The power equipment business is developing steadily. Since its establishment, the company has mainly focused on the operation and expansion of electric vacuum devices. Its main products include vacuum arc extinguishing chambers, fixed pole columns, complete electrical appliances, high-power lasers, RF electronic tubes, etc. Vacuum arc extinguishing chambers, or vacuum switching tubes, are the core components of power switching equipment. The company is the most comprehensive ceramic vacuum arc extinguisher manufacturing base in China. It has a production capacity of over 1 million vacuum extinguishers per year, and has been fully recognized by users of the State Grid, China Southern Power Grid, etc., and has established long-term cooperative relationships. Electron tubes are devices that use electrons to move in a vacuum to complete energy conversion. The company's product performance parameters are in a leading position in China. The products are mainly used in laser processing equipment, radio and television, medical care, etc., and have successfully developed new application fields such as semiconductor processing equipment and controlled nuclear fusion in recent years. In addition, the company relies on technical advantages to develop new power and new energy complete equipment business, mainly serving fields such as new energy and AC/DC power grids.

The military business achieved rapid growth. At the beginning of its establishment, the company was a military enterprise specializing in R&D, design and production of vacuum electron tubes. In recent years, it has relied on the original military business base to continue to expand its product line, and has built a software and hardware integrated product layout covering the “bomb, aircraft, and ship” fields. The main products include missile detonator devices, ship frequency conversion devices, precision components for aerospace vehicles, and intelligent embedded computer systems. The company's headquarters is mainly focused on the development of electronic tubes and frequency conversion devices in the “bomb” and “ship” fields; Eagle Machinery is mainly positioned in the “bomb” and “aircraft” fields for the development of guide head structural parts and precision components such as aerospace engines and aircraft; and Ruikong Chuanghe is committed to the R&D, production and sales of localized intelligent embedded computer systems.

The electronic materials business market has broad prospects. The company is an enterprise specializing in ceramic electric vacuum devices. The ceramic design, development and production support industry for electric vacuum devices is the most important part of the company. Among them, ceramic metallization is one of the company's core technologies. Based on alumina ceramic technology, the company has achieved horizontal expansion of the electronic ceramics business through its holding subsidiary Chengdu Xuci New Materials Co., Ltd. The expanded product line covers electronic ceramic materials such as aluminum nitride powder, substrates, and structural parts. Product quality has reached the international advanced level, and it has become the first domestic enterprise with mass production capacity for commercial aluminum nitride powder-substrate-structural parts-HTCC and high-end functional device products throughout the industrial chain.

Profit forecast and investment rating: The company's revenue for 2024-2026 is estimated to be 1.994/2.799/3.902 billion yuan, respectively, and net profit to mother is 0.129/0.172/0.226 billion yuan, respectively. The company's power equipment business, military business, and electronic materials business are developing collaboratively, and profitability is expected to continue to increase, giving the company an “increase in weight” rating.

Risk warning: the risk of price fluctuations of major raw materials; risk of the company's product demand falling short of expectations; risk of falling product prices due to intense market competition; risk of performance predictions and valuation judgments falling short of expectations.