Core Insights - The report highlights the strong growth potential of Huakang Clean (301235) in the cleanroom integration service sector, focusing on both medical and electronic fields [2][3][5] - The company has a robust order backlog, with orders in hand for medical and laboratory cleanrooms increasing from 1.727 billion to 3.706 billion from 2022 to the first half of 2025, indicating sustained revenue growth [3][12] - The establishment of an electronic division in 2024 aims to leverage existing expertise and local resources, targeting a larger market in electronic cleanrooms [3][12] - The report projects significant revenue growth for Huakang Clean, estimating revenues of 2.542 billion, 3.547 billion, and 4.598 billion for 2025-2027, with corresponding net profits of 153 million, 225 million, and 332 million [3][12] Company Overview - Huakang Clean has been operating in the cleanroom integration service industry for 17 years, providing a full range of services including design, construction, procurement, and after-sales support [3][12] - The company serves over 800 high-quality clients across various sectors, including major hospitals and electronics firms [3][12] Market Dynamics - The medical cleanroom market is characterized by fragmentation, but Huakang Clean has successfully expanded its business despite challenging macroeconomic conditions [3][12] - The electronic cleanroom market is expected to grow, with Huakang Clean's strategy of targeting high-tier clients and their supply chains showing early success [3][12] Financial Projections - The report anticipates a compound annual growth rate (CAGR) of 49%, 40%, and 30% for revenues from 2025 to 2027, alongside a significant increase in net profit margins [3][12] - The estimated market valuation for Huakang Clean is projected at 5.1 billion, suggesting a potential upside of approximately 43% from its market value as of September 15, 2025 [3][12]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is expected to benefit from dual positive factors, particularly in the demand for its equipment following the approval of the MASH clinical trial [6] - The Fibroscan technology is anticipated to gain further clinical significance, establishing itself as a gold standard in non-invasive testing [6] - The successful clinical trial results of the company's affiliate, Theraclion, for its Sonovein treatment are expected to enhance its commercial prospects in the varicose vein market [6] Financial Data and Profit Forecast - Total revenue projections are as follows: - 2024: 1,349 million - 2025: 1,677 million (24.3% YoY growth) - 2026: 2,063 million (23.0% YoY growth) - 2027: 2,506 million (21.4% YoY growth) [5] - Net profit forecasts are: - 2025: 210 million (85.4% YoY growth) - 2026: 313 million (49.1% YoY growth) - 2027: 426 million (35.9% YoY growth) [5] - Earnings per share (EPS) estimates are: - 2025: 0.79 - 2026: 1.18 - 2027: 1.61 [5] - The company's return on equity (ROE) is projected to improve from 10.7% in 2025 to 17.5% in 2027 [5]