Feilihua (300395.SZ) — Initial Coverage

Steady Semiconductor Quartz Growth; E-Glass Fabric Ramp Opens Next Chapter

Key Data Snapshot

Metric	Value
Ticker	300395.SZ
Rating	Buy (initial)
Report date	March 27, 2026
Closing price	RMB 97.10
52-week high / low	RMB 135.88 / 42.22
Market cap	507.12 (RMB 100 mn)
Free-float market cap	496.79 (RMB 100 mn)
Total shares	522.27 million
Debt-to-assets	20.51%
Book value per share	RMB 8.71

Earnings Forecast & Valuation

Metric	2023	2024	2025E	2026E	2027E
Revenue (RMB mn)	2,091	1,742	2,234	4,595	7,849
Growth (%)	21.59%	-16.68%	28.25%	105.71%	70.81%
Net profit to parent (RMB mn)	538	314	454	1,323	2,590
Growth (%)	10.01%	-41.56%	44.42%	191.56%	95.72%
EPS (RMB)	1.03	0.60	0.87	2.53	4.96
ROE (%)	13.71%	7.61%	10.15%	24.23%	34.98%
P/E	94.32	161.39	111.75	38.33	19.58

Investment Thesis

I. Quartz e-glass fabric may enter a volume “year one”

Gen-3 low-Dk fabric strengths:

High-purity quartz fiber substrate
Very low dielectric constant
Ultra-low dissipation factor
Excellent high-temperature performance
Very low CTE

Trend: As chip vendors roll out rack architectures, cable-free inside the rack may become mainstream. To close the performance gap vs. copper cabling, quartz e-glass fabric is a leading candidate.

Demand: AI, high-frequency comms, etc. → potential step-up in quartz fabric pull; inflection approaching.

Company: Among the few domestic suppliers — positioned to benefit.

II. Dual-use quartz glass leader; full-chain optionality

Position:

One of few global players with volume quartz glass fiber
Early domestic quartz supplier qualified into semiconductor fab supply chains
Leading supplier of quartz glass fiber for aerospace

Portfolio:

Vapor-phase, synthetic, and electric-melt quartz materials & parts
Quartz glass fiber & 3D woven preforms
Composites based on quartz fiber

Products: ingots, cylinders, tubes, rods, plates, wafers, devices; quartz glass fiber lines.

End markets: semiconductor, aerospace, optics, solar, optical comms.

III. Operating inflection

History:

2021–2023 revenue / net profit CAGR 30.71% / 20.53%
2024 revenue -16.68%, net profit -41.56% (phased downstream softness + competition)

2025 turn:

9M25 revenue 13.82 (RMB 100 mn), +5.17% YoY — semiconductor steady; aerospace orders recovering
Net profit 3.34 (RMB 100 mn), +42.23% YoY

Margins:

2024 gross margin 42.17%, -7.31 ppt YoY
9M25 gross 48.96%, +6.60 ppt YoY; net margin 22.47%, +3.92 ppt YoY

R&D: 9M25 R&D / revenue 14.32% — supports technology lead.

IV. Semiconductor: solid core growth

Quartz materials & parts are used across etch, diffusion, oxidation, etc., as carriers and chamber consumables.

Qualifications:

TEL, Lam, AMAT, and Hitachi High-Tech
Subsidiary Shanghai Shichuang quartz parts qualified on AMEC and NAURA tools

Under demand and localization policy, semiconductor quartz sales expected to grow steadily.

V. Defense: radome + thermal protection

Radomes: low Dk / low loss → high-performance airborne radomes; new fighters + legacy avionics upgrades.

TPS: quartz composites for re-entry / hypersonic thermal protection — potential volume as programs scale.

VI. Private placement: quartz e-glass yarn project

RMB 624 mn capex (equity raise up to RMB 300 mn)
1,000 t/yr quartz e-glass yarn
Entity: Hubei Dingyi New Materials (wholly owned)
Post-tax project IRR 20.72%; payback 5.93 years (incl. construction)

Strategic: Yarn is the feedstock for quartz e-fabric; technical complexity → near-term supply gap. Project reinforces yarn + fabric integration.

Segment Forecast

Segment	2025E	2026E	2027E
Quartz materials
Revenue (RMB 100 mn)	13.75	23.07	31.43
Gross margin	55.86%	61.35%	63.68%
Quartz fabricated parts
Revenue (RMB 100 mn)	8.22	22.49	46.65
Gross margin	39.52%	53.07%	58.41%
Other
Revenue (RMB 100 mn)	0.37	0.39	0.41
Gross margin	20.00%	20.00%	20.00%

Risks

Macro volatility
Product price & margin pressure
New businesses slower than expected

Source: Huayuan Securities Research