Incident Youyan Powder released its 2022 report. The company's revenue in 2022 was 2.78 billion yuan, which was basically the same as the previous year; the company's net profit returned to the mother was 554.4443 million yuan, a year-on-year decrease of 31.74%.

Comment:

The additive manufacturing business has entered a period of rapid growth. Youyan Additives Company's revenue in 2022 was 66.77 million yuan, and its main business profit was 16.49 million yuan. Youyan Additives had revenue of 3.56 million yuan in the first half of 2022, and profit from its main business was 7.06 million yuan. In the second half of the year, the revenue of Youyan Additives decreased by 3.36 million yuan, and the profit from the main business increased by 2.37 million yuan. The reason is that the new production capacity of Youyan Additives entered the production period in November 2022. The production capacity of aluminum alloy powder and superalloy powder used in highly profitable additive manufacturing was rapidly released, and the profitability of Youyan Additives increased rapidly.

The profit of tin powder has been growing steadily, and the profit of copper powder has declined. The revenue of the company's tin powder business in 2022 was 928 million yuan, an increase of 14.22% over the previous year; sales of tin powder were 3139 tons, an increase of 4.75% over the previous year. The revenue of the copper powder business in 2022 was 1,516 million yuan, a year-on-year decrease of 9.36%; sales of copper powder were 22,900 tons, a year-on-year decrease of 8.4%.

The fundraising project will be put into operation within the year. The Chongqing project and the Thailand project will be put into operation in June and September 2023. The Chongqing project will increase copper powder production capacity by 3,600 tons and tin powder production capacity by 400 tons; the Thailand project will increase copper powder production capacity by 5,700 tons and tin powder production capacity by 700 tons.

The electronic pulp business has entered large-scale operation. In 2022, the e-paste business had revenue of 25.73 million yuan and an output of 114.85 tons. The company takes advantage of development opportunities such as photovoltaics and new energy to increase investment in R&D in new fields, rapidly enhance the technical maturity of functional materials such as electricity and thermal conductivity, and promote independent operation in the field of photovoltaic slurry to achieve substantial breakthroughs.

Investment recommendations and ratings: The company's revenue for 2023-2025 is estimated to be 3174/43.09/4.499 billion yuan respectively, and the net profit of the mother is 135/262/309 million yuan respectively. Considering that the company's Chongqing production base and Thailand production base were put into operation in 2023 and that production capacity of 3D printed powder materials increased rapidly, the company's “buy” rating was maintained.

Risk warning: The risk that raw material prices fluctuate greatly, causing the company's continuous sales capacity and sales payback to be affected; the risk that downstream demand for powder materials is insufficient; the risk that downstream orders for 3D printed powder materials are unstable and uncertain; and the risk that performance predictions and valuation judgments fall short of expectations.