The company released its semi-annual report for 2023:
In 2023, the operating income of H1 company was 560 million yuan, + 15.5% compared with the same period last year; the net profit of returning to the mother was 53 million yuan, + 1% compared with the same period last year; and 40 million yuan was deducted from the non-returning company, which was + 54.9% compared with the same period last year. In 2023, the operating income of Q2 company was 308 million yuan, + 25.5% year-on-year and + 22.7% compared with the same period last year; the net profit returned to the mother was 31 million yuan, + 48.7% year-on-year and + 43.2% compared with the same period last year; and 21 million yuan was deducted from the non-home company, which was + 49.8% year-on-year and + 14.8% compared with the same period last year. The government subsidy of 18 million yuan was confirmed in the non-recurrent profit and loss in the first half of the year.
The company's fund-raising project is progressing steadily. In the first half of the year, the total investment progress of the company was 96.37%, the main production equipment was basically put into production, and some of the equipment was put into production and commissioning. With the further improvement of the domestic substitution rate of high-end connector materials used in new energy vehicles, 5G communications and other fields, the sales revenue of high-conductivity and high-strength copper alloy materials increased by 13.34% compared with the same period last year. Among them, the international market sales revenue of high-conductivity and high-strength copper alloy products represented by rail transit end-ring guides increased by 23.36% compared with the same period last year.
In 2023, H1 CT tube components business revenue increased by 36.74% compared with the same period last year.
In terms of production capacity and customers, according to the announcement, the company has achieved an annual production capacity of 6000-8000 sets of CT and DR ball tube components, while it has completed an annual production capacity of 30,000 sets of CT and DR ball tube materials, components research and development and manufacturing base construction planning demonstration, the company's main customers are Siemens Medical, Wanruishi, Lianyuan Medical, Kunshan Medical Source and so on.
With the deepening of technological reform, the rate of finished products is expected to continue to improve. In the first half of the year, the company successfully optimized the manufacturing process of 3MHU series CT ball tube rotor assembly, high heat capacity 5MHUCT ball tube rotor assembly and welding process, which is expected to improve production efficiency.
The private aerospace market is vast, and the rocket nozzle business is expected to expand rapidly.
In terms of customers, in the first half of 2023, a total of 97 rockets were launched worldwide, and the company's products have been successfully supplied to Vermilion Bird II. With the successful first flight of Tianbing science and technology liquid carrier rocket and Blue Arrow Aerospace actively preparing for re-flight, the private space market may become a new performance growth point of the company.
In terms of production capacity, the company has started an industrial planning with an annual production capacity of 1000 sets of materials, parts and components for the inner wall of the rocket engine thrust chamber and implemented it in stages. According to the announcement, the company has built 50-100 sets of finished product processing capacity. At present, it is the only R & D and manufacturing enterprise in China with the ability to supply parts from materials to finished products.
In terms of technology, the company focuses on the manufacturing field of copper-chromium-zirconium and copper-chromium-niobium, and the new generation of liquid rocket engine thrust chamber inner wall CuCrNb powder making and molding technology has made a breakthrough.
The company pays attention to material R & D investment. H1 R & D expenditure in 2023 is 24.83 million yuan, an increase of 50.5% over the same period last year, accounting for 4.4% of income. Income such as optical module chip base materials has increased considerably.
The production and marketing of √ high-performance metal chromium powder is growing steadily: the company's main customers are Western Superconductor, Siemens, GFE and other well-known enterprises. In 2023, the company will continue to build an R & D and manufacturing base with an annual output of 2000 tons of high-performance metal chromium, forming an annual production capacity of 1000 tons of vacuum grade high-purity chromium, promoting the development of materials in key areas of the country.
√ new generation of copper-ferroalloy materials market verification: mainly around large-size OLED backplane, high-power circuit board welding head, electromagnetic damping magnetoelectric functional materials for R & D and market development. The fund-raising project arranges 5700 tons of materials, products and powder. at present, all kinds of products are being mass-produced and verified in customer factories at home and abroad.
The income of √ module chip base has greatly increased: the company's main customers are Finisar, Tianfu Communications, Global Radio and Television, Dongguan Xuntao, etc., the company's annual production capacity of 2 million pieces is progressing smoothly, and sales revenue increased by 379.58% in the first half of the year compared with the same period last year.
Investment advice:
We estimate that the operating income of the company from 2023 to 2025 is 13.75,17.92,2.193 billion yuan respectively, and the net profit is 1.21,1.63 and 212 million yuan, respectively, and the corresponding EPS is 0.22,0.29,0.38 yuan per share, respectively. The current stock price corresponds to 53.7,40,30.7 times of PE. Maintain the "buy-A" rating, with a 6-month target price of 17.31 yuan per share, corresponding to a 23-year PE of 80 times.
Risk hint: the promotion of new products is not as expected, the demand is not as expected, and the progress of the project is not as expected.