Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Views - The company has demonstrated stable operating performance with a focus on high-end fields and domestic substitution [1][4]. - The revenue for 2024 was 2.648 billion yuan, a decrease of 1.0% year-on-year, while the net profit attributable to shareholders increased by 10.0% to 539 million yuan [1][5]. - The first quarter of 2025 showed a revenue of 614 million yuan, a year-on-year increase of 12.0%, and a net profit of 123 million yuan, up 48.8% [1][5]. Revenue Breakdown - The revenue from electronic ceramic materials and components in 2024 was 1.878 billion yuan, accounting for 59.6% of total revenue, with a gross margin of 27.35% [2]. - The revenue from third-generation semiconductor devices and modules was 1.272 billion yuan, a decrease of 12.05%, accounting for 40.4% of total revenue, with a gross margin of 36.27% [2]. - The overall gross margin for 2024 was 36.41%, an increase of 0.80 percentage points year-on-year [2]. R&D Investment - The company has maintained a high R&D expense ratio, with rates of 12.2%, 10.5%, and 10.9% from 2022 to 2024, respectively [3]. - In 2024, R&D expenses amounted to 290 million yuan, a year-on-year increase of 3.1% [3]. - The company leads the domestic market in GaN communication base station RF chips and devices, with products achieving international advanced levels [3]. Financial Forecast - The projected net profits for 2025, 2026, and 2027 are 620 million yuan, 713 million yuan, and 872 million yuan, respectively, with corresponding PE multiples of 33x, 29x, and 24x [4][5]. - Revenue is expected to grow to 2.970 billion yuan in 2025, reflecting a growth rate of 12.2% [5][10].