Investment Rating - The report maintains a "Buy-A" rating for the company [6] Core Insights - The company is a domestic ultrasonic technology platform enterprise with diversified business growth, focusing on applications in various sectors such as power batteries, semiconductors, automotive, and tires [2][16] - In the first half of 2025, the company achieved revenue of 323 million yuan, a year-on-year increase of 32.50%, and a significant increase in net profit attributable to the parent company [2][27] - The company has maintained a research and development expense ratio exceeding 20% for two consecutive years, leading to technological breakthroughs and business expansion [2][23] Summary by Sections 1. Ultrasonic Technology Platform Enterprise - The company has established a comprehensive ultrasonic technology platform since its founding in 2007, providing solutions for various industries [16] - The actual controller has a strong technical background and has led the company to maintain high R&D investment [19][23] - The company’s revenue in 2024 was 585 million yuan, with a year-on-year growth of 11.30%, and the first half of 2025 showed a continued upward trend [27] 2. Lithium Battery Business - The lithium battery business benefits from downstream recovery and technological changes, with significant demand from leading manufacturers like CATL and BYD [2][39] - The company’s ultrasonic welding technology has distinct advantages over traditional methods, particularly in multi-layer ear welding [36] - The company is positioned as a key supplier for major battery manufacturers, enhancing its market competitiveness [39][40] 3. Semiconductor and Automotive Business - The semiconductor and automotive sectors are experiencing rapid growth due to domestic production acceleration, with the wire harness business expected to grow significantly [3][4] - The company provides comprehensive ultrasonic application solutions for the semiconductor market, benefiting from increased domestic production rates [3][4] 4. Parts and Consumables Business - The company has a high self-manufacturing rate for key components, providing stable cash flow from its consumables business [3][5] - The consumables business is expected to grow steadily as the installed base of equipment increases across various industries [3][5] 5. Profit Forecast and Valuation Analysis - The company is expected to see net profits of 137 million yuan, 212 million yuan, and 305 million yuan from 2025 to 2027, with corresponding year-on-year growth rates of 59.5%, 54.7%, and 43.8% [6][8] - The projected EPS for the same period is 1.18 yuan, 1.83 yuan, and 2.63 yuan, with a PE ratio of 96, 62, and 43 times respectively [6][8]

Investment Rating - The report gives a "Buy" rating for the company [14]. Core Views - The company is a leader in ultrasonic equipment in China, gradually expanding its application fields and is optimistic about its platform-based layout and new business increments [2][8]. - The company has a comprehensive product matrix that covers various industry needs, with battery business as a cornerstone and rapid growth in harness, semiconductor, and consumable businesses [2][8]. Summary by Sections Company Overview - Established in 2007, the company initially focused on ultrasonic cutting for rubber tires and has since expanded into the new energy battery sector, non-woven fabrics, harnesses, and semiconductors [2][8]. - The company has developed a complete ultrasonic technology platform, providing solutions across various industries, including new energy batteries, rubber tires, non-woven fabrics, automotive harnesses, and power semiconductors [25][31]. Financial Performance - The company is expected to achieve revenue of 585 million yuan in 2024, representing a year-on-year increase of 11.30%, with significant growth in harness, semiconductor, and consumable businesses [8][41]. - The gross profit margin for Q1 2025 is reported at 64.91%, an increase of 9.30 percentage points year-on-year [8]. Business Segments - **Battery Segment**: The ultrasonic welding technology is crucial for the ear welding stage in lithium batteries, with increasing demand driven by the growth of new energy vehicle sales [9][52]. - **Semiconductor Segment**: The company has secured bulk orders in the semiconductor field, particularly for advanced packaging and testing ultrasonic equipment, benefiting from the rapid growth of IGBT [10][41]. - **Harness Segment**: The demand for high-voltage harnesses in electric vehicles has opened up the welding market, with the company leading in market share and technology [11][41]. Research and Development - The company invests heavily in R&D, with a research expense ratio exceeding 20%, and has developed six core self-researched technologies that meet international standards [12][41]. - The high-margin consumable business is growing rapidly, providing stable cash flow for the company [12][41]. Market Position - The company is positioned as a market leader with strong customer resources and has established partnerships with major players in the industry [12][41]. - The competitive landscape shows the company gradually increasing its market share against domestic competitors [9][10].

Investment Rating - The investment rating for the company is "Buy-A" with a target price of 55.65 CNY, indicating a potential upside from the current price of 49.55 CNY [5]. Core Views - The company has shown a strong performance in Q1 2025 with revenue of 148 million CNY, a year-on-year increase of 22.35%, and a net profit of 24 million CNY, reflecting a significant year-on-year growth of 2152.47% [1][2]. - The company is focusing on expanding its ultrasonic technology platform into new sectors such as automotive wiring harnesses and semiconductors, which is expected to drive revenue growth in the coming years [2]. - Short-term recovery in lithium battery utilization rates is anticipated to boost order volumes, while stable contributions from consumables will support performance [2]. Financial Performance - In Q1 2025, the company's gross margin was 64.91%, an increase of 9.30 percentage points year-on-year, and the net profit margin was 15.78%, up by 14.96 percentage points year-on-year [10]. - The company has seen a continuous improvement in contract liabilities, which stood at 37.62 million CNY at the end of Q1 2025, indicating a positive trend for sustained revenue growth [11]. - Revenue projections for 2025-2027 are estimated at 760 million CNY, 1.017 billion CNY, and 1.394 billion CNY, with corresponding year-on-year growth rates of 30%, 34%, and 37% [12]. Product and Market Development - The company is optimizing its product structure, with significant growth in automotive wiring harnesses and semiconductors, which are beginning to show volume increases [3]. - In 2024, revenue from the automotive wiring harness segment reached 81 million CNY, a year-on-year increase of 352.37%, while semiconductor revenue was 47 million CNY, up by 195.66% [8]. - The consumables segment generated 1.84 billion CNY in revenue in 2024, reflecting a growth of 70.45% year-on-year, driven by increased market demand and higher utilization rates from lithium battery customers [8].