Event: Youyan Powder Distribution reported in 2022 that the company's operating income was 1.565 billion yuan, an increase of 23.5% over the same period last year; the net profit belonging to shareholders of listed companies was 32.5632 million yuan, down 3.47% from the same period last year.
Comments:
Step by step, the company's 3D printing materials are expected to contribute major profit increments in the future. The company independently developed the preparation technology of 3D printing powder materials. At present, the overall technology has reached the international advanced level, and some of the technologies have reached the international leading level. In 2021, the company newly set up Yancheng Technology Co., Ltd., with a shareholding ratio of 80%. In the first half of 2022, the company continued to promote the upgrading of the production line in the field of material increasing manufacturing, completed the development of high-quality 3D printing and high fluidity aluminum alloy powder preparation technology in the first half of the year, added two sets of air atomization VIGA production line construction, and completed the transformation and installation of Shandong water atomization production line.
The company's overall sales of copper-based metal powder materials are stable, and the export volume has increased significantly. In the first half of 2022, the company sold 13000 tons of copper-based powder materials, down 4.4 per cent from a year earlier, but exports increased by 32 per cent year-on-year. The green preparation technology of high-quality electrolytic copper powder independently researched and developed by the company has been relatively mature and reached the international advanced level, and high-quality electrolytic copper powder has also achieved batch and industrial production.
The company's microelectronics tin-based welding powder material sales growth, profit contribution is obvious. In the first half of 2022, the company's overall sales of tin-based powder materials increased by 8.5%, sales of major customers increased by 15.4%, and solder paste increased by 14%. The company independently developed a series of lead-free environment-friendly microelectronic welding powder preparation and material design technology, the company's welding powder preparation technology has reached the international advanced level, some of the technology has reached the international leading level, and has obvious advantages in the field of middle and high-end application technology.
Investment advice and rating: although the company's first-half performance was affected by the decline in copper fund sales of powder materials compared with the same period last year, the company's sales of tin-based solder powder materials and 3D printing materials increased, so it raised the company's target price and maintained the company's "buy" rating. It is estimated that the operating income of the company from 2022 to 2024 will be 2.906 yuan RMB 3.661 billion yuan respectively, and the net profit of returning to the mother will be 0.89 billion RMB 1.34 billion yuan respectively. With reference to comparable company Boqian Xinliang and Steel Research Gaona with forward price-to-earnings ratios of 50.1 and 54.4 in 2022, the company is given 52 times PE. The reasonable valuation of the company in 2022 is 4.628 billion yuan, which is 37.98% higher than the current market capitalization of 3.354 billion yuan.
Risk hints: the risk of sharp fluctuations in raw material prices; the risk that new domestic and foreign production bases are not completed and put into production on time; the risk that the development of 3D printing industry is not as expected; and the risk that performance forecasts and valuation judgments fall short of expectations.