occurrences

The company released its 2023 three-quarter report. In the first three quarters of 2023, the company achieved revenue of 3,207 billion yuan, an increase of 13.06% over the previous year, net profit of 69 million yuan, a decrease of 0.74% over the previous year, and deducted non-net profit of 60 million yuan, an increase of 40.36% over the previous year.

reviews

The performance improved significantly from month to month. 2023Q3 achieved revenue of 1,145 million yuan, a year-on-year increase of 14.41%, a month-on-month increase of 0.45%, net profit of 36.3 million yuan, an increase of 78.30% over the same period last year, a loss of 20.95 million yuan, net profit of 33.83 million yuan, an increase of 82.39% over the same period last year, and a loss of 36.94 million yuan in the same period last year.

Aluminum heat transfer materials have broad prospects, and the amount of heat management used in new energy sources is constantly increasing. The revenue of the company's related products in the field of new energy vehicles in the first half of 2023 was 633 million yuan, accounting for 29.53% of the company's 2023H1 revenue. In the field of thermal management, the demand for aluminum heat transfer materials for new energy vehicle thermal management systems has increased from a single 10KG for traditional vehicles to a single 20-25KG. In the long run, global demand for aluminum heat transfer materials for new energy vehicles and energy storage batteries has increased by more than 2 million tons, and the prospects for aluminum rolling materials for new energy vehicles are broad.

The Huaibei plant is progressing smoothly, with a long-term production capacity of 570,000 tons. Currently, the actual production capacity of the company's Wuxi plant is about 220,000 tons/year, and the Huaibei plant has a construction period of 3 years according to the company's investment plan. Currently, the construction of the plant and equipment infrastructure for the Huaibei plant project is progressing normally. After all of the Huaibei projects are completed, it is estimated that the additional production capacity will be 350,000 tons of recycled low-carbon aluminum heat transfer materials for new energy vehicles per year.

The leading aluminum rolling materials company in China, and its high-quality products have been highly recognized by domestic and foreign customers. Products such as aluminum heat transfer materials for cooling power batteries for new energy vehicles independently developed by the company have been directly or indirectly supplied in batches to many well-known enterprises such as BYD, Volkswagen, SAIC Motor Group, Geely, and Ningde Shidai. At the same time, the aluminum-steel composite materials produced by the company have broken the situation where core materials for thermal power plant air cooling units have been monopolized by foreign companies for a long time. The market share in the domestic power plant air cooling industry has reached more than 50%, making it one of the world's best manufacturers of this material.

Participated in Feilcom, a leading 3D printing company. The main business of Feiercon, the company's shareholding company, is metal 3D printing (additive manufacturing). Parts produced through 3D printing can be applied to aerospace fields such as aircraft, rockets, and aero engines. Feiercon is a qualified supplier of C919 metal 3D printing parts.

Profit forecasting

The company's net profit from 2023-2025 is expected to be 1.06/1.48/195 million yuan, an increase of 56.96%/40.01%/31.77% over the previous year. The corresponding EPS is 0.13/0.18/0.24 yuan, and the corresponding PE is 72.59/51.84/39.34 times.

Risk warning:

Risk of large fluctuations in aluminum prices; risk of capacity expansion falling short of expectations; risk of increased market competition; downstream demand falling short of expectations.