Event

According to the semi-annual report released by the company, 2023H1 achieved an operating income of 21.571 billion yuan, an increase of 4.86% over the same period last year; the net profit of returning to the mother was 213 million yuan, down 24.02% from the same period last year, deducting 11 million yuan from the same period of last year, down 94.08% from the same period last year.

Comment

The production and marketing of copper-based materials business has increased steadily, with obvious advantages in cost and scale. 2023Q2 realized operating income of 11.991 billion yuan, an increase of 7.77 percent over the same period last year, an increase of 25.18 percent over the same period last year, and a net profit of 119 million yuan, down 28.87 percent from the same period last year, and an increase of 25.19 percent over the previous year.

2023H1's copper-based materials business achieved sales of 443200 tons, an increase of 7.65 percent over the same period last year, and operating income of 21.013 billion yuan, an increase of 4.36 percent over the same period last year. Among them, the sales volume of copper plate and strip products exceeded 157500 tons, an increase of 4.13% over the same period last year. With the commissioning of fund-raising projects, the production and marketing scale of copper conductors increased rapidly, achieving sales of 190700 tons, an increase of 17.27% over the same period last year. With the fund-raising project "annual output of 120000 tons of high-end copper conductor material project" fully put into production, and the "annual output of 300000 tons of green intelligent manufacturing of high-precision and high conductivity copper-based materials project" completed and put into production, the company's market share is expected to further increase. Scale, cost and market advantages are obvious.

Guarantee the supply of military products, expand civilian products, Tianjiao high-tech continues to extend downstream. 2023H1 Skybird Hi-Tech realized operating income of 318 million yuan, an increase of 6.53% over the same period last year, and a net profit of 61.2192 million yuan, slightly lower than the same period last year. The first phase of Wuhu Skybird's "High performance carbon Fiber Composites R & D and production Project" has been put into production, with an operating income of 10.2301 million yuan in the first half of the year, production capacity and market are in running-in, and the project benefits need to be further enhanced. Carbon fiber preform, one of the leading high-tech products of Skybird, is mainly used for the preparation of carbon / carbon and carbon / ceramic composites, which has been supplied in large quantities in domestic regional civil aviation aircraft ARJ21 and exclusively in domestic large aircraft C919, which is of great strategic significance to the development of aerospace and national defense industry.

3D printing batch delivery, tantalum carbide coating completed and put into production, top business to a new level.

2023H1 Dingli Technology achieved an operating income of 2.4 billion yuan, an increase of 44.99% over the same period last year, and a net profit of 41.86 million yuan, an increase of 114.93% over the same period last year. With the mass delivery of 3D printing structures and the completion and production of tantalum carbide coating project, Dingli Technology has expanded its new materials business by relying on its own equipment and technological advantages, such as high-purity graphite / high-purity carbon materials and metal-based 3D printing materials. with the completion and production of tantalum carbide coating project, the business of new materials has grown rapidly and the performance has accelerated. On September 4, the company announced that Ding Li Technology plans to be listed on the new third board, which can promote the development of Ding Li business and maximize the overall benefit of Chujiang new materials.

Profit forecast

We estimate that the return net profit of the company from 2023 to 2025 is 1.88 billion yuan for 939pm, corresponding to 0.52 for EPS and 0.89 for PE. Cover for the first time, giving a "buy" rating.

Risk Tips:

Raw material prices fluctuated sharply, industry policies changed, and downstream orders were lower than expected.