Core views
Single champion in powder metallurgy new materials, collaborative development of the three major businesses of P&S+SMC+MIM. (1) Huawei is leading the folding screen phone market, which is about to experience explosive growth. Hinges are the core components of folding screen phones, and MIM is its core process. As a leading manufacturer in the MIM industry, the company is taking the lead in benefiting from industry growth. (2) With a high increase in domestic automobile exports and the withdrawal of overseas competitors, the P&S business is expected to grow steadily. (3) Seize opportunities for inductor development, and SMC's business capacity is expanding rapidly. (4) Taking a stake in Xiaoxiang Electric, humanoid robots and new energy vehicles are expected to drive the rapid development of axial motors.
summary
The single champion of powder metallurgy new materials, P&S+SMC+MIM is a leading enterprise in the domestic powder metallurgy new materials industry. It is mainly engaged in the three major businesses of powder compression molding (P&S), soft magnetic composites (SMC), and metal injection molding (MIM). The products are mainly used in growing fields such as folding screen phones, new energy, and automobiles. Multiple bases complement each other, and the three major businesses achieve multi-level collaborative development.
Folding screens have ushered in a stage of 1-N explosive growth. As a result, Spark is investing in a subsidiary. Huawei is leading the folding screen phone market to explode in growth. Hinges are the core components of folding screen phones, and MIM is its core process. As leading manufacturers in the MIM industry, Huawei/Apple are all important customers of the company, and are expected to take the lead in benefiting from industry growth. MIM capacity utilization is increasing quarterly, and the MIM business is expected to achieve a sharp rise in volume and price.
Domestic automobile exports have surged and overseas competitors have withdrawn, and the P&S business is expected to grow steadily in a wide range of downstream applications of powder metallurgy. The company has been deeply involved in the P&S business for many years and has consolidated its leading position. The products are mainly supplied to high-end customers in the domestic and foreign automobile industry. Powder metallurgy materials have high performance and low cost advantages, and are increasingly widely used in automobiles. In recent years, along with the gradual reduction of investment and exit from foreign powder metallurgy manufacturers, foreign customer supply chain transfers, compounded the rapid growth of the company's P&S business.
Seize the opportunities for inductor development, and SMC's business capacity is expanding rapidly
Metal soft magnetic powder cores have many advantages. The inductance products made are widely used in photovoltaics, new energy vehicles, energy storage and other fields. The company is seizing inductor development opportunities, and the new production capacity of 60,000 tons is being built at an accelerated pace.
Taking a stake in Xiaoxiang Electric, humanoid robots+new energy vehicles are expected to drive the rapid development of axial motors. Axial magnetic flux motors are lightweight, small in size, have higher power/torque density, and have great application potential in electric vehicles, humanoid robots, etc. The company shares 12% of Xiaoxiang Electric's shares. According to the official website of Xiaoxiang Electric, it has core technologies such as self-developed concentrated magnetic axial magnetic flux motors. It has now completed batch product production and verification, and is used in many domestic robot companies. Xiaoxiang Electric is expected to form technical collaboration with the company's main business, which will not only strengthen the company's technical research on motors and non-automotive powder metallurgy applications, but also enable the company's P&S, SMC and other businesses to solve motor production process problems.
Since listing, the dividend rate has been nearly 60%, and shareholders' rights and interests have been continuously protected
Since its listing in 2004, the company has continued to protect shareholders' rights and interests, and has paid cash dividends every year. Since listing, it has achieved a cumulative net profit of 2,146 billion yuan, and a cumulative cash dividend of 1,252 billion yuan, with a dividend rate of 58.34%. Moreover, dividend rates have remained high in recent years. We assume that the company's dividend rate is 60%. Based on the company's current market value, the company's dividend rate can reach 3.6%.