Incident: Yunlu Co., Ltd. released its 2024 semi-annual report. The company achieved operating income of 0.91 billion yuan in the first half of the year, an increase of 7.37% over the previous year; net profit attributable to shareholders of listed companies was 0.167 billion yuan, an increase of 1.62% over the previous year.
Comment:
The company's three main products have been laid out on multiple racetracks. The company focuses on the design, R&D, production and sales of advanced magnetic metal materials. The main products include amorphous alloys, nanocrystalline alloys, magnetic powders and their products. Compared with traditional materials such as silicon steel and ferrite, the company's three main products have obvious advantages in terms of energy saving and efficiency. They are green recyclable materials throughout the life cycle of “manufacturing energy efficient, energy efficient use, and energy recycling”. The company has developed an industrial layout in the 50Hz to 100MHz ultra-wide band, including global power equipment, mobile payload motors, photovoltaics, power inductors for home appliances, wireless charging, chip inductors for consumer electronics, extreme applications, and EMI filters for power electronics.
The company's products are exported overseas. After years of overseas market expansion, the company has now sold its products to more than 10 countries and regions, including Southeast Asia, South Asia, and North America, covering more than 70 grid companies around the world. It has established long-term and stable cooperative relationships with well-known domestic and foreign manufacturers in the power electronics industry, and has become a partner of companies such as National Grid, Oaks, Japan's Toshiba, ABB, etc. In addition, the company uses new products, nanocrystalline ultra-thin strips and magnetic powders and products to expand applications in the fields of consumer electronics, new energy vehicles, etc., and devices or terminal products made from the company's products have been widely used by internationally renowned high-quality customers.
The company's three main products are developing steadily, and R&D expenses have increased dramatically over the same period last year. The company continues to expand the application of amorphous products around the world, further enhancing the company's ability to withstand risks in the complex and changing global economic environment. At the same time, the company's construction of a new “amorphous production line with an annual output of 0.015 million tons” is progressing smoothly and is expected to be completed in the second half of 2024. The company continues to improve the stability and reliability of nanocrystalline and soft magnetic powder products to achieve sales growth; at the same time, powder and nanocrystalline products have been recognized by customers in the fields of optical storage and new energy vehicles. The company continued to increase its R&D investment. In the first half of 2024, the company's R&D investment reached 59.2736 million yuan, an increase of 65.61% over the previous year.
Profit forecast and investment rating: The company's revenue for 2024-2026 is estimated to be 2.007/2.728/3.526 billion yuan, respectively, and net profit to mother is 0.391/0.573/0.758 billion yuan, respectively. Considering that the company's three main products continue to be deployed on multiple tracks and production lines are about to be put into operation, the sales volume of the company's three main products is expected to increase, giving the company a “buy” rating.
Risk warning: the risk of fluctuations in the price of raw materials for the company's products; the risk that R&D progress in new application fields falls short of expectations; the risk that the gross margin of the company's products will fall short of expectations; the risk that performance forecasts and valuation judgments fall short of expectations.