Store new machines in many fields to welcome the medium-and long-term inflection point

The company's main products are thermal conductive materials, electromagnetic shielding, lightweight and so on, mainly used in consumer electronics, communications, new energy three scenarios, with heat dissipation as the core to build platform enterprises. Standing at the moment, the company is looking forward to the layout of new energy, entering the cash period; consumer electronics is expected to significantly benefit from the major customer new product cycle; communications business benefits from ai liquid cooling. On the whole, there are many new opportunities in the company's business, ushering in a medium-and long-term inflection point.

Big customers come back strongly with new machines, and consumer electronics business is expected to increase rapidly.

At the industry level, mobile phones and laptops have experienced a long period of adjustment and are expected to usher in improvement; VR/AR is expected to become a new generation of electronic products that change human way of life, with broad long-term space. Overall, the demand of the consumer electronics industry is expected to improve marginally, and there is still a broad space for new products for a long time.

The company's cooperation with Huawei dates back to 1997, and Huawei, long the core supplier of Huawei's mobile phone business, has returned strongly with new phones, which is expected to bring high increments to the company.

5.5G and server liquid cooling inject new machines into communication services

Corporate communication business application scenarios include communication base stations and data centers. The construction of global 5G communication base stations is still accelerating, and 5.5G is also gradually breaking through under the guidance of Huawei, the new generation of communication technology has higher requirements for electromagnetic shielding and heat dissipation materials, which is expected to increase the value of the company's products; the data center is expected to usher in the accelerated infiltration of liquid cooling temperature control under the demand of higher power density and lower PUE, and the unit value of liquid cooling is significantly higher than that of air cooling, which will increase the overall value of the company's products. In addition, the company cooperates with ZTE Corporation to develop 3D VC, leading the new direction of thermal management of 5G base stations, and the company is expected to gain higher market share with its first-mover advantage.

New energy enters the cash period, robots and Dojo bring new attractions.

The company's new energy products can be used for new energy vehicles and optical storage, and the company has in-depth cooperation with leading enterprises such as Ningde Times, Huawei and Sunshine Power, and is expected to maintain high growth in the next three years. In addition, Ningde era Kirin battery greatly increased the amount of liquid-cooled plate, has been in a variety of models to achieve loading, the company actively raised funds to expand liquid-cooled plate capacity.

Tesla, Inc. launched Dojo as a computing infrastructure to carry the development of AI business system, and vigorously promoted the commercialization of humanoid robots. There is a demand for electromagnetic shielding and heat conduction materials. The company is expected to cut into its new business supply chain on the basis of cooperation with Tesla, Inc. automobile business, bringing new growth points for the company.

Profit forecast

It is estimated that in 2025, the net return profit of 2023Universe 2024Companywill be 2.5 company4.5 / 590 million yuan, EPS is 0.44 and0.78, respectively, and the corresponding PE will be 40-22-17. The company's multi-business areas resonate, the performance inflection point is clear, enter the medium-and long-term upward channel, and maintain the "buy" rating.

Risk hint

Risk of policy fluctuation; lower-than-expected downstream demand; lower-than-expected product prices; risk of deterioration of the competition pattern; capacity expansion and digestion is not as expected.