China's 3D printing industry has entered a stage of rapid development. It is expected to reach 100 billion in 2027. After more than 30 years of development, the additive manufacturing industry is moving from its inception to a period of growth, showing a trend of accelerated growth. The global 3D printing market continues to grow, continuing its double-digit growth rate in 34 of the past 25 years. In 2022, the global 3D printing market reached US$18 billion, an increase of 18.3% over the previous year.
The scale of China's additive manufacturing industry expanded from less than 1 billion yuan in 2012 to 32 billion yuan in 2022, with a compound annual growth rate of over 40%. According to preliminary estimates, China's 3D printing industry will reach about 40 billion yuan by the end of 2023, and is expected to break the 100 billion yuan mark in 2027.
The company is a leading domestic metal 3D printing company, fully benefiting from the development dividends of the industry. As a national high-tech enterprise focusing on metal 3D printing, Platinum can provide a full range of solutions for metal additive manufacturing. The company's revenue continued to grow rapidly in 2018-2022, with an average compound annual growth rate of 33.22%; although net profit to mother was greatly affected by equity incentive amortization expenses, the compounded annual growth rate of the company's net profit in 2018-2022 was still above 8.5%. According to the company's performance forecast, it is expected to achieve revenue of 1,232 billion yuan in 2023, an increase of about 34% over the previous year; it is estimated to achieve net profit of 148 million yuan, an increase of about 87% over the previous year. Since the company's listing in 2019, the stock price has increased by more than 560% based on post-reinstatement, with increases of 176% and 40% in 2020 and 2021, respectively.
Deeply involved in the two core technologies of SLM and LSF, the entire equipment/materials/product service industry chain companies focus on the SLM and LSF processes, while actively promoting WAAM process research and development to build a complete metal 3D printing industry chain. In terms of equipment, the BLT-S1500 developed by the company has a molding size of 1500 mm x 1500 mm x 1200 mm, which can simultaneously scan 26 lasers. In terms of raw materials, the construction of 10 high-quality metal powder production lines for additive manufacturing has been completed, and high-quality titanium alloy and high temperature alloy powders have been successfully developed. In terms of products and services, it can be molded with more than 80 kinds of materials, established cooperative relationships with more than 2,200 organizations, and participated in supporting the construction of many key models in the country.
Investment advice and profit forecasting
The company has high technical barriers and strong monopoly in the field of metal additive manufacturing. The company's leading position in the 3D printing field is prominent. Benefiting from the blowout expansion of downstream demand, the company's new projects drive the rapid formation of new products. The company will form two-wheel drive growth in processing services and equipment manufacturing, and the overall gross margin will increase accordingly. We estimate that the company's net profit for 2023-2025 will be 148 million yuan, 358 million yuan, and 621 million yuan, corresponding to PE of 95.85 times, 39.74 times, and 22.88 times, maintaining the “buy” rating.
Risk warning
The industrialization of metal 3D printing is being promoted slowly, and downstream demand falls short of expectations; competition is intensifying, technology upgrades are not being iterated in a timely manner; and there is a risk of bad debts in accounts receivable.