According to the 2023 semi-annual report, the company realized operating income of 848 million yuan, an increase of 32.71% over the same period last year, and the net profit belonging to shareholders of listed companies was 164 million yuan, an increase of 82.31% over the same period last year.
Comments:
The company is a leading enterprise in the amorphous alloy industry. The company's amorphous alloy products include amorphous alloy ribbons and amorphous cores, which are mainly used in the field of power distribution. Compared with silicon steel, another main material used in distribution transformer, amorphous alloy material has outstanding characteristics of energy saving and environmental protection, and is a whole life cycle recyclable green material of "manufacturing energy saving, use energy saving, recovery energy saving". Relying on the largest amorphous strip production base in the world, the company continues to increase the market development efforts in the fields of power grid, rail transit and new energy power generation in the domestic market, and the permeability of amorphous products increases gradually. In the field of overseas markets, on the basis of stabilizing the original market share and competitive advantage of Southeast Asia, the company has intensified the development of emerging markets for export, and gradually deepened customer cooperation in countries and regions such as the Americas. Overseas sales revenue of amorphous products has accounted for nearly 50%, and the global sales system has been gradually improved.
The threshold of nanocrystalline ultra-thin ribbon technology is high. The nanocrystalline ultra-thin ribbon produced by the company has high technical barriers and barriers, and since 2019, it has focused on market expansion in emerging industries, gradually replacing the market space of traditional magnetic materials such as ferrites, and has broad market application prospects in the future. At present, the company focuses on promoting the use of nanocrystalline materials for new energy vehicles and carries out cooperation and exchanges with industry leading companies, which has enhanced the company's market popularity and attracted the attention of many world-renowned automobile companies. The company has successfully obtained the supplier qualifications of world-famous companies and world-famous automobile companies, which has laid a strong foundation for further expanding the global partner network and strengthening technological exchanges.
Magnetic powder business sales, gross profit margin increased steadily. The company's magnetic powder business mainly includes atomized powder and broken powder products, as well as magnetic powder cores produced by magnetic powder processing. At present, through the continuous improvement of the production process and quality control system, the gross profit margin and sales volume have increased steadily, and the profitability of the sector has been significantly improved. At the same time, the soft magnetic powder core in the automotive field of the company has achieved stable mass production, and has been successfully promoted to the world-famous companies, laying the foundation for the continuous optimization of profitability.
Investment advice and rating: from 2023 to 2025, the company's operating income is estimated to be 1.824 billion yuan, and the net profit of return to the mother is 3.5 million yuan, respectively, and the corresponding EPS is 3.5pm 4.18 yuan, respectively. In view of the company's position in the field of amorphous alloy products, the broad application prospect of nanocrystalline products and the steady increase in magnetic powder sales and gross profit margin, the company was given a "buy" rating.
Risk hint: the risk that the replacement cost of amorphous transformer is too high, resulting in lower-than-expected demand for amorphous alloy products; the risk that the market share of the company's nanocrystalline products increases less than expected; and the risk that performance forecasts and valuation judgments are not as expected.