Chujiang New Materials was founded in 1999 and has formed two plates of advanced copper-based materials and military carbon materials through endogenous growth and epitaxial mergers and acquisitions for more than 20 years. The company has production and R & D bases in Anhui, Shanghai, Guangdong, Jiangsu and Hunan, with six categories of products: precision copper strip, high-end copper conductor, copper alloy wire, precision special steel, carbon fiber composite materials, high-end equipment and new materials.
Copper-based materials rank among the leaders in the industry and are expected to improve their profitability. In 2021, the company's copper plate and strip output of 300000 tons, firmly ranking first in the country, copper conductor output of 300000 tons, copper alloy wire output of 50, 000 tons, are located in the leading position of the subdivision industry. The company has a high proportion of copper recycled materials, significant economies of scale, sales end to set up a national marketing network close to customer needs, significant advantages. At the end of the 14th five-year Plan, the company planned to produce 1 million tons of copper-based materials. With the continuous improvement of the concentration of the copper industry, copper profitability is expected to pick up, overlay the company's capacity to increase and products to high-end, copper-based materials to the company's performance contribution is expected to continue to grow.
Skybird high-tech: domestic carbon fiber preform leader, continuous increase in production capacity, business expansion to the lower reaches. The company's carbon fiber composite business is undertaken by its subsidiary Skybird Hi-Tech. In 2021, Skybird Hi-tech realized a net profit of 188 million yuan, accounting for 30.94% of the company's net profit.
Skybird Hi-Tech is the only domestic enterprise to industrialize the production of aircraft carbon brake preform, and it also has an absolute market position in the field of special-shaped preform in China. Driven by demand, Skybird high-tech production continues to improve. In addition, in 2020, Skybird set up a Wuhu Skybird subsidiary to expand its business downstream, and its first phase of 400 tons of production capacity is expected to be completed and put into production in September this year.
Dingli Technology: the demand for thermal equipment continues to grow, and the high-end materials business is ready to start.
The company's high-end equipment business is undertaken by subsidiary Dingli Technology. In 2021, Dingli Technology achieved a net profit of 87 million yuan, accounting for 14.27% of the company's net profit. Dingli science and technology thermal equipment provides equipment support for China's aerospace, national defense and military industry, and national key projects. Relying on the leading thermal equipment manufacturing technology, top technology layout of high-end materials field, 3D printing structure has achieved batch delivery, high-purity toner products have completed technical verification, construction of tantalum carbide industrialization project to fill the domestic material gap. In 2021, Dingli Science and Technology relocated the new plant to solve the capacity bottleneck, and the pace of order delivery gradually accelerated, achieving operating income of 314 million yuan, an increase of 83.40% over the same period last year.
We expect the company's 2022-2024 net profit to be 7.18,8.81 and 1.089 billion yuan, an increase of 27%, 23% and 24% over the same period last year. The previous share price PE is 20,16,13 times, covering for the first time and given a "highly recommended" rating.
Risk tips: the procurement of thermal equipment and carbon fiber composite materials in the military and photovoltaic industries is not as expected; the expansion of copper-based materials and carbon materials is not as expected; the profitability of copper products is not as expected.
