Investment Rating - The report assigns a rating of "Buy" to the company [4]. Core Insights - The company is the second-largest global supplier of high-end aramid paper, with significant growth potential in various downstream sectors [9]. - The core investment logic includes the company's strong market position, strategic supplier role in commercial aerospace, benefits from overseas power grid upgrades, and the increasing demand in the aviation sector due to new aircraft and maintenance cycles [9]. - The company is expected to achieve substantial earnings growth, with projected EPS of 0.84, 1.21, and 1.93 CNY per share for 2025, 2026, and 2027 respectively, leading to a target price of 54.34 CNY per share based on a 45x PE valuation for 2026 [9]. Summary by Sections Company Overview - The company specializes in aramid paper, a key strategic material for manufacturing, with applications in various critical sectors such as electrical power, aerospace, rail transportation, new energy, and electronic communications [16][17]. Competitive Landscape - The company ranks second in global market share for aramid paper, following DuPont, which has exited the market, potentially allowing the company to capture more market share [38][39]. Power Equipment - Aramid paper is widely used in transformers and other electrical equipment due to its superior thermal insulation properties, which enhance the reliability and safety of electrical devices [41]. Aviation Sector - The demand for aramid paper in the aviation industry is driven by new aircraft and maintenance needs, with the global aviation market expected to recover significantly [56][57]. Commercial Aerospace - The company is positioned as a key supplier of materials for commercial aerospace, benefiting from the increasing requirements for high-performance materials in extreme environments [9]. Earnings Forecast and Valuation - The company is projected to see revenue growth from 340 million CNY in 2023 to 960 million CNY by 2027, with a CAGR of 49.2% [3]. The EBITDA is expected to grow from 105 million CNY in 2023 to 373 million CNY in 2027 [3].

Summary of Conference Call for Minshida Company Overview - **Company**: Minshida - **Industry**: Advanced materials, specifically focusing on aramid paper and honeycomb core materials Key Points Production and Capacity - New aramid paper production line commenced operations in Q3, achieving a 50% utilization rate by September 30 [2][4] - RO membrane substrate and wet non-woven fabric lines expected to start production in Q1 next year, with ample capacity across product lines [2][4] - The company plans to release remaining capacity based on market expansion [2] Market and Pricing - Aramid paper procurement prices remained stable with a slight decrease in Q3; prices are expected to stabilize in Q4 and next year [2][11] - The design annual production capacity for RO membrane substrate is 1,500 tons, primarily used in water purification equipment [2][12] - The company is focusing on the honeycomb core material market, particularly in the aviation sector, where it has begun bulk supply [2][15] Strategic Focus - Minshida aims to strengthen its technical and application advantages in aramid paper, particularly in high-end markets to replace foreign competitors [2][6] - The company is also exploring emerging fields such as computing power development and renewable energy, providing customized solutions [2][6] Financial Performance - Q3 financial indicators showed a decline due to delays in product delivery in the wind and solar new materials sector, which has higher average selling prices and gross margins [2][16] - The company has not received any plans for shareholding reductions from executives or major shareholders, and accounts receivable risks are considered manageable [2][9] Competitive Landscape - The primary competitors in the honeycomb core material market are foreign companies, with most market share held by them [2][5] - The company is working on aviation sector certifications and customized product development to quickly replace foreign competitors [2][5] Applications and Innovations - Aramid paper honeycomb materials are being tested for applications in new energy vehicles, with some validation already completed [2][10] - The company is also involved in the production of high-end pickleball paddles using aramid paper honeycomb materials, currently in the promotion stage [2][3][18] Future Outlook - The company is optimistic about the impact of national support for seawater desalination on performance, although the RO membrane substrate line will only be operational in Q1 next year [2][12] - Overall goal is to become a globally competitive player in the new materials sector [2][6]

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company reported Q3 results that fell short of expectations due to the delivery rhythm of honeycomb materials, while transformers continued to show growth [7] - The company is experiencing a strong growth trajectory in the electrical insulation sector, with a significant market share increase in the domestic and international transformer markets [7] - Despite short-term challenges in the honeycomb core material sector, the long-term trend of domestic substitution remains intact, with stable growth in military and civil aviation sectors [7] - The company is expected to see more contributions from its investment projects in Q4, with new products projected to launch in early 2026 [7] Financial Data and Earnings Forecast - For the first three quarters of 2025, the company achieved total revenue of 343 million yuan, a year-on-year increase of 21.8%, and a net profit of 91.17 million yuan, a year-on-year increase of 28.9% [6][7] - The projected revenues for 2025, 2026, and 2027 are 518 million yuan, 666 million yuan, and 820 million yuan respectively, with corresponding net profits of 133 million yuan, 174 million yuan, and 220 million yuan [6][9] - The gross margin for the first three quarters of 2025 was 40.4%, reflecting a year-on-year increase of 2.8 percentage points [7] Market Data - As of October 17, 2025, the closing price of the company's stock was 39.19 yuan, with a market capitalization of 5,675 million yuan [2] - The stock has seen a one-year high of 56.84 yuan and a low of 16.05 yuan, with a price-to-book ratio of 7.4 and a dividend yield of 0.51% [2]

Core Viewpoint - The A-share market will see a significant unlock of restricted shares, totaling approximately 966.01 billion yuan, with 40 stocks experiencing share unlocks next week [2]. Group 1: Stock Unlock Details - 40 stocks will have their restricted shares unlocked from September 8 to 12, with a total unlock market value of 966.01 billion yuan [2]. - Among these, 12 stocks have an unlock market value exceeding 10 billion yuan, with notable mentions including Times Electric (278.23 billion yuan), Southern Network Storage (230.81 billion yuan), and BGI Genomics (133.82 billion yuan) [2][4]. - Southern Network Storage and Western Gold are among the stocks with restricted shares unlocked from directed placements, while the other three are from the initial public offering (IPO) original shareholders [2]. Group 2: Unlock Proportions - A total of 13 stocks have an unlock proportion exceeding 10%, indicating a potential impact on their stock prices [5]. - Stocks such as Minshida, Southern Network Storage, Sairun Bio, and Zhejiang Hengwei have unlock proportions above 50% [5]. - The detailed table lists various stocks, their unlock dates, market values, and the proportion of shares being unlocked [7]. Group 3: Company Performance Insights - Times Electric's largest shareholder, CRRC Zhuzhou Electric Locomotive Research Institute, will unlock approximately 590 million shares, accounting for 43.42% of the total share capital [4]. - Times Electric reported a revenue of 12.214 billion yuan for the first half of 2025, reflecting a year-on-year growth of 17.95%, with a net profit of 1.672 billion yuan, up 12.93% [4]. - Minshida, listed on the Beijing Stock Exchange, achieved a revenue of 237 million yuan in the first half of 2025, marking a year-on-year increase of 27.91%, with a net profit of 63.03 million yuan, up 42.28% [8]. Group 4: Institutional Investment Insights - Institutions that participated in the directed placements of stocks like Western Gold and Southern Network Storage are expected to see positive returns from the unlocks, with Western Gold's return exceeding 180% and Southern Network Storage's over 70% [8]. - Among the 40 stocks, 15 are categorized as general equity incentive shares or restricted shares, with companies like Sany Heavy Energy and Zhaoyi Innovation having unlock market values exceeding 1 billion yuan [8].

Group 1: Investor Relations Activities - The company conducted investor relations activities from July 24 to July 25, 2025, including specific object research and online meetings [3] - Attendees included various investment firms and securities companies, with a total of 40 participating entities [4] Group 2: Production and Financial Performance - The company’s 1500-ton aramid paper production line commenced trial production in June 2025, with capacity utilization expected to gradually increase in the second half of the year [5] - The net profit growth rate for the first half of the year exceeded revenue growth, attributed to a higher proportion of high-value-added products and maintained high capacity utilization [5] Group 3: Market Trends and Product Development - The most significant growth in the industry during the first half of the year was observed in the electrical insulation transformer sector, with strong demand in both domestic and European markets [6] - The company has initiated the industrialization of RO membrane substrate products, expected to commence production in Q1 2026 [9] Group 4: Customer Structure and Market Strategy - Approximately one-third of the company’s customers are international, with a focus on optimizing overseas business layout [10] - The strategy for increasing overseas market share includes enhancing R&D for high-value products, deepening market penetration in Europe, and expanding into emerging regions like the Middle East and Asia-Pacific [11]