存货与固定资产增长显著，经营杠杆效应显现：截至2024 年三季度，公司存货达到2.43 亿元，同比增长170.61%，固定资产3.61 亿元，同比增长40.08%。公司存货的显著增长主要是由于销售订单的增加，导致原材料、发出商品及合同履约成本相应增加。同时，固定资产的增长反映出公司正在扩大生产能力，以提升资产规模，通常是为了满足日益增长的市场需求和提升公司的生产效率。这些变化表明公司正在积极扩张，处于一个快速发展和深化发展的阶段。随着经营杠杆效应的显现，预计未来公司将进一步提升其市场竞争力和盈利能力。Incident: The company publishes its quarterly report for the third quarter of 2012. The company achieved operating income of 0.738 billion yuan in the first three quarters, an increase of 22.55% year on year; realized net profit of 0.309 billion yuan to mother, an increase of 14.41% year on year.
Key points of investment
Model tasks are full, orders for new products have increased, and production and sales have increased steadily: the company achieved revenue of 0.738 billion yuan in the first three quarters, an increase of 22.55% over the previous year; net profit to mother was 0.309 billion yuan, an increase of 14.41% over the previous year. Among them, the third quarter achieved revenue of 0.253 billion yuan, a year-on-year increase of 14.77%, and realized net profit to mother of 0.094 billion yuan, an increase of 8.01% over the previous year. The main reason for the continuous improvement in the company's performance is that the company continues to receive new model tasks and new product orders, and production and sales are steadily increasing, leading to an increase in revenue and profitability. At the same time, we are actively promoting the construction of fund-raising projects, improving production capacity, and meeting market demand. In this context, the company's net cash flow from operating activities reached 0.157 billion yuan in the first three quarters of 2024, a year-on-year increase of 314.85%.
Inventories and fixed assets grew significantly, and the operating leverage effect was evident: as of the third quarter of 2024, the company's inventory reached 0.243 billion yuan, up 170.61% year on year, and fixed assets were 0.361 billion yuan, up 40.08% year on year. The significant increase in the company's inventory was mainly due to an increase in sales orders, which led to a corresponding increase in raw materials, goods shipped, and contract performance costs. At the same time, the growth of fixed assets reflects the company's expanding production capacity to increase the size of assets, usually to meet growing market demand and improve the company's production efficiency. These changes indicate that the company is actively expanding and is in a phase of rapid development and deepening development. As the operating leverage effect becomes apparent, it is expected that the company will further enhance its market competitiveness and profitability in the future.
Three important contracts have been announced this year, and the scale of the domestic new materials industry continues to expand: the company announced the signing of stealth materials sales contracts on January 17, January 30, and July 4, 2024, respectively, with amounts of 0.31 billion yuan, 0.332 billion yuan, and 0.132 billion yuan respectively. These contracts are expected to have a positive impact on current results. Thanks to growing demand in the military aviation and maintenance markets, the company's performance has potential to grow. Under the combined influence of the three major factors of policy, capital, and market, the market size of China's new materials industry has rapidly increased, and it has become an important pillar industry for economic development. China's new materials industry has achieved significant growth in recent years. As a leading company in new materials, Huaqin Technology has certain advantages in technology and industry. Among them, in the special functional materials industry transformation sector, such as stealth materials and protective materials, the technology has reached the international advanced level and will quickly occupy market share in the future.
Profit forecast and investment rating: The company's performance is in line with expectations. Based on the company's leading position in the stealth materials industry and the fact that the company has received large orders since 2024, we maintain our previous forecast. The company's net profit to mother for 2024-2026 is 0.505/0.674/0.867 billion yuan, respectively, and the corresponding PE is 33/25/19 times, respectively, maintaining a “buy” rating.
Risk warning: 1) High customer concentration and risk of dependence on major customers; 2) risk of loss of core competitiveness; 3) risk of fluctuations in the company's profits due to military pricing methods.
