Core Viewpoint - The report highlights the contrasting performance of Zhongci Electronics, with a slight revenue decline but a significant profit increase, reflecting the challenges and potential breakthroughs in the domestic semiconductor industry driven by domestic substitution efforts [1][3]. Company Overview - Zhongci Electronics was established in August 2009, evolving from the China Electronics Technology Group Corporation's 13th Research Institute, which has been a key supplier in China's core electronic components and has participated in major national projects [2]. - The company initially focused on electronic ceramic packaging technology and has become the largest domestic manufacturer of high-end electronic ceramic shells, breaking foreign monopolies in the field [2][6]. Financial Performance - In 2024, Zhongci Electronics reported a revenue of 2.648 billion yuan, a decrease of 1.01% year-on-year, while net profit increased by 10.04% to 539 million yuan [3][4]. - The company achieved a revenue of 612 million yuan in Q1 2025, representing a year-on-year increase of 12.01%, with net profit soaring by 48.81% to 123 million yuan, significantly exceeding market expectations [5]. Strategic Developments - In 2023, Zhongci Electronics completed three strategic acquisitions for a total consideration of 3.831 billion yuan, enhancing its capabilities in GaN RF chip design and manufacturing, and establishing a complete third-generation semiconductor industry chain [3][4]. - The company has committed to significant R&D investments, maintaining a research expense ratio above 10% for three consecutive years, with 290 million yuan allocated for 2024, focusing on GaN RF chips and SiC modules [9]. Market Position and Product Development - Zhongci Electronics has established itself as a leader in the domestic market for GaN RF devices, with its products widely used in 5G communication systems [8]. - The company has developed advanced ceramic components for semiconductor equipment, achieving significant sales growth in precision ceramic parts [7]. Industry Context - The electronic ceramics industry is characterized by high competition, with 90% of profits concentrated in 10% of high-end materials, where Zhongci Electronics is making strides against established players like Kyocera [6]. - The rapid development of AI has spurred growth in the domestic optical communication sector, benefiting companies like Zhongci Electronics that innovate in materials and technology [6].

中瓷电子（003031.SZ）2024 年年报及 2025 年一季报点评 经营业绩稳健，持续深耕高端领域聚焦国产替代 2025 年 04 月 28 日 ➢ 事件：4 月 25 日，公司发布 2024 年年报及 2025 年一季报。2024 年全年 实现营收 26.48 亿元，同比下降 1.0%，实现归母净利润 5.39 亿元，同比增长 10.0%，实现扣非归母净利润 4.65 亿元，同比增长 56.0%。2025 年一季度来 看，单季度实现营收 6.14 亿元，同比增长 12.0%，实现归母净利润 1.23 亿元， 同比增长 48.8%，实现扣非归母净利润 1.14 亿元，同比增长 68.8%。 ➢ 公司经营业绩稳健，各项业务稳步发展：按细分业务拆分公司 2024 年营收， 1）电子陶瓷材料及元件：2024 年实现营收 18.78 亿元，同比增长 1.23%，营 收占比为 59.6%，毛利率为 27.35%，同比下降 0.72pct；2）第三代半导体器件 及模块：2024 年实现营收 12.72 亿元，同比下降 12.05%，营收占比为 40.4%， 毛利率为 36.27%，同比增长 6.38%。综合毛利率来 ...

Core Viewpoint - Zhongci Electronics is a leading domestic supplier of electronic ceramics and third-generation semiconductors, focusing on self-controlled core sectors and addressing critical supply issues, which is expected to enhance its valuation [1] Group 1: Business Overview - Zhongci Electronics has achieved mass production of precision ceramic components, addressing key supply chain challenges in the industry [1] - The company has a compound annual growth rate (CAGR) of 34% in revenue and 35% in net profit from 2016 to 2021, indicating strong growth potential [1] - The company completed significant asset restructuring in 2023, acquiring Bowei and Guolian Wanzhong, which opens new market opportunities in the third-generation semiconductor sector [1][3] Group 2: Market Potential - The Chinese electronic ceramics market is projected to reach a scale of 100 billion yuan, with a current localization rate of only 23%, indicating substantial room for growth [1] - The advanced structural ceramics market in China is expected to reach approximately 28.6 billion yuan by 2025, with a localization rate of only 20% in 2021 [2] Group 3: Product Development - The company has made breakthroughs in the localization of precision semiconductor ceramic components, achieving international-level core technology in products like electrostatic chucks and ceramic heaters [2] - Zhongci Electronics has successfully mass-produced 800G optical communication device housings, comparable to foreign products, and continues to invest in production line expansion [1] Group 4: Strategic Acquisitions - The acquisition of Bowei focuses on GaN RF chips, with the domestic RF chip localization rate currently at around 30%, indicating significant growth potential in the RF electronics market, projected to be approximately 10.3 billion yuan in 2023 [3] - Guolian Wanzhong is primarily engaged in SiC automotive chips, with the power electronics market expected to reach about 15.3 billion yuan in 2023, benefiting from the rapid growth of the new energy vehicle sector [3] Group 5: Financial Projections - The company forecasts net profits of 538 million yuan, 701 million yuan, and 876 million yuan for 2024, 2025, and 2026, respectively, representing year-on-year growth rates of 10%, 30%, and 25% [3] - The current market capitalization corresponds to price-to-earnings ratios of 38x, 29x, and 23x for 2024, 2025, and 2026, respectively, reflecting the company's strategic positioning in electronic ceramics and semiconductors [3]