The performance is close to the upper limit of the forecast and in line with expectations.

The company's 2023Q1-Q3 revenue was 1.168 billion yuan, an increase of 44.7% over the same period last year, and its net profit was 136 million yuan, an increase of 46.9% over the same period last year, close to the upper limit of the previous performance forecast range. Q3 revenue of 397 million yuan and net profit of 46 million yuan were all slightly higher than the previous month-on-month. The company is the domestic leader in domestic replacement of nuclear fuel transport containers, with abundant orders during the reporting period, subject to the pace of capacity release, we slightly lowered our previous profit forecast for 2023-2025, the estimated net profit for 2023-2025 is RMB 2.46 trillion (the previous value is RMB 172,358 million), and the current stock price corresponds to 18.813.8 pound PE 10.3 times, maintaining the "buy" rating.

There are plenty of orders on hand, and nuclear power orders are expected in the future.

As of June 2023, the company had orders for 2.1 billion yuan, of which new energy high-end equipment (photovoltaic, nuclear power, petrochemical energy cleaning) accounted for more than 30%, natural gas chemical industry accounted for more than 30%, petroleum refining and chemical industry accounted for more than 20%. The other accounts for about 7%, 8%, the company has abundant order structure, and is close to the revenue structure of the first half of the year. In terms of nuclear power, the company completed the high-temperature gas-cooled reactor CX project cooler project in August 2023, and the proportion of high-temperature gas-cooled reactor in nuclear power increased. The company is expected to usher in significant growth in new fuel containers in 2024, and is expected to make a breakthrough in spent fuel containers. In addition, more orders are expected in overseas markets, especially in Russian-speaking areas.

New production capacity will be released soon, and performance growth will be guaranteed.

In 2022, the company's fixed growth project was examined and approved by the Shenzhen Stock Exchange, raising 580 million yuan for intelligent manufacturing of high-end process equipment and other projects. through the construction of this project, the company will be able to effectively solve the problem of capacity bottleneck and meet the demand for order growth. to provide guarantee for rapid growth in performance. According to the company announcement, the company's fund-raising project is progressing smoothly according to the plan, and the main body of the first phase of plant expansion is expected to be successfully completed within October 2023. As the new capacity reaches production, it is expected to provide a strong guarantee for performance growth.

Risk hint: the progress of nuclear power unit start-up is not as expected; the domestic replacement of new fuel and spent fuel transport containers is not as expected; the company's order delivery and production capacity growth is not as expected.