Company profile: The company focuses on the development and sale of additive manufacturing equipment and materials, providing customers around the world with industrial-grade SLM and SLS additive manufacturing equipment. The industrial chain has expanded upward into the field of polymer materials, and the products are being accelerated in aerospace, automotive, medical, mold and other fields. As a supplement to traditional manufacturing processes, 3D printing's growth stems from the demand for complex structures, lightweighting, manufacturing efficiency and low costs for downstream products such as aerospace and automobiles, and the penetration rate is in the early stages of development.
Core investment logic: (1) Leading supplier of industrial additive manufacturing equipment and materials. The company is one of the few additive manufacturing enterprises in China that also has independent R&D and production capabilities for 3D printing equipment, materials and software, and its sales scale ranks among the highest in the industry. (2) Complete product lineage, double expansion of domestic and foreign markets, and self-development of software to jointly build competitive barriers. The company has built a complete technical system including equipment, software, materials, processes and applications around the SLM and SLS fields, and independently develops a full set of software source codes for additive manufacturing equipment data processing systems and control systems. The materials field breaks the high market share of foreign polymer materials, strengthens the industrialization process, and is driven by an international expansion strategy and direct distribution, leading the market and channel layout. (3) With accelerated technology selection and leading cost advantages, there is plenty of room for improvement in the penetration rate of the 3D printing industry. As a supplement to traditional subtractive manufacturing and equal material manufacturing, 3D printing has certain technical and cost advantages in fields with complex structures and high lightweight requirements. Along with product innovation and industrial upgrading in downstream high-end manufacturing such as aerospace, automobiles, etc., there is still plenty of room for improvement in the penetration rate of the 3D printing industry.
Profit forecast and investment advice: The company's EPS is expected to be 0.37/0.52/0.76 yuan/share in 23-25, respectively. Combined with comparable company valuations, considering that the company's market valuation has been high since its listing in April this year, the judgment is mainly based on factors such as the company's overseas layout advantages, both non-metallic and metallic additive manufacturing businesses, and patent breakthroughs in polymer materials. It is considered appropriate to give the company a 24-year 70 PE valuation, corresponding to a reasonable value of 36.31 yuan/share, giving a “gain” rating.
Risk warning: product quality, market development, batch production progress, patent risk, etc.