The company achieved rapid growth in net profit in the first three quarters of 2022. In the first three quarters of 2022, the company achieved operating income of 519 million yuan, an increase of 72.8 percent over the same period last year, and a net profit of 320 million yuan, an increase of 120.84 percent over the same period last year. Among them, the company's operating income in the third quarter was 204 million yuan, an increase of 105.55% over the same period last year, and the net profit was 136 million yuan, an increase of 165.11% over the same period last year. The net profit was 124 million yuan, an increase of 149.85% over the same period last year.

The company's new production capacity has been put into production one after another to strengthen the company's competitive advantage in high-end applications. The company's production line is mainly 1000-ton line and 100-ton line, 100-ton line has been in a state of full-load production, 1000-ton line also has the ability of production and delivery after passing the equivalent certification. According to the 3K specification, the annual production capacity of the 100-ton line is about 120t. According to the designed wire speed ≤ 15m / min, the production capacity of the KT line is about 330t. At present, the wire speed is controlled at about 10m / min. In addition, the company is expected to complete the installation of the first ZT7+ZT9 production line of the third phase of the project by the end of 2022, the commissioning of the second ZT7+ZT8 production line and the commissioning of the third high-modulus carbon fiber production line by the beginning of 2023.

During the construction and commissioning of the third phase of the project, the company will gradually achieve the high design requirements of the kiloton line through the upgrading and optimization of technology and technology.

Issue the 2022 restricted stock incentive plan to help the company's long-term sustainable development. The company issued a 2022 restricted stock incentive plan, including senior managers, middle managers and business backbones, with the assessment target based on operating income and net profit in 2021. The target is that the growth rate of operating income from 2022 to 2025 is not less than 70%, 250%, 300% and 380%, and the growth rate of net profit is not less than 115%, 250%, 350% and 470%.

Profit forecast and investment rating. We estimate that the return net profit of the company from 2022 to 2024 is 457 million yuan, 718 million yuan and 934 million yuan, corresponding to 1.04,1.63 and 2.13 yuan EPS respectively. With reference to the valuation of comparable companies in the same industry, we think that the reasonable valuation is 40-45 times PE in 2023, and the corresponding reasonable value range is 65.2-73.35 yuan, which is better than that of the big city.

Risk hint. Downstream demand is not as expected; production progress is not as expected.