Quarterly results: company 22 achieved revenue of 293 million yuan in the first three quarters, yoy-25.94%; returned to its mother net profit of 70 million yuan, yoy+1.36%, deducted non-net profit of 56 million yuan, yoy-14.96%.
Among them, Q3 realized revenue of 79 million yuan, yoy-37.21%, month-on-month ratio of-26.06%; net profit of 18 million yuan, yoy-19.81%, month-on-month ratio of-25.82%.
The demand of die-hard fans is expected to improve Q4, and the profit margin will be boosted compared with the previous month.
On the demand side, Q3 revenue is-37.21% year-on-year and month-on-month is-26.06%. We believe that it is mainly due to weaker demand downstream; on the interest rate side, raw material price scissors converge slightly, 22Q3 gross profit margin is 25.17%, year-on-year + 0.11pct, month-on-month ratio-0.86pct; superimposed cost control is enhanced & appreciation of financial assets, 22Q3 net profit 23.28%, year-on-year + 5.05pct, month-on-month + 0.07pct.
Short-term iron powder + medium-term soft magnetic + long-term new source parts, enabling company multiplicative growth to raise investment and expand production-the transformation and upgrading project has achieved a jump in total production capacity from 80,000 tons to 200000 tons, of which atomized iron powder reached 180000 tons, continuously contributing to the growth of the company. At the same time, relying on the advantages of existing equipment + technology + experience + raw material sharing, the company actively arranges the business of soft magnetic and new energy parts, which is expected to open room for growth and valuation: (1) soft magnetic production capacity of 25000 tons, iron and silicon stand firm optical storage of new energy high prosperity track, iron, silicon and chromium application electronic scene, amorphous nanocrystal sword points to high-performance high-frequency scene. (2) the total production capacity of key components of new energy equipment is 22000, including wind power spindle, pumped storage turbine spindle, hydrogen storage bottle and other key components, and the project is expected to achieve a profit of about 600 million yuan.
Investment suggestion: as the leader of domestic atomized iron fans, the company's core business technology + cost + customer advantage is significant, soft magnetic and new energy are expected to open the second growth pole. The basic market is growing steadily, and the new business is expected to enjoy the re-upgrading of prosperity and valuation. The new production capacity of the fund-raising and transformation project will be released soon. The company's revenue in 2022-2024 is expected to be RMB 454,04max, respectively. The net profit of return to the mother is RMB 0.94pm, respectively (considering the weak demand for atomized iron powder during the year, the expected shipments and selling prices are slightly reduced. The previous value is 1.22 pound 1.65 pound 268 million), maintaining the "buy" rating.
Risk hint: the risk of market demand fluctuation, the risk of project construction falling short of expectations, and the risk of raw material price fluctuation.