The company issued the “2023 Annual Results Report Notice”. During the period, it is expected to achieve operating income of 2.803 billion yuan, an increase of 20.01% year on year; achieve net profit of 576 million yuan, an increase of 30.23% year on year; and achieve net profit without return to mother of 568 million, an increase of 27.89% year on year.
The company released the 2023 annual performance report to achieve high-quality development. The company issued the “2023 Annual Results Report Notice”. During the period, it is expected to achieve operating income ($2,803 million, +20.01% year over year); expected to achieve net profit to mother (576 million, +30.23% year over year); and net profit without return to mother (568 million, +27.89% year over year). Based on this calculation, the 23Q4 single quarter is expected to achieve revenue (608 million, +18.29% year over year); net profit to mother is expected to be realized (73 million, +81.59% year over year). In 2023, the company will implement the main business development ideas, focus on high-quality operation, accelerate innovation and transformation, and comprehensively promote the high-quality development of the company.
Raise capital to ease the tight production capacity situation, and the asset injection plan helps the company develop. According to the company's prospectus, the scope of capital raised by the company's IPO covers the company's four major business segments. The core is to ease the tight production capacity situation in the major businesses and to prepare for future increases in downstream demand. It is expected that the company's revenue and profitability will continue to increase as the company's fund-raising projects are completed. Furthermore, according to the prospectus, the injection plan of Zhenjiang Titanium Alloy Company, which is managed by the company, is clear. It currently undertakes the front and back stages of titanium alloy castings, and will further increase the production capacity and processing capacity of titanium alloy castings after future injections to help the company continue to develop.
The company's four major divisions come from the Aviation Materials Research Institute. They have a long technical history and a first-mover advantage. The company's four major divisions: Titanium Alloy Precision Casting Division, Rubber and Sealants Division, Aircraft Cabin Transparent Parts Division, and High Temperature Alloy Casting Division, all come from the Aviation Materials Institute. They have a long history of technology development and research, and have obvious first-mover advantages, and each business is in a leading position in the country in their respective fields. As a core supplier in the aviation industry chain, the company will benefit from the future trend of military and civilian aircraft deployment.
Profit forecast: The company's net profit for 2023/2024/2025 is estimated to be 576/7.05/843 million yuan, corresponding to a valuation of 39, 32, and 27 times, maintaining a “highly recommended” rating.
Risk warning: The pace of production expansion falls short of expectations, and orders fall short of expectations.