Investment Rating - The report gives a "Buy" rating for the company, Gobi Jia (戈碧迦) [3]. Core Views - Gobi Jia is positioned as a leading domestic manufacturer in the optical and specialty glass sectors, with a strong focus on cost control and operational efficiency. The company has shown significant revenue growth driven by its specialty glass segment, which has expanded rapidly in recent years [6][10]. - The company is expected to face short-term performance pressure due to the completion of orders with Chongqing Xinjing, but its long-term prospects remain strong due to its proprietary technology and market position [6][14]. Financial Forecasts - The projected financial metrics for Gobi Jia are as follows: - Revenue (in million CNY): 808.34 in 2023, expected to decline to 566.49 in 2024, then recover to 736.12 in 2025, and reach 926.89 in 2026 [2]. - Net profit (in million CNY): 104.21 in 2023, declining to 70.99 in 2024, then increasing to 86.95 in 2025, and 109.89 in 2026 [2]. - EPS (in CNY): 0.74 in 2023, expected to drop to 0.50 in 2024, then rise to 0.62 in 2025, and 0.78 in 2026 [2]. - The report anticipates a PE ratio of 45-50 for 2025, suggesting a fair value range for the stock between 27.9 and 31 CNY per share [6]. Company Overview - Gobi Jia has been in the glass manufacturing industry for over 15 years, focusing on optical and specialty glass products. The company has developed a wide range of products used in various applications, including security monitoring, automotive lenses, optical instruments, and smart projection [10][25]. - The company has a relatively dispersed ownership structure, with significant stakes held by institutional investors, which aligns the interests of management and key technical personnel with those of shareholders [22]. Industry Insights - The optical glass market in China is projected to grow, with a market size of approximately 3.76 billion CNY in 2023, reflecting a 4.4% increase. The demand for high-quality optical products is expected to rise due to advancements in technology and consumer electronics [6][30]. - The specialty glass segment is characterized by a diverse range of applications and a lack of domestic products, presenting opportunities for growth as the industry evolves [30][38]. Production Capabilities - Gobi Jia has made significant advancements in its melting and forming processes, allowing for continuous production and high-quality output. The company has developed proprietary technologies that enhance production efficiency and product quality [40][41]. - The company is expanding its production capacity with a new investment project aimed at increasing specialty glass output, which is expected to contribute significantly to future profits [6][40].