Investment Rating - The report gives a "Buy" rating for the company, Huakang Clean [5]. Core Views - Huakang Clean is a leading cleanroom system integrator in the medical sector, expanding into the electronic cleanroom market, which is experiencing high demand [3][5]. - The company has a solid order backlog in the medical sector, with a total order value of 2.753 billion yuan for 2024, indicating stable growth prospects [4][5]. - The electronic cleanroom segment is expected to become a significant growth driver, with the market for electronic cleanrooms projected to exceed 1 trillion yuan in 2022 [5][6]. Summary by Sections Company Overview - Established in 2008, Huakang Clean has evolved from a medical cleanroom service provider to include laboratory integration and electronic cleanroom services, serving over 800 clients [3][4]. - The company rebranded from "Huakang Medical" to "Huakang Clean" in March 2025 to better reflect its focus on clean technology [3]. Market Potential - The cleanroom market in China is projected to reach approximately 312.68 billion yuan annually, driven by the increasing demand for clean surgical rooms and system upgrades [4][48]. - The electronic cleanroom market, which accounted for 54% of the cleanroom industry in 2022, is expected to see continued growth due to rising semiconductor investments [5][56]. Financial Projections - Revenue forecasts for Huakang Clean are 2.755 billion yuan in 2025, 3.644 billion yuan in 2026, and 4.830 billion yuan in 2027, with expected growth rates of 61%, 32%, and 33% respectively [5][7]. - The net profit is projected to reach 171 million yuan in 2025, 222 million yuan in 2026, and 301 million yuan in 2027, reflecting growth rates of 156%, 30%, and 35% respectively [5][7]. Competitive Position - Huakang Clean holds a strong competitive position in the medical cleanroom sector, ranking among the top three in terms of bid amounts from 2017 to 2020 [48]. - The company has established a robust reputation and project experience, which enhances its ability to secure new contracts and expand its market share [71][79].