On October 26, the company released three quarterly reports for 2023. In the first three quarters of 2023, revenue, homing and deducting non-homing were 1.76 billion, 236 million and 218 million respectively, and + 169.2%, + 90.8% and + 85.9%, respectively, compared with the same period last year.
Gross sales margin 35.38%, year-on-year-19.17pct; net sales margin 15.60%, year-on-year-4.54pct.
Revenue and profit increased month-on-month in the third quarter. 2023Q3 achieved revenue, return to mother, and deduction of non-return to mother 795 million, 105 million, 98 million respectively; year-on-year + 213.6%, + 102.9%, + 105.5%, month-on-month + 20.3%, + 22.1%, + 19.5%.
Sales gross margin 34.23%, year-on-year-19.26pct, month-on-month-2.12pct; net sales margin 15.20%, year-on-year-6.81pct; month-on-month-0.48pct.
The carbon-carbon thermal field already has a capacity of 5500 tons. The company has optimized the process of mass production of the largest size deposition equipment in the field of carbon-carbon composite products with a diameter of more than 8 meters, and further improved the rapid deposition process of super-large deposition equipment, and the deposition efficiency is significantly higher than that of the previous cycle. At present, 10 deposition furnaces with a diameter of more than 8 meters have been debugged and officially put into use. The production capacity of carbon thermal field products of the company has reached 5500 tons, which can meet the mass production of 36-inch or larger products. The company's carbon and carbon production line has achieved large-scale deposition equipment, continuous high-temperature equipment, intelligent key processes, process connection automation, and greatly improved the manufacturing efficiency of thermal field components.
The thermal field of lithium negative electrode has entered the sample stage. The company has carried out systematic research and development on thermal tooling for lithium electrode. At present, it has been successfully developed and tested in many manufacturers of head anode materials, and some customers have entered the pilot stage through the trial of sample parts.
The supply of high purity quartz sand is abundant. The company has signed a long-term procurement framework agreement with Sibiko, and the company will purchase a total of 7817 tons of quartz sand from Sibiko from 2024 to 2028. Jiangsu Xinlieyang, a subsidiary of the company, has completed the construction and production of No. 7 and No. 8 quartz crucible production lines, including the six production lines that have been built before, there are a total of 8 production lines in Jiangsu Xinlieyang. Sichuan Jiangyou Tianqi Lianyang, a subsidiary of the company, plans to build 20 quartz crucible production lines in 2023. At present, 10 production lines have been installed and entered the trial production link.
Carbon ceramic brake discs have been supplied in small quantities. The company has established carbon ceramic driving disc project cooperation with 21 automobile mainframe manufacturers and supply chain customers, obtained the fixed point of a key model carbon ceramic plate production project of a new energy vehicle company, and has begun to supply samples in small batches and multiple batches; the company has obtained the qualification of qualified supplier of seven automobile companies and the qualification of trial production supplier of one automobile company.
Investment advice: hot market prices have hit bottom, the industry has been a tragic reshuffle, the current pattern is stable. Quartz crucible has high prosperity, excellent profit and annual table for the first time. Throat lining and resin-based structures will be released this year. The carbon ceramic drive is expected to get on board in the second half of this year. At present, the fundamentals of the company are significantly improving. The estimated profit in 2023, 2024, 2025 is RMB 5.09, 7.32, 10.23 million, respectively, corresponding to 20.5, 14.3, and 10.2X PE, which is highly recommended.
Risk hint: downstream demand is lower than expected and capacity release is not as expected.