Event

On October 30, the company announced that the revenue from 1 to 3023 was 69.569 billion yuan, + 20.92% compared with the same period last year; the net profit from home was 970 million yuan, + 3.92% from the same period last year; the net profit from non-return was 1.122 billion yuan, which was + 58.32% from the same period last year; the revenue was 25.696 billion yuan from + 58.32% to + 5.74%; the net profit from home was 253 million yuan, with a quarter-on-quarter ratio of-34.10%; and the net profit from non-return to mother was 264 million yuan, with a month-on-month review.

Rising costs compress Q3 profit margins. 3023 the company's operating income is 25.656 billion yuan, month-on-month ratio + 5.77%, total revenue 25.696 billion yuan, month-on-month ratio + 5.74%, operating cost 24.873 billion yuan, month-on-month ratio + 6.47%, gross profit 823 million yuan, month-on-month ratio-12.36%. The increase in operating cost leads to a decrease in gross profit compared with the previous month. Q3 company's comprehensive gross profit margin was 3.05%, 0.64 percentage points lower than the previous month.

During the period, rising costs, credit impairment losses and falling investment income are a drag on Q3 performance. 03 the company's sales expenses are 28 million yuan, month-on-month + 67.72%, management expenses 250 million yuan, month-on-month + 21.42%, financial expenses 178 million yuan, month-on-month increase of 180 million yuan, credit impairment loss 7 million yuan, month-on-month reduction of profit 30 million yuan, investment income-270 million yuan, month-on-month reduction of interest 230 million yuan, multiple factors suppress the performance of Q3 As a result, the net profit returned to the mother was-34.10% to 253 million yuan, which exceeded the decline in gross profit, and the net interest rate decreased by 0.62 percentage points to 1.02%.

The R & D capability is outstanding, and the achievements of innovation are expected to be transformed into profit growth. The company gives full play to the equipment and process research and development capabilities, and increases the research and application of production technology. the independent research and development of the fifth generation continuous casting and rolling precision copper tube production line can reduce the comprehensive cost per ton by 700 yuan. it is planned that the product sales target for 23-25 years is 105 gambit 1.35 million tons respectively, and the compound sales growth rate for 22-25 years will reach 27%. The company's products are expected to rise in volume and profit.

The production and marketing of steel foil continues to improve, and the business layout is gradually improved. The company's annual output of 150000 tons of high-performance lithium steel foil was fully put into production at the end of May, production and sales increased rapidly month by month, and is promoting the construction of the second phase of the project. The company plans to build 100000 tons of high-performance electrolytic steel foil in Indonesia, and the project EIA has been completed in June. After it is completed and put into production, it can avoid the risk of international trade barriers on the basis of enhancing the company's business diversification. At present, the company already has a mass production capacity of 4.5-9 μ m steel foil, quickly cutting into the leading enterprises in the power battery and energy storage industry.

Profit Forecast & Investment suggestion

It is estimated that the revenue of the company from 23 to 25 years is 839x1012 / 126.2 billion yuan respectively, the net profit of return to the mother is 16.54max, 22.76 / 3.384 billion, EPS is 0.83, 1.14, 1.70 respectively, and the corresponding PE is 13.23, 9.62 and 6.47 times, respectively. Maintain a "buy" rating.

Risk hint

The progress of the project is not as expected; the copper price fluctuates; the demand is not as expected; the RMB exchange rate fluctuates.