Actively promote production expansion and create scale effect
The company is a rapidly growing enterprise in the permanent magnet ferrite industry. at present, the scale of permanent magnet ferrite wet magnetic tiles ranks second in the country, second only to Hengdian East Magnetic, and the top five in the world.
Promote the production capacity expansion of permanent magnet ferrite and strive to take the lead in the world. After Vietnam Phase II 4000 ton wet piezomagnetic tile project was put into production in 2022, the company's ferrite wet piezomagnetic tile production capacity was nearly 40,000 tons; by 2024, the production capacity of permanent magnet ferrite wet piezomagnetic tile reached 60,000 tons, surpassing Japan's TDK in scale, while the technology was close to or reached the level of TDK.
The all-round advance point of "trinity" in soft magnetic field
At present, the company's metal magnetic powder core has formed 4000 tons / year production capacity, by the end of the year the company's metal soft magnetic powder core production capacity will reach 5000 tons; soft magnetic ferrite design capacity of 6000 tons / year, is expected to be put into production in the third quarter of this year; photovoltaic and vehicle inductor project phase I has entered a small batch production stage, depending on customer development progress to put into production, the second phase has been started recently.
The soft magnetic downstream demand industry is strong, and it is expected to create the second growth point of soft magnetic materials: the global demand for metal soft magnetic powder cores in various fields will be 231000 tons in 2025, and the CAGR will be 14.2% in 2021-2025. Among them, the photovoltaic sector has the largest demand, about 93000 tons, accounting for about 40.3% of the total demand, followed by the UPS computer field, accounting for 23.3%.
The performance growth trend is good, and the contribution of permanent magnet wet magnetic tiles mainly benefits from the continuous growth of the company's orders. with the company's continuous promotion of product research and development and production expansion, permanent magnet ferrites, soft magnetic materials and other products are expected to continue to expand, driving enterprise performance growth. In 2021, the operating income was 805 million yuan, an increase of 43.91% over the same period last year; the profit attributable to shareholders of listed companies was 131 million yuan, an increase of 92.05% over the same period last year; and the net profit belonging to shareholders of listed companies after deducting non-recurring profits and losses was 122 million yuan, an increase of 133.35% over the same period last year.
In the first half of 2022, the company achieved revenue of 448 million yuan, an increase of 11.19% over the same period last year; net profit of 56.7689 million yuan, down 8.67%; and non-return net profit of 47.2093 million yuan, down 19.97% from the same period last year. The decline in the company's net profit is mainly due to the expansion of revenue and the rise in the price of raw and auxiliary materials.
Profit forecast and valuation
The company is expected to achieve an operating income of 10.72%, 14.11%, 1.833 billion yuan in 2024, an increase of 33.22%, 31.65%, 29.85%, respectively, and a home net profit of 1.63, 2222, 278 million yuan, respectively, an increase of 24.08%, 36.37%, 25.32%, and a corresponding EPS of 1.35, 1.85, 2.31 yuan respectively.
Based on the closing price of 27.25 yuan on October 10, 2022, the corresponding PE for 2022-2024E is 20.14, 14.77 and 11.78 times, respectively. Cover for the first time and give a "recommended" rating.
Risk hint
The fluctuation of upstream material price is higher than expected; the construction of production expansion project is lower than expected; and the downstream demand is lower than expected.
