The current situation of the company
Jingye Intelligence announced on February 20 that it intends to sign a project investment agreement with the people's Government of Haiyan County to deepen the application of nuclear chemical industry and nuclear technology application industry. Our comments are as follows:
Comment
We will add new industrial parks and lay out forward-looking application bases. The company intends to invest not less than 200 million yuan to sign the Haiyan County Industrial Land Project Investment Agreement with the people's Government of Haiyan County. According to the announcement: 1) the construction period of the project is 2 years, with a land area of about 32 mu, which is operated by a newly established wholly-owned subsidiary of Jingye Intelligence. 2) the amount of investment is not less than 200 million yuan, and the investment in fixed assets is 150 million yuan. 3) the company plans the industrial park to achieve an annual production capacity of 25 sets of nuclear technology applications and nuclear chemical intelligent equipment, while actively carrying out simulation experiments to promote the development of domestic nuclear chemical technology.
The glass solidification technology of radioactive waste liquid ranges from 0 to 1. According to the disclosure by the company's official account in November last year, the China Institute of Atomic Energy Research went to Jingye Intelligence to inspect and accept the engineering prototype of the cold crucible. Cold crucible is the international cutting-edge glass curing technology for the treatment of high-level liquid waste. Jingye Intelligence is currently actively cooperating with other units, and we think it is expected to enter the stage of engineering application. According to the announcement, the industrial base will study the process of glass solidified special glass beads and small batch trial production, forming a supply capacity of 300 tons / year of glass beads.
The management strategy will be upgraded and the 14th five-year Plan is clear. We have recently organized exchanges, and the company will enter a new round of development in 2023, arousing the vitality of innovation around the whole industry chain of the nuclear industry. We believe that the company's follow-up development in talent incentives, new project management and regionalization is worth looking forward to. Considering the simultaneous promotion of the IPO project and the two major industrial parks, we believe that the company's long-term output value reserves are heavy, and the growth curve is full of potential.
Profit forecast and valuation
Considering that the company's delivery in the fourth quarter was slightly higher than expected, we raised the 2022 net profit by 7.6% to 118 million yuan. Taking into account the phased increase in R & D and management costs brought about by the new business in 2023, we lowered the net profit by 5.3% to 150 million yuan in 2023. At the same time, we introduced a net profit of 210 million yuan in 2024. The current share price corresponds to 43.4 pound 31.8x in 2024. Considering that the plate premium may be relatively reduced in 2023, and there may be a potential downward shift in the company's valuation center, we reduce the company's target price by 22% to 89.6 yuan to maintain an outperform industry rating, corresponding to the company's 2023 Company49x and 36xP/E in 2024, which has 13% upside space compared to the current stock price.
Risk
The risk of income fluctuation in a single quarter, the second growth curve is lower than the expected risk and so on.