This report is read as follows:

The company's results in the first three quarters of 2023 are in line with expectations, and the company's downstream demand remains brisk. The company's Dongtai base is expected to be gradually completed and will enter the production release period in 24 years. We expect the company's performance to follow the release of investment points:

Maintain the "overweight" rating. In the first three quarters of 2023, the company achieved revenue of 797 million, up 33.54% from the same period last year, and achieved a net profit of 70 million, up 23.57% from the same period last year. The company maintains the forecast that the EPS of the company from 2023 to 2025 is 0.43, 0.68, and 0.83 yuan, respectively, and the corresponding net profit is 1.58 trillion, respectively. Maintain the company's target price of 17.2 yuan and maintain the "overweight" rating.

Profitability will rise steadily, and the proportion of high-end products will rise. Assuming that the sales volume of the company in 2023 is the same as that in 2022 and the sales volume in the first three quarters is 75% of the whole year, it is estimated that the average sales price of the company's products in the first three quarters is 204,400 yuan / ton, and the gross profit per ton is 382,000 yuan / ton, up 3.58 yuan / ton and 0.53 million yuan / ton respectively over 2022. The company's profitability is steadily rising. The construction of Jiangsu New Zhongzhou continues to advance, and Jiangsu New Zhongzhou aims at high-end products. It is expected that the company's product structure will be improved and profitability will continue to rise after it is put into production.

Jiangsu Xinzhongzhou put into production, the company's output will enter the release period. At present, the production capacity of superalloy is more than 4000 tons. Through outsourced production, the company's 22-year sales volume has reached 5302 tons. According to the answer of the company's Shenzhen Stock Exchange Interactive Yi, Jiangsu New Zhongzhou Phase II project is expected to start production by the end of 2023, and the project is expected to enter the production release period in 2024. In addition, Jiangsu New Zhongzhou Phase III project is also gradually implemented, the company's output will usher in an increase.

The space of civil superalloy industry is broad. Civil superalloys are mainly used in nuclear power, new energy, petrochemical and other fields. In the field of petrochemical industry, front-end drilling and mining to back-end coal chemical industry and fine chemical industry are used, and the worse the environment is, the wider the scope of application is; in the field of energy, the demand for superalloys such as steam turbines is gradually increasing, and the demand for civil superalloys is growing. the industry has a broad space.

Risk hint: the production progress of new capacity is not as expected, and the risk of market development.