Central enterprises hold shares and deepen reforms. The company is a subsidiary of the central enterprise China Nonferrous Mining Group. As a leader in tantalum-niobium research and manufacturing, the company continues to carry out R&D investment and technical research, has high brand awareness and market share, and has transformed old production lines through fund-raising projects to further increase the production capacity of pyrometallurgy and niobium superconducting cavity projects and enhance future growth momentum. Furthermore, the company benefits core key personnel through employee stock ownership plans, stimulates employees' enthusiasm for production, and releases reform dividends.
Deeply cultivate the tantalum-niobium industry and develop cutting-edge technology. The company's main products such as capacitor-grade and ultra-high purity tantalum powder, capacitor-grade tantalum wire, tantalum for superalloy addition, superconducting niobium, and niobium superconducting cavities have a high market share. Among them, ultra-high purity tantalum powder can be used to manufacture tantalum target blanks, which is expected to benefit from the recovery of the semiconductor cycle, accelerated certification of 12-inch tantalum target blanks, and further optimization of the product structure. Niobium radio frequency superconducting cavities produced by the subsidiary Dongfang Superconductivity can be used in particle accelerators, and performance has grown rapidly in the past two years.
The participating company Nishizaiyuan achieved technological breakthroughs and participated in the ITER artificial solar project. As the only beryllium research and processing base in China, the company's shareholding company, Xizaiyuan has benefited from demand in the military, aerospace and other fields, entered a period of rapid development, and contributed considerable investment returns to the company. In addition, the Western Saizai Institute supplied the first wall material to enhance the heat load for the ITER project and signed a new order contract for beryllium tile products with the ITER project.
Profit forecast and investment suggestions: We expect the company to achieve operating income of 11.44/15.71/18.30 billion yuan in 2023-2025, up 16.0%/37.3%/16.5% year on year; net profit to mother will be 1.92/2.55/ 365 million yuan, up 12.5%/32.8%/43.0% year on year, corresponding EPS of 0.38/0.50/0.72 yuan respectively, corresponding PE is 26.72/20.11/14.06 times, respectively. The first coverage gives the company a “buy” rating.
Risk warning: risk of policies exceeding expectations; risk of downstream demand falling short of expectations; risk of domestic and foreign project commissioning falling short of expected risk, etc.