This report is read as follows:

We are optimistic that the upside of domestic semiconductor investment will lead to the expansion of the clean room market of important infrastructure, and the re-upgrading of science and technology as the leader of air filtration materials is expected to benefit.

Main points of investment:

Maintain the "overweight" rating. We are optimistic that the upside of domestic semiconductor investment will lead to the expansion of the clean room market of important infrastructure, and the re-upgrading of science and technology as the leader of air filtration is expected to benefit. Considering that the demand of animal husbandry and other industries is still recovering, we will reduce the EPS in 2023-2024 to 0.20,0.25 (- 0.05,0.05) yuan, add 0.32 yuan to EPS in 2025, and lower the target price to 5.21 (- 2.22) yuan with reference to the valuation of the company's PE in 2023.

Clean room equipment, the core of high-end manufacturing infrastructure engineering. We believe that the clean room is the basic project of high-end manufacturing semiconductors, panels, medicine and other fields, and it is one of the most important facilities to ensure yield and safety. We believe that the filter with high-end fiberglass material and other filter media in the air cleaning equipment is the core of the clean room, and re-rising as the leader of the filter material is expected to take advantage of the east wind to achieve great strides.

The leading competitiveness of air filter materials extends. Zaisheng Technology has been committed to the integrated layout of the "clean air" industry chain, gradually realizing from a single material supplier to a comprehensive application solution service provider, the company's comprehensive strength in the clean field has been further enhanced. At present, Zai Sheng Technology has achieved breakthroughs in high-end semiconductor panels and other industries, cutting into the new equipment market controlled by the international leader in the field of clean air, realizing the leap from domestic first-class to international first-class brands.

The transfer of Yuanyuan, together with Manhumer Group, is expected to make efforts in the field of automotive filtration. Recently, the company transferred 70% equity of Suzhou Youyuan to Manhumer Group to establish a strategic cooperative relationship. Manhumer is the leader in the international automobile filtration field. The company is expected to speed up the business development in the automotive field with the help of cooperation and achieve a win-win situation.

Risk hint: domestic semiconductor investment is not up to expectations, exchange rate fluctuation risk.