Lower profit forecasts and maintain “buy” ratings
The company achieved revenue of 1,232 billion yuan (yoy +34.24%) and net profit of 142 million yuan (yoy +78.11%) in 2008. Considering that 3D printing is at a high speed penetration stage of 1 to N in various fields, the company may achieve revenue expansion through active price cuts and concessions, and we lowered the predicted gross margin of the company's 3D printing customized services. The company's net profit for 24-26 is 3.20/4.97/674 million yuan, respectively (the value before 2024-2025 was 447/702 million yuan). Comparable company Wind unanimously expected the average PE value to be 41 times. Considering that Platinum's main business revenue was all contributed by the additive manufacturing business and covered the entire material-equipment-product industry chain, the “additive properties” were superior to comparable companies, giving the company 55 times PE in 24 years, with a target price of 90.75 yuan (based on the new share capital, the previous value was 124.29 yuan) and “purchase”.
The military and civilian sectors go hand in hand, and are optimistic about investment opportunities in the additive manufacturing sector. In 2024Q1, the company achieved operating income of 206 million yuan, +54.72% over the same period last year; realized net profit of 1.3435 million yuan, turning a loss into a profit, and -28 billion yuan in the same period last year. We believe that: 1) In the military sector, additive manufacturing not only conforms to the “one main” logic, can be applied to explosive main combat equipment such as military aircraft, missiles, and engines, but also conforms to the “penetration rate increase” logic, that is, it is rapidly rising from low penetration rate to high penetration rate in various types of main combat equipment; 2) In the field of civilian products, additive manufacturing technology is expected to build large-scale mass production and higher yield supply chain systems in emerging fields such as consumer electronics and commercial aerospace. It is recommended to continue to pay attention to investment opportunities in the “additive manufacturing” sector in Huatai Military's main “one main, two rate” investment line.
The substantial implementation of the fixed increase is expected to further improve the integrity of the industry chain. The company announced the “2022 Report on the Issuance of A Shares to Specific Targets” on 2023.12.15. The total amount of capital raised by issuing shares to specific targets is RMB 3,029 billion, and the actual net amount of capital raised is RMB 3.07 billion. According to the company's 2023.5.19 announcement “Response to the Audit Inquiry Letter (Revised Draft)”, the fixed increase will add 800 tons of metal powder production capacity and 1.6 million hours of printing time for additive manufacturing structural parts. The production capacity bottleneck is expected to gradually ease. At the same time, the self-supply ratio of upstream raw materials will be greatly increased, cost control capacity and industrial chain integrity are expected to be further strengthened, and the company's leading 3D printing position in China will be further stabilized.
Deeply involved in multiple 3D printing routes, the entire equipment/material/product service industry chain companies focus on the SLM and LSF processes, and actively promote WAAM process research and development to build a complete metal 3D printing industry chain. In terms of equipment, the BLT-S1500 released by the company in 2023 has a molding size of 500mm×1500mm×1200mm, which can simultaneously scan 26 lasers. In terms of raw materials, the company has completed the construction of 10 high-quality metal powder production lines for additive manufacturing, and has successfully developed high-quality titanium alloy and high temperature alloy powders. In terms of products and services, more than 80 kinds of materials can be molded. According to the company's annual report, as of December 2023, the company has established cooperative relationships with more than 2,600 organizations and participated in supporting the construction of many key models in the country.
Risk warning: The downstream customer sector is concentrated; the key core components of additive manufacturing equipment rely on imports.