Group 1: Company Acquisition and Development - The acquisition of Jinli Co., Ltd. is currently under review by the Shenzhen Stock Exchange, with the application documents accepted on June 12, 2025, and draft reports disclosed on July 23, September 3, and September 9, 2025 [2][3] - The company is actively promoting the acquisition process and acknowledges the existing uncertainties, advising investors to pay attention to future announcements [2][3] - The project for lithium battery composite electrolyte membrane materials is progressing as planned, with main equipment installation underway [3] Group 2: Strategic Business Expansion - The company aims to enhance its presence in the lithium battery separator sector through the acquisition of 100% equity in Jinli Co., Ltd. and associated fundraising efforts [3] - The goal is to leverage the public company platform to drive high-quality development of Jinli Co., Ltd. and improve the company's profitability and shareholder returns [3] Group 3: Product Development and Market Applications - The subsidiary Weida Optoelectronics produces a range of optical film products, including polarizers and anti-fog films, primarily for downstream display module customers [3] - These products are applied in various fields such as automotive displays, industrial control displays, OLED displays, smart home displays, and anti-fog glasses [3]

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage in the market [3][52]. Core Viewpoints - The company is recognized as a global leader in PCB tooling, with strong growth in its drilling needle business driven by the expanding AI server and high-speed switch markets [3][5]. - The demand for PCB drilling needles is expected to rise significantly due to the increasing complexity of PCB designs and the need for high precision in manufacturing [9][51]. - The company is enhancing its production capabilities through self-research and development of key equipment, which allows for cost reduction and improved production efficiency [5][36]. - The company is actively expanding its global footprint, particularly in Southeast Asia and Europe, to capture growing market opportunities [43][51]. Summary by Sections Market Performance - As of August 13, 2025, the company's closing price is 59.66 CNY, with a total market capitalization of 24,460.60 million CNY and a circulating market value of 4,237.29 million CNY [1]. Financial Forecast - The company is projected to achieve net profits of 4.28 billion CNY, 7.63 billion CNY, and 11.19 billion CNY for the years 2025 to 2027, with year-on-year growth rates of 88.59%, 78.27%, and 46.65% respectively [5][51]. - The expected price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are 57.17, 32.07, and 21.87 respectively [5][51]. Industry Trends - The global AI server market is anticipated to grow from 125.1 billion USD in 2024 to 158.7 billion USD in 2025, driving demand for PCB tools and drilling needles [4][13]. - The transition to advanced materials in PCB manufacturing is leading to increased demand for drilling needles, as manufacturers aim to maintain low breakage rates [15][22]. Company Strategy - The company is focusing on self-research and development to enhance its production capabilities and reduce reliance on imported equipment, achieving significant cost savings [36][42]. - The establishment of overseas production bases, such as in Thailand, is part of the company's strategy to lower labor costs and improve raw material sourcing [43][51]. Product Development - The company is expanding its product offerings in functional films, with significant growth in demand for automotive light control films and explosion-proof films [44][51].