Juejin New Materials Track: Youyan Composites is about to go public—an under-supplied “hard tech” leader in metal composite materials

Ask AI · How does the military-civilian collaboration model help companies achieve high-growth paths?

This article source: Times Business Research Institute Author: Chen Jiaxin

On March 30, 2026, Yanye Refractory Materials (688811.SH) officially launched its application for the STAR Market, with an issue price of 6.41 yuan per share and a fundraising scale of 836 million yuan, beginning a new journey in its capital market. This “national team” enterprise, deeply engaged in the metal composite materials field for over thirty years, has its unique investment value becoming the focus of market attention.

As a central enterprise directly under the State-owned Assets Supervision and Administration Commission of the State Council—an industrialization platform under China Yanye, Yanye Refractory Materials is not only a leader in the domestic metal-based composite materials field but also a scarce target with both high-tech and “specialized, refined, distinctive, innovative” qualities. Its value is concentrated in its hard-to-duplicate resource endowment, the growth logic of military-civilian collaboration, and a clear, predictable growth path.

Yanye Refractory Materials originated from the National Composite Materials Engineering Center established in 1992. With over thirty years of continuous cultivation, it inherits the dedication and innovation spirit of three generations of R&D personnel. As a frequent participant in national scientific research projects, Yanye Refractory Materials has undertaken major scientific tasks such as the “863” Program, the “973” Program, and the National Key R&D Program, becoming one of the core forces solving “bottleneck” problems in the materials field.

Relying on a strong R&D system, Yanye Refractory Materials has built a full-chain technological R&D advantage. As of the end of June 2025, it held 202 authorized patents, including 146 invention patents, fully demonstrating the originality and value of its technology. Meanwhile, as the supporting unit of the National Nonferrous Metal Composite Materials Engineering Technology Research Center, it has led or participated in the formulation of 8 national and industry standards, guiding industry technical norms development.

Yanye Refractory Materials has formed a complete set of technologies for material development and product manufacturing, including powder hot isostatic pressing, stirring casting, pressure infiltration techniques, as well as processing technologies like rod and profile extrusion and precision forging.

The ultimate value of technology is reflected in breakthroughs in products and the breadth of applications. In the military industry, Yanye Refractory Materials is the first domestic company to mass-apply aluminum-based composite forgings in aerospace (covering helicopters and fixed-wing aircraft), and has become the only domestic supplier in this niche market. Its silicon-aluminum and graphite-aluminum composites have been successfully applied in military electronics, effectively solving key issues such as heat dissipation of aerospace electronic chips, achieving import substitution.

In the civilian market, Yanye Refractory Materials has successfully transformed military technology into civilian applications. It pioneered the development of ultra-thin mobile phone battery compartment products, enabling large-scale application of aluminum-based composites in smartphones at the tens of millions level; it also innovatively used hot isostatic pressing to prepare titanium-aluminum bimetallic composite materials, successfully developing titanium-aluminum mid-frames for smartphones, which have been widely used in high-end mobile phones from leading manufacturers and become their main supplier.

Additionally, Yanye Refractory Materials has reached a domestic leading and internationally top level in basic materials such as special aluminum alloys (e.g., aerospace heat pipe profiles, aerospace precision tubes) and special copper alloys (e.g., high-nickel white copper, manganese copper resistance alloys). Its products have entered the supply chains of top global clients like Essilor-Luxottica.

Riding the Wave, Expanding the Blue Ocean

The track that Yanye Refractory Materials is on is currently experiencing both policy and market opportunities. Its main business belongs to the fields of advanced nonferrous metals and composite materials explicitly encouraged by the “Guidance on Adjusting Industrial Structure (2024)” and the “Guidance on the First Batch of Demonstration Applications of Key New Materials (2024).” Policy dividends will continue to be released, providing solid development support.

From a market perspective, China’s metal composite materials market is in a rapid growth phase. According to data from the China Composite Materials Industry Association, the market size grew from 26.4 billion yuan in 2020 to 42 billion yuan in 2024, with an average annual compound growth rate of 12.31%, and is expected to further grow to 61 billion yuan by 2027. The growth driver of this vast market mainly stems from explosive demand in several core downstream fields.

In aerospace and military industries, with steady growth in defense spending, the iteration of new technologies such as next-generation helicopters, high-resolution satellites, deep space exploration equipment, and domestically produced large aircraft drives new material demands. Yanye Refractory Materials’ products are widely used in helicopters, fighter jets, missiles, satellites, and other advanced equipment, with demand showing strong rigidity and sustainability.

In military electronics, the rapid upgrade of information equipment has created huge demand for materials with high thermal conductivity and adjustable thermal expansion coefficients. According to Qianzhan Industry Research Institute, the market size of China’s military electronics industry is expected to reach 501.2 billion yuan in 2025, providing enormous space for Yanye Refractory Materials’ metal-based composites.

In the smart terminal sector, the trend of thin and high-strength mobile phones has been established. With successful cases in smartphone structural components, Yanye Refractory Materials has achieved large-scale application at the tens of millions level. As more models adopt these materials, its market penetration rate is expected to continue rising.

Furthermore, the localization and industrial upgrading of semiconductor equipment and new energy vehicles also open up new growth opportunities for high thermal conductivity, high stability metal composites, and special alloys produced by Yanye Refractory Materials.

Value Realization, Growth Expectation

The investment value of Yanye Refractory Materials first lies in its scarce industrialization platform attributes and solid market position. It is not merely a scientific research institution but a platform capable of large-scale, multi-product mass production.

In multiple subfields, Yanye Refractory Materials maintains leading positions as “domestically first” or “main supplier/only supplier,” creating high entry barriers for customers and ensuring strong customer loyalty.

Its growth path is clearly visible, and the projects funded by this offering are highly targeted. Financial data shows that from 2022 to 2024, Yanye Refractory Materials’ operating income increased from 414 million yuan to 610 million yuan, with core technical product revenue accounting for over 90%; net profit attributable to parent after non-recurring gains and losses grew from 23.65 million yuan to 55.36 million yuan, indicating high profitability and clear growth potential.

The projects funded by this offering are very specific: the “Phase II Advanced Metal-Based Composite Material Industrialization Project” aims to expand production of graphite-aluminum composites, mobile phone structural parts, and other high-value-added products, directly meeting the strong demand in aerospace, military electronics, and smartphones, and solving current capacity bottlenecks; the “R&D Center Construction Project” focuses on future development, aiming to continue tackling next-generation materials such as ultra-high thermal conductivity, lightweight, high-strength, and toughness materials, ensuring Yanye Refractory Materials’ long-term technological leadership; supplementing working capital will further enhance operational strength, enabling more flexible market opportunities.

Yanye Refractory Materials’ success is also attributed to its “military industry as the foundation, military-civilian synergy” flywheel effect. The stringent requirements of the military industry have honed top-tier performance and reliability, establishing a high-end, trustworthy brand image; successful civilian market transformation (such as in smartphones) has opened vast market space, achieving scale effects and rapid performance growth. These two aspects reinforce each other: military technology provides quality assurance for civilian products, while civilian market gains feed back into R&D investment, further consolidating technological advantages in the military sector.

Looking ahead, driven by the “R&D—transformation—industrialization” integrated development strategy and supported by capital markets, Yanye Refractory Materials is expected to develop into a world-class high-tech enterprise in metal composite materials.