首次覆盖西部 材料，目标价23.69 元，给予“增持”评级。高端钛材行业高景气，特种领域装备建设带动钛材需求高速增长，核电项目建设提速带动核级产品业绩高速增长，我们预计2024~2026 年EPS 为0.45、0.59、0.74 元，给予目标价23.69 元，对应2025 年41倍PE，给予“增持”评级。Introduction to this report:
The titanium industry is booming, and the market potential for equipment in special fields is huge. Accelerated construction of nuclear power projects is driving rapid growth in the performance of nuclear grade products. The company's processing industry chain is complete, and the performance is expected to exceed expectations.
Key investment points:
It covers Western materials for the first time. The target price is 23.69 yuan, giving it an “increase in weight” rating. The high-end titanium industry is booming, and equipment construction in special fields is driving rapid growth in demand for titanium, and the acceleration of nuclear power project construction is driving rapid growth in nuclear grade product performance. We expect EPS to be 0.45, 0.59, and 0.74 yuan from 2024 to 2026, with a target price of 23.69 yuan, corresponding to 41 times PE in 2025, giving a “gain” rating.
Equipment construction in special fields is driving the boom in the high-end titanium industry, with huge market potential, and accelerated construction of superimposed nuclear power projects. We believe that as a core supplier of high-end titanium and rare metals, the company's performance is expected to maintain high growth. 1) Affected by the expansion of production of titanium sponge, the raw material for titanium production, and the decline in market price fluctuations, the titanium industry is booming and production capacity is rapidly released; 2) Titanium alloy is used in special fields such as military and civilian aircraft, marine ships, unmanned submarines, armored vehicles, etc., and equipment construction is expected to drive rapid growth in demand for titanium; 3) It is expected that by 2030, the scale of installed nuclear power equipment in China is expected to become number one in the world. Silver alloy control rods for nuclear power are expected to be one of the key materials for nuclear reactors. Over 0.09 Million branches, broad market space.
The company has a complete processing industry chain, in-depth development in various fields, and continuous promotion of production capacity construction. 1) The company is the main R&D and production base for high-end titanium alloy materials in China and the main manufacturer of zirconium materials, forming a complete industrial chain including smelting, forging, rolling and deep-processing products. The revenue and profit of the western titanium industry grew rapidly. The compound growth rate from 2019 to 2023 reached 20.9% and 42.4% respectively. Equipment construction is expected to drive the company's titanium revenue to continue to grow rapidly; 2) Tianli Composite's market share in the layered metal composite material industry is 20% to 30%, ranking first in the country; 3) Sino Precious is the only domestic producer of silver alloy bars for nuclear power. nickel Base alloy products provide the main structural materials for multiple nuclear reactors, and rare metal materials such as space-grade tantalum-niobium alloys and AgMgNi alloys have been successfully applied to key projects such as “Shenzhou” and “Chang'e”; 4) The company's production capacity continues to climb, and the production capacity of ingots, alloy sheets, and pipes has increased to 20,000, 1000, and 1500 tons/year respectively, and the joint technology center construction project is progressing smoothly; in 2024, the company launched the “Technical Improvement Project for Large and Low-Cost Titanium Alloy Production Lines for Marine Engineering”..
Catalysts: Accelerating the construction of equipment in the downstream special field of titanium and nuclear power projects Risk warning: Downstream military customer demand falls short of expectations, and the progress of new product development falls short of expectations
