Events:

The company reported that revenue in the first three quarters was 11.7 billion yuan, an increase of 37% over the same period last year, and net profit was 590 million yuan, an increase of 152% over the same period last year. 2022Q3 realized revenue of 4.6 billion yuan, an increase of 50% over the same period last year, and a net profit of 240 million yuan.

Single-quarter performance improved compared with the previous quarter, lightweight business performance beautiful, the company's aluminum alloy steam turbine business revenue increased by 45% year-on-year in the first three quarters, magnesium alloy business increased by 67%, and navigable aircraft business increased by 21%. From a month-on-month point of view, the company's 2022Q3 revenue increased by 19% month-on-month, and its performance increased by 40% month-on-month, benefiting from the continued volume of orders. 2022Q3's gross profit margin was 18.0%, up 5.5% from the same period last year and 0.9% from the previous month, mainly due to the optimization of the company's price linkage settlement mechanism.

Dual-engine-driven, lightweight business is accelerated

The company's aluminum alloy steam turbine business completes the clamping position from traditional to new energy vehicles, and is an important supplier to Chery, BYD, Great Wall and other independent and new energy vehicle manufacturers, and is expected to fully benefit from the rapid development of new energy vehicles. With the accelerated development of the domestic market of magnesium alloy business, magnesium Redding, as the leading enterprise of magnesium alloy parts in the world, has 420t ~ 4400 tons of high die casting equipment covering large, medium and small tonnage, and has the mass production capacity of large die castings. at present, benefiting from the development of new energy vehicles, the company is actively expanding the application of large magnesium alloy die castings in China, which is expected to increase the amount of magnesium alloy used in bicycles. The aircraft business promotes the construction of domestic production and manufacturing bases, speeds up the landing of new models such as Diamond DA50 and DA62, and gradually enriches the expansion of domestic scenes.

Investment suggestion

It is estimated that the EPS of the company from 2022 to 2024 will be 0.37, 0.48, 0.62 respectively. Maintain a "buy" rating.

Risk hint

Risks such as lower-than-expected global car sales and less-than-expected promotion of navigation industry policies.