IV. Investment suggestions

The prosperity of the company's oil and gas production business continues, and the products have been introduced into the head customers; the precision processing business expands smoothly from blades to cutting tools, and driven by manufacturing upgrading and import substitution, it will become the main growth pole in the future. In addition, the company is actively promoting the diamond business and will contribute great performance flexibility in the future. Excluding Tianxuan Semiconductor consolidated table, the company's net profit from 2022 to 2024 is expected to be 1.53,2.05 and 276 million yuan respectively, an increase of 66.05%, 34.27% and 34.72% respectively over the same period last year, and the corresponding PE is 59.78x, 44.52x and 33.05x respectively, maintaining the "buy" rating.

Fifth, risk hint

Global demand for oil and gas production is declining

The progress of production expansion is not as expected.

Cultivate the diamond industry and intensify market competition.