According to the company's report for the third quarter of 2023, 2023Q1-Q3 achieved operating income of 1,245 million yuan, an increase of 2.00% over the previous year; net profit of 53 million yuan, an increase of 85.17% over the previous year; and net profit after deducting 47 million yuan, an increase of 104.23% over the previous year. Among them, 2023Q3 achieved revenue of 490 million yuan, an increase of 12.31% over the previous year, net profit of 121 million yuan, an increase of 144.21% over the previous year, and net profit of 018 million yuan after deducting non-net profit, an increase of 169.49% over the previous year. The company's 2023Q3 revenue continued to accelerate, growth was steady, and the business growth rate was relatively rapid in 2023.
The company is mainly engaged in R&D, production and sales of new polymer materials and their composites, and adheres to the development path of independent research and development and technological innovation. The company's main products include three categories of modified plastics, plastic wood profiles, and carbon fiber composite materials. The products are widely used in six major market fields, including automobiles, high-speed rail and rail transit, 5G communications, electronic and electrical, healthcare, aerospace, and environmentally friendly construction projects. The company has now become the main supplier of modified nylon materials for high-speed rail and rail transit in China, and is an important supplier of modified materials for nylon, polypropylene and plastic alloys for automobiles in China. Since its establishment for more than 20 years, the company has adhered to the development path of independent research and development and technological innovation, focusing on development topics such as “key components of high-end equipment”, “new energy, lightweight”, and “solving the 'stuck neck' technology of new materials” to provide personalized new polymer materials and composites for the country's pillar industries, key projects and various industries.
Continue to lay out innovation and development in the field of new energy, and adhere to the path of independent innovation and replacement of imports. Since this year, the company has continued to accelerate research and development of new material products such as high melt strength extrusion blow molding grade nylon materials, low odor enhanced nylon, and supercritical molded foamed polypropylene. At the same time, it has actively explored various directions such as hydrogen storage tank liner materials, battery core separator materials, bottom shield materials, and photovoltaic scaffolding materials, forming a “technical reserve+technology industrialization” two-wheel drive development pattern. 2023Q1-Q3, the company already uses flame-retardant PC/ABS product terminals for liquid cooling covers in energy storage systems, and realizes batch supply. At the same time, it also supplies a small amount in the electric power sector and photovoltaic sector. In the future, the company will continue to focus on innovation and development in the field of new energy and strive to become an outstanding world-class new materials company.
The convertible bond fundraising project brings growth and enhances the company's overall competitiveness. The company's fund-raising projects include the “production and construction project for special engineering plastics and modified materials with an annual output of 50,000 tons” and the “carbon fiber composite production line construction project with an annual output of 30 tons”. Project 1's products, special engineering plastics and modified materials, are basically consistent with the company's existing products in all aspects such as raw material supply, production processes, environmental treatment, and quality control. It is proposed to improve product quality through more advanced equipment and processes, and establish a certain capacity reserve for seasonal production peaks. Its subsequent implementation will not change the existing production and operation model. Project 2, the carbon fiber composite material component, combines the company's national industrial policy and industry development characteristics. It is a further expansion of the existing business based on the company's existing technical reserves and relying on the new materials industry chain. Carbon fiber products can enrich the company's product structure, and are expected to become a new growth pole for the company and enhance the company's overall competitiveness.
Investment advice: Due to uncertainty about new construction projects and large fluctuations in price trends of raw materials products, the company is not rated in this report.
Risk warning: the risk of additional production capacity in the market; the risk that demand in the downstream market falls short of expectations; the risk that the commissioning progress of projects under construction falls short of expectations; and the risk of a sharp increase in raw material costs.