The company has three soft magnetic product lines: amorphous alloy, nanocrystalline alloy, powder and magnetic core products, which have the ability to expand the whole industry chain covering the wide band from 0.05kHz to 100MHz. Among them, the market share of the company's amorphous alloy products is the first in the world, with a production capacity of 90,000 tons per year, benefiting from the improvement of the permeability of energy-saving and efficient distribution transformers and the dual market layout at home and abroad, the performance of nanocrystalline alloy products is excellent and leading in China, which is the inevitable choice for high current, high frequency, miniaturization and high power in the future. product certification has made a breakthrough, focusing on promoting the use of new energy vehicles in the field. The gross profit margin of powder and core products has increased significantly, the sales volume has increased steadily, and the profitability has improved significantly. With the steady release of production capacity, the company's three major soft magnetic products are expected to grow rapidly in the future.
Event
The performance increased rapidly, and the net profit of homecoming in the first half increased by 82.31% compared with the same period last year.
Yunlu shares released a semi-annual report on the evening of August 30, 2023, saying that the company achieved a cumulative operating income of 848 million yuan in the first half of 2023, an increase of 32.71% over the same period last year, and a net profit of 164 million yuan belonging to the shareholders of the parent company, an increase of 82.31% over the same period last year. The net profit after deducting non-shareholders was 148 million yuan, up 99.63% from the same period last year; and basic earnings per share was 1.37 yuan, up 82.67% from the same period last year.
Brief comment
Both revenue and profit increased, making the best performance in a single quarter in the second quarter.
From a quarterly point of view, the company's second-quarter operating and revenue profits reached the best level in a single quarter, of which operating income was 463 million yuan, year-on-year / month-on-month + 33.11% quarter-on-month 20.47%, homed net profit 90.8559 million yuan, year-on-year / month-on-month + 75.33% quarter-on-quarter 23.69, both of which were the best in a single quarter since listing. Second-quarter gross margin 30.75%, year-on-year / month-on-month + 6.77pct/+1.69pct, second-quarter net profit 19.61%, year-on-year / month-on-month + 4.22pct/+0.51pct, all of which are the best in a single quarter since listing, thanks to the continuous release of the production capacity of amorphous alloy ribbons and their products and magnetic powder and core materials, as well as increasing market development efforts and market supply capacity.
Fine management can reduce cost and increase efficiency, and the cost rate can be reduced.
While the company is growing in revenue, fine management can reduce costs and increase efficiency, control production costs through procurement mode, strategic cooperation and lean management, and at the same time strengthen process optimization and improvement to achieve the reduction of expense rate. The sales expenses / management expenses / financial expenses / R & D expenses rates of the company in the first half of the year were 2.84%, 1.97%, 0.39%, 4.22%, respectively, compared with the same period last year. The cumulative total expense rate was 8.64%, with a cumulative decrease of 1.61pct.
The leading production capacity of amorphous alloy has been released steadily, benefiting from energy-saving and efficient transformer promotion + the dual strategic layout of domestic and foreign markets, the company has built the world's largest amorphous strip production base, and put into production two 10,000-ton amorphous alloy strip production lines in the third quarter of 2022. With 6 amorphous strip production capacity of 90,000 tons, it has become the largest amorphous strip supplier in the industry, and the company's output has been released steadily. Compared with traditional silicon steel materials, the application of amorphous alloy materials in the field of distribution transformers has the characteristics of low coercivity, high permeability and high resistivity, which makes the materials easier to be magnetized and demagnetized, and can significantly reduce electromagnetic conversion loss. the characteristics of energy saving and environmental protection are outstanding, and the no-load loss can be reduced by 60% and 80%. The amorphous three-dimensional coil core technology developed by the company solves the problems of high noise, poor anti-sudden short ability and fragility of amorphous alloy transformers, and continues to increase its market share in the field of primary and secondary energy-efficient distribution transformers.
In the domestic market, the company continues to increase the market development efforts in the fields of power grid, rail transit and new energy power generation, and the permeability of amorphous products is gradually increasing. In February 2023, nine departments, including the National Development and Reform Commission, jointly issued the guidance on overall Energy Saving, carbon reduction and accelerated Recycling of products and equipment in key areas, together with the implementation Guide for Power Transformer Renewal and Recycling (2023 Edition): by 2025, the proportion of high-efficiency and energy-saving power transformers with energy efficiency reaching energy-saving level (energy efficiency level 2) and above will be more than 10% higher than that in 2021. In that year, the proportion of new high-efficiency and energy-saving power transformers reached more than 80%.
In overseas markets, the company's products have been sold to 15 countries and regions, including Southeast Asia, South Asia and North America, covering 70 power grid companies around the world, except on the basis of stabilizing the original market share and competitive advantage of the Southeast Asian market. The development of emerging markets for export has been intensified, and customer cooperation has been gradually deepened in the Americas and other countries and regions. The proportion of overseas sales revenue of amorphous products has reached nearly 50%, and the global sales system has been gradually improved. In January 2023, the US Department of Energy (DOE) put forward the new energy efficiency standards for three types of distribution transformers, and proposed that the transformers produced by the new standards use amorphous alloys to improve the flexibility of the US power grid, reduce utility costs, and greatly reduce domestic carbon dioxide emissions. If passed within the time frame proposed by the U.S. Department of Energy, the new regulations will take effect in 2027, after which all new distribution transformers will be switched to amorphous transformers.
Nanocrystalline products have made new progress in certification. Compared with ferrite soft magnetic materials, nanocrystalline materials are bound to be selected under high frequency, miniaturization and high efficiency. Compared with ferrite soft magnetic materials, nanocrystalline materials have the advantages of high saturation magnetism, low coercivity and high Curie temperature. it can reduce the volume and loss of magnetic devices, and can be used in the fields of new energy vehicles, consumer electronics, new energy power generation, household appliances and particle accelerators. It meets the requirements of future scenarios such as high current, high frequency, miniaturization, high efficiency and complex temperature. The nanocrystalline ultra-thin ribbon produced by the company has a thickness of 12 ~ 20 μ m, has a high technical threshold and barriers, and has a market space for market expansion in emerging industries and gradually replacing traditional magnetic materials such as ferrites. the future market application prospect is broad. The company focuses on promoting the use of nanocrystalline materials for new energy vehicles, actively participates in international exhibitions such as PCIM Power Electronics Exhibition in Nuremberg, and cooperates with industry leaders, 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, laying the foundation for further expanding the global partner network and strengthening technical exchanges.
The gross profit margin and sales volume of soft magnetic powder products have increased steadily.
The company's magnetic powder products include atomized powder and broken powder products, as well as the processing of magnetic powder core. Atomized powder is Fe-Si-Al, Fe-Si, Fe-Ni and other powder products produced by gas atomization and water atomization process. broken powder is the powder obtained by mechanical crushing of amorphous or nanocrystalline alloy ribbons at a certain temperature. at present, the company's products are mainly atomized powder, and the terminal applications are new energy vehicles, photovoltaic, electronics, home appliances and other fields. The company's atomized powder output has increased steadily, product stability and reliability have been gradually improved, gross profit margin and sales volume have increased, and the profitability of the plate has been significantly improved. At the same time, the company's soft magnetic powder core in the automotive field to achieve stable mass production, and successfully promoted to the world's well-known companies, the follow-up profitability is expected to continue to improve.
Profit forecast
The company is the leading enterprise in the global amorphous alloy industry, and has built the largest amorphous production base in the world. with the steady release of production capacity and the continuous development of double markets at home and abroad, the company's performance is expected to maintain rapid growth; at the same time, nanocrystalline products plate, soft magnetic powder and its products plate, benefit from the downstream boom, product certification is expected to bring greater performance flexibility for the company. Assuming that the production and sales volume of amorphous products in 2023-2025 is 8.5 million tons, the unit selling price is 1.6 million yuan, and the unit price is 162,200 thousand yuan per ton, and the sales volume of soft magnetic powder products is 1.0 million yuan, 1.5 million tons, and the average selling price is 2.0 million yuan per ton, respectively, it is estimated that the company's operating income in 2023-2025 is 18.90 million yuan, 21.94 million yuan, 2.574 billion yuan respectively. The net profit of the parent company is 3.31 trillion yuan, corresponding to the PE of 28-23-19, which covers for the first time and is given a "buy" rating.