Investment Rating - The investment rating for the company is "Buy" (first coverage) [1] Core Views - The company is expected to achieve a compound annual growth rate (CAGR) of 33% in EPS from 2025 to 2027, driven by its strong position in the electromagnetic functional materials and structures (EMMS) sector [4] - The demand for stealth materials is on the rise, supported by an increase in national defense budgets and the upgrading of military equipment, which is expected to drive the company's revenue growth [5] - The company has established a complete closed-loop system from preparation to engineering application, with significant advantages in core technologies such as low-frequency ultra-wideband and multi-spectrum compatibility [4][5] Financial Summary and Valuation Indicators - The company's revenue is projected to grow from 9.81 billion yuan in 2023 to 22.56 billion yuan in 2027, with a CAGR of 43.96% from 2019 to 2024 [7] - The net profit attributable to the parent company is expected to increase from 564 million yuan in 2023 to 964 million yuan in 2027, reflecting a strong growth trajectory [7] - The gross margin is expected to remain high, with estimates of 76.4% in 2025, 74.9% in 2026, and 73.4% in 2027 [7] Business Overview - The company focuses on stealth functional materials and electromagnetic compatibility materials, with stealth coating materials and structural components accounting for 97.17% of revenue in the first half of 2025 [19] - The company is expanding its business boundaries by developing new generation electromagnetic measurement and control services, aiming to evolve into an integrated platform enterprise [4][19] - The company has a stable supply chain and pricing mechanism that ensures high gross margins, with a gross margin of 76.9% in 2023 [6][25] Market Dynamics - The stealth materials market is expected to grow significantly, with a projected CAGR of 8.5% in China from 2025 to 2035, driven by military modernization and equipment upgrades [42] - The company is well-positioned to benefit from the increasing demand for stealth materials due to the growing number of military aircraft and the need for maintenance and upgrades [46] - The competitive landscape is characterized by high barriers to entry, with the company holding a strong position in the market due to its proprietary technologies and established relationships with key military clients [48][50]