Core viewpoints
1. In the first half of 2023, the company realized a net profit of 53 million yuan, with an increase of 1.03%. The net profit of 2023Q2 in a single quarter was 31 million yuan, an increase of 48.70% and a ring increase of 43.20%.
2. The fund-raising project has progressed steadily, with a cumulative investment progress of 96.37%. The main production equipment has been basically put into production, and some of the equipment has been put into production and commissioning.
3. The medium and high voltage contact materials are the first in the world, and the product market share is in the lead.
4. The company extends the tungsten-copper alloy core preparation technology to the optical module chip base material, the base products can effectively meet the new scene needs of the optical module, the downstream demand of the optical module drives the rapid growth of the optical module chip base material demand, 2023H1 achieves a year-on-year increase of 379.58% in sales revenue, and the annual production capacity of 2 million pieces is progressing smoothly.
Event
The company issues its 2023 half-yearly report
In the first half of 2023, the company achieved an operating income of 560 million yuan, an increase of 15.46% over the same period last year; a net profit of 53 million yuan, an increase of 1.03%; and a net profit of 40 million yuan, an increase of 54.92%, an increase of 54.92% over the same period last year. The net profit of 2023Q2 reached 31 million yuan, an increase of 48.70% year-on-year and 43.20% month-on-month.
Brief comment
The fund-raising project is progressing steadily, and the main production equipment is basically put into production.
As of 2023H1, the company's IPO investment project "14300 tons of chromium-zirconium copper and 5700 tons of copper-ferroalloy materials" project has been steadily advanced, with a cumulative investment progress of 96.37%. The main production equipment has been basically put into production, and some of the equipment has been put into production and commissioning.
It is imperative to replace high strength and high conductivity copper alloy materials at home.
High-strength and high-conductivity copper alloy materials are mainly used in high-end connector industries such as new energy vehicles, 5G communications, aerospace and so on. At present, domestic high-strength and high-conductivity copper alloy materials mainly rely on imports, and the company is committed to meeting the domestic downstream customers' demand for high-end connector materials and alleviating their dependence on imports. At present, the company has become one of the major suppliers in this subdivision field. Benefiting from the further improvement in the domestic substitution rate of high-end connector materials in new energy vehicles, 5G communications and other fields, the company's sales revenue of high-conductivity and high-strength copper alloy materials also increased by 13.34%. In addition to materials, the company is also actively building customized R & D and manufacturing capacity of high-conductivity and high-strength copper alloy products. The international market revenue of high-conductivity and high-strength copper alloy products (mainly used in the manufacture of high-speed / heavy-haul rail transit high-power traction motors) has increased by 23.36% compared with the same period last year.
The medium and high voltage contact materials are the first in the world, and the product market share is in the lead.
The company's medium and high voltage contact materials and products are divided into two categories: copper-chromium contacts and copper-tungsten contacts, which are mainly used in all kinds of medium and high voltage switches in the power industry.
After three generations of updating and upgrading, the company leads the world in the innovation ability of medium and high voltage contact materials, the invention patent accounts for the first in the world, and the product market share is in the lead, and it has become the first in the field of new materials in the world. The product of the company has successfully solved the problem that the contact materials for the construction of the State Grid rely on imports, and have been sold back to the world, with a domestic market share of more than 60%. The company successfully won the national champion product recognition.
To meet the needs of the new scene of the optical module, the tungsten-copper optical module chip base in the future is an optoelectronic device for optoelectronic and electro-optic conversion. with the rapid development of artificial intelligence, the market demand for data transmission speed and data storage capacity is increasing. In order to ensure the stable transmission processing of optical modules over big data, the basic materials of optical module chip base need to have low expansion coefficient and high thermal conductivity. The company uses 3D printing skeleton, vacuum infiltration directional solidification, micro-precision machining, self-built special gold plating line and other processes, the tungsten-copper alloy core preparation technology is extended to the optical module chip base material, the base products can effectively meet the new scene requirements of the optical module. On this basis, the company is developing a low-cost mass production process of diamond copper to reserve capacity for mass applications of more than 1.6T optical modules to support the rapid development of higher performance GPU in the future. The demand for optical module downstream led to the rapid growth of optical module chip base material demand. 2023H1 achieved a year-on-year increase of 379.58% in sales revenue, and the company's annual production capacity of 2 million pieces was progressing smoothly during the reporting period.
Other business
(1) High-performance metal chromium powder: 2023H1's high-performance metal chromium powder business increased by 53.65% compared with the same period last year. The market growth of high-end superalloys, medium and high voltage contact materials, high-end targets and surface spraying has driven the rapid growth of the demand for high-performance metal chromium powder.
(2) Medical imaging components: the sales revenue of CT and DR tube components of 2023H1 increased by 36.74% compared with the same period last year. During the reporting period, the company completed an annual production capacity of 6000-8000 sets of CT and DR ball tube components, and the independent controllability of key components in the medical equipment industry chain was further consolidated. With the significant progress made in the localization of CT tube, some customer products have been stereotyped into the batch production stage. According to the development of CT and DR tube industry in the global market and based on the production demonstration application platform of the Ministry of Industry and Information Technology, the company has completed the planning and demonstration of R & D and manufacturing base construction of 30,000 sets of CT and DR tube materials and components, and steadily advanced the preparatory work for R & D and manufacturing base construction.
(3) the inner wall products of the liquid rocket engine thrust chamber: the inner wall of the liquid rocket engine thrust chamber is an important part of the rocket engine. The high temperature and high pressure gas heat energy produced by propellant combustion is converted into kinetic energy in the thrust chamber. The inner wall material of the thrust chamber is required to have good high temperature resistance and high thermal conductivity, and the heat of fuel combustion in the rocket launch process is derived to ensure the normal operation of the engine. With the rapid development of global commercial aviation, the market demand of liquid rocket engine is increasing rapidly.
The inner wall products of the liquid rocket engine thrust chamber of the company have entered the stage of mass production, on the one hand, they serve the major national space projects, on the other hand, they continue to serve the private space enterprises with rapid accumulation of power. During the reporting period, with the success of the first flight of Tianbing science and technology liquid carrier rocket and the active preparation of Blue Arrow Aerospace for re-flight, private aerospace achieved a qualitative leap. During the reporting period, the company firmly promoted the production capacity construction of 1000 sets of rocket engine thrust chamber inner wall materials and components, and 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 from materials to finished parts.
Investment suggestion: the company's net profit from 2023 to 2025 is expected to be 118 million yuan, 175 million yuan and 252 million yuan respectively, and the PE corresponding to the previous share price is 56.58,38.26,26.56 times respectively. Considering the company's position and growth in the copper alloy material industry, the company is given a "buy" rating.