occurrences

For the full year of 2023, the company achieved revenue of 46.311 billion yuan, a year-on-year increase of 14.08%, and net profit to mother of 529 million yuan, an increase of 295.92% over the previous year. 2024Q1 achieved operating income of 10.796 billion yuan, a year-on-year increase of 12.70%, and net profit to mother of 103 million yuan, an increase of 8.32% over the previous year.

reviews

The copper-based materials sector is growing steadily. In the face of fierce industry competition and complex market environment, Chujiang New Materials has always maintained a strong competitive cost advantage and a certain market share advantage. In 2023, the copper-based materials sector achieved revenue of 44.913 billion yuan, up 13.70% year on year, and sales volume surpassed 940,000 tons, up 11.51% year on year. Among them: copper plate products were 326,900 tons, up 5.43% year on year; copper conductor products were 410,900 tons, up 19.10% year on year; and copper alloy products were 53,600 tons, up 11.12% year on year.

The project was gradually implemented to reach a scale of 1 million tons in 2025. In 2023, the company's copper-based materials sector relied on scale and cost advantages, customer recognition and market share continued to increase, and business scale continued to grow. At the same time, the market gradually picked up, product processing costs increased, and profitability further recovered. By the end of the 14th Five-Year Plan, the company plans to have a production capacity of more than 1 million tons of copper-based materials, including 400,000 tons of precision copper strips, 500,000 tons of copper conductor materials, and about 100,000 tons of copper alloy wire. At the same time, the company is also laying out high-end fields, speeding up the construction of projects such as “50,000 tons of high-precision copper alloy strips and foils per year” to help expand products into high-precision fields.

The military carbon materials sector has maintained a good development trend. While focusing on high-end thermal equipment, Dingli Technology is expanding its business in the new materials sector based on its own equipment and technical advantages. The tantalum carbide industrialization project has been completed and put into operation around the “four highs, two coats and one equipment” technology and product layout, achieving internal quality and efficiency improvements and steady scale growth. During the reporting period, Dingli Technology achieved revenue of 645 million yuan, an increase of 41.53% over the previous year, and achieved a rapid increase in net profit of 126 million yuan, an increase of 105.33% over the previous year.

Tiantao Hi-Tech has full orders and stable performance. In 2023, Tianniao Hi-Tech achieved operating revenue of 774 million yuan, an increase of 7.06% over the previous year. At the same time, the company is speeding up the increase in the consumer product scale of carbon fiber composites and extending it downstream in the consumer goods sector. Its subsidiary Wuhu Tianniao Phase I Thermal Field Composites has a planned production capacity of 400 tons. By optimizing production processes and improving equipment usage efficiency, the company continuously improves production capacity utilization to meet downstream order demand.

Profit forecasting

We expect the company's net profit to be 6.32/778/953 million yuan in 2024-2026, corresponding EPS of 0.48/0.59/0.72 yuan, and PE of 14.70/11.95/9.75 times. Maintain a “buy” rating.

Risk warning:

Raw material prices fluctuated greatly, industry policies changed, project progress fell short of expectations, and downstream demand fell short of expectations.