On January 29, the company announced plans to invest in the establishment of a joint venture to develop, manufacture and sell fusion reactor materials and components, and nuclear detection instruments. We believe that the company's current foreign investment will quickly launch the transformation of high-heat load component manufacturing technology and shielding material technology achievements in nuclear fusion devices, cooperate with the country's major strategies in the field of energy equipment, and lay the foundation for the company's long-term development. Maintain a “Highly Recommended” investment rating.
The company plans to invest in the establishment of a joint venture to develop, manufacture and sell fusion reactor materials and components, and nuclear detection instruments. On January 29, 2024, the company signed the “Sponsor Agreement on the Establishment of Anhui Juneng New Material Technology Co., Ltd.” with natural persons Yao Damao, Qi Qiang and Liu Songlin, and plans to jointly fund the establishment of a joint venture to engage in the development, production and sale of fusion reactor materials and components and nuclear detection instruments. The registered capital of the joint venture is RMB 50 million, of which Yingliu Shares plans to invest 30 million yuan in currency and in kind, at a ratio of 60%, and is the largest shareholder of the joint venture. Hefei Comprehensive Science Center Energy Research Institute Co., Ltd., Yao Damao, Qi Qiang, and Liu Songlin invested 600, 700, 3.5, and 3.5 million yuan respectively in investment of 6 patent applications, accounting for 12%, 14%, 7%, and 7% respectively.
The 6 invested invention patents are all fusion reactor-related technology. The six patents owned by Hefei Comprehensive Science Center Energy Research Institute Co., Ltd., Yao Damao, Qi Qiang, and Liu Songlin Technology are: ① a fixed device and method for manufacturing tungsten copper strings for nuclear fusion tungsten deflectors; ② a fixed device made of a nuclear fusion tungsten deflector plate ③ an internal vacuum chamber inspection robot and inspection method based on magnetic restraint and controllable nuclear fusion ④ a type of boron-containing stainless steel with high shielding performance and its preparation method ⑤ a tungsten-based shielding material with adjustable shielding performance ⑥ a polyvinyl shielding material design method.
Hefei Comprehensive Science Center Energy Research Institute Co., Ltd. is an enterprise belonging to the Hefei Comprehensive National Science Center Energy Research Institute. Magnetically constrained fusion is its main research direction, and all three natural persons are core researchers in related technologies. According to Wind Global Enterprise Library, Hefei Comprehensive Science Center Energy Research Institute Co., Ltd. is wholly-owned by the Hefei Comprehensive National Science Center Energy Research Institute (Anhui Energy Laboratory). Relying on the construction of the Institute of Plasma Physics of the Chinese Academy of Sciences, Anhui University of Science and Technology, and Hefei University of Technology, etc., the research institute will focus on major scientific and technological tasks and the construction of large-scale national science and technology infrastructure, focusing on the four research directions of clean coal utilization, magnetically constrained fusion, renewable energy, and smart power grids. The Institute's fusion research has maintained a leading international level. The fully superconducting tokamak device has repeatedly set world records. It has successively achieved 101.2 seconds of steady state long pulse high restraint plasma operation and a plasma center electron temperature of 100 million degrees Celsius. The Hefei Branch of the Chinese Academy of Sciences successfully completed the ITER (International Thermonuclear Fusion Experimental Reactor) PF6 coil manufacturing task, breaking the technical barriers of developed countries in this field. According to the official website of the University of Chinese Academy of Sciences, Yao Damao is a doctoral supervisor at the Hefei Institute of Physical Sciences of the Chinese Academy of Sciences. According to the official website of the Fusion Reactor Materials and Components Research Office of the Institute of Plasma Physics of the Chinese Academy of Sciences, Qi Qiang is an associate researcher in the laboratory. According to the Institute of Plasma Physics of the Chinese Academy of Sciences, Liu Songlin is a researcher at the Institute's Fusion Reactor Materials and Components Laboratory.
This foreign investment will lay the foundation for the company's long-term development in the field of controlled nuclear fusion. The company's foreign investment to establish Anhui Juneng New Material Technology Co., Ltd. aims to quickly launch the transformation of high-heat load component manufacturing technology and shielding material technology achievements in nuclear fusion devices, cooperate with the country's major strategies in the field of energy equipment, and lay the foundation for the company's long-term development.
Maintain a “Highly Recommended” investment rating. Yingliu Co., Ltd. is a supplier of core components in the fields of “two machines”, nuclear power, and high-end equipment. We believe that in the next three years, the company will benefit from the recovery of global civil aviation in the aviation development sector, from breakthroughs in overseas demand+ domestic heavy gas turbines in the gas turbine sector; in the nuclear power sector, from nuclear power approval and restart+increase in the number of nuclear power plants under construction, the performance is expected to grow rapidly. The company's revenue growth rate for 2023/2024/2025 is expected to be 13%/21%/15%, respectively, and the net profit growth rate to mother is -14%/50%/25%, respectively, corresponding PE is 21.3/14.1/11.3 times, maintaining the “Highly Recommended” investment rating.
Risk warning: The recovery of the aero engine market falls short of expectations, the localization of heavy gas turbines falls short of expectations, the approval and construction of nuclear power falls short of expectations, commercialization of controlled nuclear fusion falls short of expectations, and patent acquisition falls short of expectations.