Incident: The company released its 2023 annual report and the first quarter report of 2024. In 2023, the company achieved revenue of 270 million yuan, +93.38% year over year, net profit to mother of -35 million yuan, -159.64% year on year; net profit after deducting non-return to mother of 19 million yuan, or -53.29% year over year. In the first quarter of 2024, we achieved revenue of 86 million yuan, +42.90% year on year, net profit to mother of 0.17 million yuan, -19.82% year on year; net profit after deducting non-return to mother was 0.16 million yuan, -14.14% year on year.
Aerospace is growing steadily, and the field of new energy vehicles is opening up new markets. By product, revenue from additive manufacturing of aerospace components and consumables in 2023 was 90 million yuan, +25.03%; airborne equipment maintenance revenue was 40 million yuan, +3.18% year on year; plate and belt forming precision equipment and parts manufacturing revenue was 72 million yuan, +828.02% year over year; and new energy vehicle parts manufacturing revenue was 64 million yuan, +319.73% year over year. In the field of new energy vehicles, in response to the higher requirements for strength and other performance of NEV battery frames and thermal management system components, the company solved the problems of polymetallic bonding such as copper and aluminum alloy more efficiently through additive manufacturing technology such as cold spraying, and achieved high wear resistance and thermal conductivity requirements, and achieved industrial expansion.
The company's $59.95 million deposit was affected by the transfer case, and the decline in profit narrowed in the first quarter. According to the company's 2023 annual report, the company's gross margin was 32.04%, -21.20pct year on year, and the net profit margin was -12.96%, or -55.25pct year on year. According to the company's 2024 quarterly report, the company's gross margin was 36.15%, -9.28pct year on year, net profit margin 20.08%, and -15.70pct year on year. Since the criminal case involving the transfer of the company's deposit of 59.95 million yuan is still under investigation, the company confirmed that the full amount of 59.95 million yuan was lost, which greatly affected the financial data for 2023.
Technology-driven, platform extension. As a leading domestic cold spray company, the company has advanced technology. The company's cold spray solid additive manufacturing technology is applied to the issue of extending the life span of fighter aircraft. At the same time, the company is actively expanding its product line and successfully applied spraying technology to the field of new energy vehicles and industrial mother engines through the acquisition of downstream companies.
Investment advice: The company's net profit for 24/25/26 is estimated to be 0.89/1.11/148 million YoY +353.8%/+24.5%/+33.6%. Give it a “buy” rating.
Risk warning: Competition in the industry intensifies; downstream expansion falls short of expectations.