Event: Chujiang Xinfa cloth reported in mid-2022 that the company's operating income was 20.571 billion yuan, an increase of 19.23% over the same period last year, and the net profit belonging to shareholders of listed companies was 281 million yuan, an increase of 8.74% over the same period last year.
Comments:
The company is committed to the research and development, manufacture and sales of advanced copper-based materials. The company has a unique profit model, sound marketing model and leading R & D and manufacturing capabilities, the main products include precision copper strip, high-end copper conductor, copper alloy wire and precision special steel. According to the mid-2022 report, the company sold 412700 tons of copper-based materials in the first half of the year, an increase of 4.84 percent over the same period last year. In 2021, the company has an annual output of 300000 tons of high-precision copper alloy plate and strip, ranking first in the country.
Subsidiary Skybird high-tech deep ploughing carbon fiber composite field. The company has technical advantages, talent advantages and R & D advantages in the field of high-performance carbon fiber composites. At present, the core products include special fiber preform and special fiber cloth. The products are widely used in aerospace, national defense, high-speed rail, UAV, automotive, photovoltaic, wind power and other fields. In the first half of 2022, as the fund-raising project was put into production, the production capacity of carbon fiber composites was expanded, and the operating income of carbon materials business reached 436 million yuan, an increase of 16.25% over the same period last year.
The core team has rich experience, and the company is involved in the field of thermal equipment and new materials. The company is the controlling shareholder of Dingli Technology, and its products have strong market competitiveness and are exported to Europe and the United States and other advanced countries and regions.
At present, the company is the only high-end thermal equipment enterprise in China with carbon ceramic thermal equipment, vacuum heat treatment equipment, new environmental protection equipment, powder metallurgy equipment and other products. In carbon fiber composite equipment, powder metallurgy thermal equipment and other fields, the company has become the most complete range of domestic products, can provide customers with system solutions of new materials and equipment manufacturers.
Investment advice and rating: the company's operating income from 2022 to 2024 is estimated to be 401.6 PE, respectively, and the net profit returned to the parent is 67,880,058 million yuan, respectively. With reference to the expected price-to-earnings ratios of Jinbo shares of comparable company and Tianyi, which are 44.1 and 33.6, the company is given a reasonable valuation of 20.1 billion yuan in 2022. There is 47.8% room for a rise from the company's current market capitalization of 13.599 billion yuan, giving the company a "buy" rating for the first time.
Risk hints: the risk of sharp fluctuations in raw material prices; the risk that the construction of copper-based materials and carbon fiber materials projects are not up to expectations, resulting in the company's production expansion is blocked; the risk of performance forecasts and valuation judgments are not up to expectations.
