Investment logic

Focus on micro-nano metal powder, rich product matrix. The company is one of the few enterprises in the industry that have both carbonyl iron powder and atomized alloy powder production technology. in addition to external sales, it can also be deeply processed into a series of products with higher added value, such as soft magnetic powder, metal injection molding feed, wave-absorbing materials and so on. widely used in 3C precision parts, electronic components, auto parts, military wave absorption, 3D printing, photovoltaic energy storage and other terminal fields. In 22 years, the company's net profit of returning to the mother was 99 million yuan, which increased by 11.4%. The net profit of 23Q1 increased by 11.4%, and decreased by 39%. The unit price decreased mainly due to the change in the product structure of atomized alloy powder. In 22, the revenue of atomized alloy powder accounted for 31.88%, carbonyl iron powder 27.99%, soft magnetic powder 27.81%, and metal injection molding feed 14.25%. In January, 23, the company raised no more than 2.6 billion yuan at the price of 35.19 yuan per share to replenish the flow.

Carbonyl iron powder + atomized alloy powder as the base powder, production capacity expansion, cost reduction continue to promote.

The carbonyl iron powder of the company has a particle diameter of micron, with an annual production capacity of 5205 tons, of which about half are sold out, and the other half produce deep-processed products such as soft magnetic powder. The company broke the monopoly of BASF in Germany and currently accounts for more than 20% of the domestic carbonyl iron powder market. The 6000-ton IPO investment project is expected to be put into production in September 23. The "annual production of 100000 tons of metal soft magnetic micro-nano powder project" is expected to be put into production one after another in 24 years, while promoting industrialization to reduce the production line. The company has sold 723 tons of atomized alloy powder in 22 years, and the 4000-ton IPO project is expected to be put into production in September 23, including 3D printing powder, high-performance magnetic powder core powder and so on.

Three kinds of deep processing products are spreading wings and blooming in many fields. The company takes soft magnetic powder, MIM feed and absorbing materials as further deep processing products, in which soft magnetic powder is used to make integrated molding inductors and is used in high demand growth fields such as integrated circuits, communications, automotive electronics, new energy and so on. The customers are Delta Electronics Group, the leader of electronic components, Samsung Motor of South Korea, TDK of Japan, Visch Group of the United States, etc., with 22-year sales of 2378 tons. Metal injection Molding Feed (MIM) is mainly used in mobile phone parts, wearable intelligent terminals, auto parts, medical devices, aerospace parts and other fields, the customer is Apple Inc / Samsung industrial chain supplier Jingyan Technology, etc., with 22-year sales of 604t The main products of wave-absorbing materials are wave-absorbing powder, patch and paint, which are mainly used in mobile communications such as mobile phones, RFID, base stations, computers, human protection and national defense stealth technology, etc., with 22-year sales of 36 tons.

Earnings forecasts, valuations and ratings

It is estimated that the company's revenue in 23-25 years is 488 million yuan, 625 million yuan and 843 million yuan respectively, and the net profit returned to the mother is 118 million yuan, 159 million yuan and 224 million yuan respectively, the corresponding EPS is 1.38,1.86,2.62 yuan respectively, and the corresponding PE is 36 times, 26 times and 19 times respectively. The valuation gives the company 35 times PE in 24 years, with a total market capitalization of 5.6 billion yuan and a target price of 65.21 yuan per share, giving a "buy" rating for the first time.

Risk hint

Capacity expansion is not as expected; market demand is not as expected; senior executives reduce the risk and so on.