Core ideas:
The main oil composite business is booming, and the strategic achievements of major customers are remarkable. Focusing on composite superhard materials, coalfield mining composite is the main source of income, accounting for more than 55% in 2021.
At present, the oil price is high, the company's oil composite is better suited to the PCD bit, fully benefiting from the recovery of the oil service industry, 2022H1 revenue growth of more than 30%. The scissors gap between downstream major customers CR1 and CR5 has widened, and the products have been continuously promoted in the verification end of overseas oil service customers. It is expected that the company will continue to benefit from the upward cycle in recent years, and the sector will maintain a high boom.
With the gradual improvement of the penetration of super-hard tools, the company's precision machining business is developing rapidly. The main products are super-hard tools and blades, and 70% of the downstream market comes from automobiles. The development of new energy vehicles accelerates the demand for lightweight materials, driving the growth of super-hard tools. By 2021, the penetration rate of super-hard tools in China is less than 15%, and there is plenty of room for improvement. The company's advantages in super-hard cutting tools include material advantages, tool design advantages and tool machining ability. In recent years, the development of the company's precision processing business has accelerated, and the revenue of precision processing business in 2021 increased by 52.1% compared with the same period last year. 2022H1 still maintains a growth rate of more than 25%.
CVD cultivates diamonds to open up room for growth. Nurture diamond in recent years in the field of high growth in the consumer sector, the company through its subsidiary Tianxuan Semiconductor focus on MPCVD diamond cultivation, 2022H1 Tianxuan has achieved a merger. The technical iteration of MPCVD in the future lies in the stable operation of high power, the improvement of deposition rate and so on. According to Tianxuan semi-guide official account, there is already equipment input, which will bring the second curve for the company's performance. The company's advantage lies in its complete machine manufacturing capacity, flexible capacity expansion and strong coordination effect with the main superhard composite materials.
Profit forecast and investment advice. It is estimated that the net profit of homing from 2022 to 2024 will be 1.52 billion yuan 236,309 million yuan, respectively, and the EPS will be 0.31 million yuan per share. With reference to the comparable company's 2022 valuation level, it will give the company 50 times PE in 2022, corresponding to 15.57 yuan / share reasonable value, and give it a "buy" rating.
Risk hint. The risk of CVD capacity expansion falling short of expectations; domestic demand for nurtured diamonds growing less than expected; and orders from major customers of oil composites falling short of expectations.