Incidents:

2023 report: In 2023, the company achieved operating income of 2,681 billion yuan, a year-on-year decrease of 3.58%; net profit attributable to shareholders of listed companies was 55,193 million yuan, a year-on-year decrease of 0.59%; deducted non-net profit attributable to shareholders of listed companies was 239.631 million yuan, a year-on-year decrease of 38.85%.

Comment:

The fund-raising project is progressing steadily. The Chongqing base completed project construction, equipment commissioning and full commissioning, and realized the greening and automation transformation and upgrading of the production line. The Thai base construction project has passed the inspection of Thailand's IEAT Industrial Administration. The plant is ready for use, the mechanical and electrical components have been fully fueled, and the installation and commissioning of the electrolytic copper production line is nearing completion. It is scheduled to be put into operation in June 2024. According to the company's development situation, the science and technology innovation center construction project is progressing steadily in favor of 3D printing and future industries.

The additive business is growing steadily. Additive manufacturing metal powder materials companies seize the rapid development opportunities of the industry, continuously develop new customers, and open up new application fields. In 2023, Youyan Additive achieved operating revenue of 82.81 million yuan and achieved net profit of 14.53 million yuan, of which 3D printing powder revenue was 304.486 million yuan, an increase of 42.98% year on year; 3D printing powder production was 102.3 tons, up 37.46% year on year.

The electronic paste business is growing rapidly. In 2023, the company reorganized the business of the former Beijing Youyan Powder New Materials Research Institute Co., Ltd. with the business of Kangpu Xiwei, Youyan Additives, and Youyan Powder. The business restructuring revolves around future operation and development plans for the micro-nano electronic paste sector and the powder metallurgy sector. The aim is to re-establish a better development platform and enhance business collaboration. With the independent legal personality of the Powder Research Institute, the Powder Research Institute changed its name to Youyanna Micronew Materials (Beijing) Co., Ltd. The electronic paste business achieved revenue of 60.1379 million yuan in 2023, an increase of 133.68% over the previous year; it achieved an output of 340.56 tons, an increase of 135.11% over the previous year.

Investment recommendations and ratings: The company's revenue for 2024-2026 is estimated to be RMB 34.85/41.82/RMB 5.019 billion, respectively, and net profit to mother of RMB 0.82/1.07/139 million, respectively. Considering that the company's Chongqing production base has entered a climbing period, the Thai production base was put into operation in 2024 and the rapid growth of 3D printed powder materials and electronic pastes, maintaining the company's “buy” rating.

Risk warning: raw material prices fluctuate greatly; risk of insufficient downstream demand for powder materials.