Maintain the target price of 190.13 yuan and maintain “increase in holdings”. The company is a leader in stealth materials. Downstream demand is highly determined, the penetration rate is constantly increasing, and the performance is expected to maintain a high growth rate. As the scale of batch production increases and prices may fluctuate in stages, we lowered EPS to 3.81/5.04/6.17 yuan in 2024-26 (4.47/5.96 before 24-25). Considering the company's leading position and competitive advantage in the industry, we gave 49.9 times PE in 24 years, maintained a target price of 190.13 yuan, and maintained an “increase” rating.
The 23-year results were in line with expectations, with rapid growth in 24Q1. 1) In 23 years, the company achieved revenue of 917 million yuan (+36.45%), net profit of 335 million yuan (+0.48%), net profit of 385 million yuan (+23.23%), net interest rate of 28.28% (-21.31pct), and subsidiary shares paid 188 million yuan, which had a certain impact on profits; 2) benefiting from small-batch product orders, 24Q1 continued to grow at a high rate of revenue of 248 million yuan (+32.61%) and net profit of 114 million yuan (+29.40%).
Deeply involved in the research and development of new models, and continuing to expand fields such as aeronautical parts manufacturing and acoustic materials, the scale of performance and profitability are expected to increase steadily. 1) Deeply involved in the research and development of new models: over the years, give full play to the advantages of industry, education and research, actively lay out cutting-edge technology in the industry, and participate in multi-model follow-up work. Currently, dozens of models are in the pre-development or small-batch trial production stage. As of the end of 24Q1, orders for special functional materials were in hand about 800 million yuan; 2) Laying out aerospace components and deeply tied to the aviation development supply chain: the subsidiary Huaqin Hangfa expands from parts processing to manufacturing, and gradually becomes a core supplier in the aviation development industry chain; 3) Expanding applications in the civil field: entering the field of superacoustic materials, develop new high-end civilian use Materials, strive to open up new market opportunities.
Catalysts: Mass production models continue to stabilize volume, and mass production of next-generation products is accelerated.
Risk warning: New product development progress is lower than expected; fighter mass production progress is lower than expected.