Changjiang Securities: First Buy Rating for Canqin Technology, 5G-A Cycle Rising, HTCC Adds Growth.

Changjiang Securities recently pointed out in a research report that Canqin Technology is a leading enterprise in high-end electronic ceramics. Reviewing the historical financial data of the company, the revenue from its filter products accounts for over 80% annually, showing strong cyclical characteristics and a high correlation with the capital expenditures of wireless communication operators. The operating rate significantly affects its gross profit margin, with a strong profit elasticity. In 2025, influenced by the capital expenditures of operators on 5G-A, the company's main business of filters is expected to see a significant increase in cycles, achieving substantial growth; the HTCC production capacity is expected to be gradually released in 2025, with the addition of consumer electronics business enhancing the company's growth potential, improving the company's future performance stability, and also having the potential to be applied in various fields such as robotics in the future. Reviewing the company's financial data, it is believed that the operating rate has a significant impact on the company's profitability. When revenue grows rapidly and the operating rate increases, it may lead to an improvement in gross profit margin, a decrease in expense ratio, and an increase in net profit margin. First coverage, with a "Buy" rating, recommended focus.