Event: the company disclosed on October 26, 2022 that its operating income in the first three quarters was 394 million yuan, an increase of 26.60% over the same period last year, and its net profit was 129 million yuan, an increase of 83.01% over the same period last year. The net profit of 110 million yuan was deducted from the same period last year, an increase of 88.97% over the same period last year.
Comments:
Q3 revenue and net profit are both high, showing endogenous toughness. The Q3 quarter realized operating income of 132 million yuan (16.09%), net profit of 40 million yuan (83.19%), and non-return net profit of 38 million yuan (99.62%).
The core technology plan of the 14th five-year Plan promotes the sustained growth of superhard materials and import substitution.
The "14th five-year Plan" intelligent manufacturing development plan lists "ultra-precision machining" as the key core technology of intelligent manufacturing technology. The company actively seizes the opportunity of domestic manufacturing upgrading and import substitution of super-hard tools, and the precision processing business is expected to achieve sustained growth.
R & D innovation promotes the core competitiveness of products and the growth potential of the international market. In August, the Department of Science and Technology of Henan Province rated the R & D and application project of φ 74mm super-large cutting caliber PCD blade as the key R & D special project of Henan Province in 2022, and the product quality and product core competitiveness are expected to be further improved.
In September 2022, Sifangda unveiled all kinds of independently developed new products at AMB in Germany and IMTS in the United States, showing its cutting-edge technology in the field of superhard materials in an all-round way. Sifangda exhibitors' products have been widely praised by international customers, and the company's superhard material products are expected to achieve remarkable results in the growth of the international market.
The cultivation of diamonds is popular and has broad prospects for development. From April to September of GJEPC,2022, India's exports of cultivated diamond blanks increased by 32.89% compared with the same period last year. From April to September 2022, India's imports of cultivated diamond blanks increased by 60.55% compared with the same period last year, with great potential in the international market.
In the downstream sector, the company's holding subsidiary and Hainan Diamond Jewelry Co., Ltd. signed the Strategic Cooperation Framework Agreement on July 28, 2022 and formed a strategic partnership to carry out innovative cooperation in fostering diamond processing and sales, further promoting the development of CVD nurturing diamond business.
Investment rating: Sifangda, as a leading enterprise of composite superhard materials, has been ploughing the field of superhard materials for many years, R & D and innovation to promote product upgrading, and cultivate diamond development space for the future.
It is estimated that the net profit of homing from 2022 to 2024 is 1.43,2.22 and 348 million yuan respectively, and the corresponding PE from 2022 to 2024 is 42,27 and 17 times. Cover for the first time and give a "recommended" rating.
Risk tips: intensified competition in the industry, the cultivation of diamond business is not as expected, and the risk of technology iteration