Anfu Technology update: Low-valuation DUV industry chain target 0728 -- Tianfeng Home Appliances Team

English summary

Main business Nanfu Battery expects 2026 performance of about RMB 1 billion, maintaining steady single-digit growth. The company currently holds 46% stake, and the remaining 54% is expected to be acquired through a combination of share payment and cash; it is the company's stable cash cow business. Currently holds 8.5% of Yilianwei, with the stake expected to further increase in the future; Yilianwei has pioneered a silicon photonic heterogeneous integrated thin-film lithium niobate technology platform, establishing global technological leadership in single-wavelength 200Gbps and 400Gbps optical chips for data center silicon photonics. Current revenue mainly comes from passive components (about RMB 100 million in 2026, expected RMB 300-400 million in 2027); 1.6T optical modules have been sampled to core customers, with verification results expected by end of 2026, production capacity already locked in advance, and future cooperation with leading customers to launch next-generation optical modules; currently holds 10% of Huashengmai, and has established a joint venture with Huashengmai. The joint venture has two business segments: 1) sales of light sources for GKJ (lithography) machine manufacturers, currently not yet scaled; 2) the after-sales maintenance market for GKJ, with an existing market size of RMB 20 billion, and annual increments thereafter, high entry barriers, and high profitability.