Summary of the report:
Divest the traditional business and focus on the main business of military products. The company stopped carrying out sugar business in May 2022, focusing on the R & D, production and sales of military products such as special power supplies and high-performance special alloy products. In recent years, the company's operating income overall showed a steady growth trend. In 2022, the company achieved operating income of 445 million yuan, down 17.46% from the same period last year. This is mainly due to the impact of the change in the caliber of the merger after the divestiture of the sugar business, and the business income of power supply and special alloys continued to grow. The net profit of returning to the mother was 119 million yuan, an increase of 274.81% over the same period last year. In terms of revenue composition, special power supply and related products are the company's largest business, accounting for 61.95% of the business income in 2022, an increase of 44.19% over the same period last year; the business of high-performance special alloy products accounted for 30.03% of the business income in 2022, and the income continued to grow steadily.
The revenue of power supply business is growing steadily, and the market scale is expected to continue to expand. The company's power business is carried out by wholly-owned subsidiaries sublimation Power supply and Sichuan Ganhua. Sublimation Power supply specializes in the development, design, production and sales of high-efficiency, high-reliability and high-power-density power products with a complete product spectrum, mainly serving airborne, shipborne, missile-borne and other weapon platforms. the performance indexes of some products have reached the technical level of international first-class enterprises. Sichuan Ganhua is mainly engaged in the R & D and sales of power equipment, electronic components, electronic accessories and other products. According to the data of China Power supply Society, the market size of China's power industry will reach 370 billion yuan in 2022, with a compound annual growth rate of 10.29%, of which special power supplies account for about 4% of the total power market scale. it has a variety of applications in radar navigation, high-energy physics, plasma physics and nuclear technology research. With the continuous development of the power industry as a whole, the market scale of special power supply will continue to grow, and the company is expected to fully benefit.
Alloy materials business and technical advantages, active layout of amorphous alloy new product research and development. The company's high-performance special alloy materials business is undertaken by holding subsidiaries Shenyang Haneng and Shenyang amorphous, among which Shenyang Haneng is mainly responsible for the research, development and manufacture of various specifications of tungsten alloy prefabricated fragments. for sea, land, air, rockets, strategic support and other multi-force equipment of artillery, rocket and missile products, product performance has been recognized by many customers In May 2022, the company acquired a 56.67% stake in Shenyang amorphous alloy materials, which are a kind of advanced active materials with impact-induced chemical reactions, with the characteristics of high strength and high hardness. it plays a subversive role in equipment design and strike capability in the field of national defense. The company carries out industry-university-research cooperation with well-known scientific research institutes to actively promote technology industrialization, and the amorphous alloy business is expected to become a new profit growth point in the future.
Investment suggestion: we estimate that the company's revenue from 2023 to 2025 will be 514,625,000,000 yuan respectively, and the net profit from its mother will be 1.33 million yuan 176,000,000 yuan respectively. The corresponding EPS will be 0.3000,000,000 yuan, and the corresponding PE33.55/25.35/20.16X will be given a "buy" rating for the first time.
Risk hint: new product research and development is not as expected, profit forecast and valuation are lower than expected