Overview - The company focuses on product R&D and technological innovation, with core technologies in e-PTFE membranes and SiO2 aerogels, widely applied in automotive, new energy, and consumer electronics [20][12] Technical Barriers - The company has developed a complete e-PTFE membrane technology system, breaking the monopoly of international giants like Gore and Nitto [2] - The company’s core production equipment is self-designed or modified, creating a natural moat [2] - R&D investment is projected to be about 5.6% in 2024, with an increase in the proportion of R&D personnel to approximately 20% [2] Growth Drivers - The CMD product line has seen revenue growth of 6.5 times from 2021 to 2023, expected to account for 27.6% of revenue in 2024 [3] - Aerogel revenue is projected to reach 65.12 million in 2024, with a year-on-year increase of 46.5% [3] - The company has established a new automotive wiring harness division in 2024, which has already generated revenue [3] Financial Forecast - The company’s net profit is expected to reach 146.15 million, 193 million, and 250 million for the years 2025, 2026, and 2027 respectively, with corresponding PE ratios of 26, 20, and 15 [4] - Revenue is projected to grow from 410.55 million in 2023 to 1,096.16 million in 2027, with a compound annual growth rate of 15.25% [4] Valuation - The target price is set at 63 yuan per share, based on a 30x PE valuation for 2025 [4][51] - The company is compared with peers like Walton Technology and Starry Material, with an average PE of 30.2 for comparable companies [51]