Incident: On January 21, 2025, the company announced a preliminary increase in annual results for 2024. It is expected to achieve net profit of 1.17 billion yuan to 1.26 billion yuan in 2024, an increase of 0.271 billion yuan (+30.14%) to 0.361 billion yuan (+40.16%) over the previous year, and achieved non-net profit deducted from the mother of 1.14 billion yuan to 1.23 billion yuan, an increase of 0.263 billion yuan over the previous year (+ 29.99%) to 0.353 billion yuan (+40.25%).
Product and operational advantages continue to be highlighted. Looking at a single quarter, the company achieved net profit of 0.303 billion yuan to 0.393 billion yuan in 2024Q4, and net profit of 0.282 billion yuan to 0.372 billion yuan after deducting non-return net profit, which continued to be steady compared to 2024Q3.
As a leading enterprise in the aluminum heat transfer materials market, the company relies on its core competitive advantages to continuously explore domestic and overseas markets. The customer base and core customer share are steadily increasing, sales are steadily increasing, and the product structure is continuously being optimized for high technology and high added value. Actively implement lean, digitally intelligent, green and low-carbon management at production sites, effectively reduce costs and increase efficiency, and work together to promote performance growth.
High-end products reinforce core competitive advantages, and technological innovation boosts performance growth. The company has always been guided by the three strategic ideas (high-end market, high-end customers, high value/high contribution rate products), and has continuously increased investment in R&D. It has made many breakthroughs in production technology and product performance. R&D results have been implemented smoothly, continuously improving product yield and quality, and boosting performance growth.
We believe that the company's products adhere to the direction of high added value, and that the core competitiveness of high-end products and industry barriers are remarkable. We forecast the company's earnings per share for 2024-2026 to be 1.22, 1.47, and 1.56 yuan respectively (the original forecast earnings per share for 2023-2025 were 0.84, 0.95, and 1.07 yuan, respectively. The reason for the increase in the forecast value was mainly due to the company's new project commissioning progress exceeding expectations). The company is a leading enterprise in the domestic aluminum heat transfer materials segment. It is deeply involved in high-end heat transfer aluminum plate and foil materials. Based on the comparable company's price-earnings ratio valuation in 2025, the company was given a price-earnings ratio of 15 times in 2025, with a target price of 22.05 yuan, maintaining the purchase rating.
Risk Alerts
There is a risk that the production capacity release of the Chongqing plant falls short of expectations, the risk that the processing cost of aluminum sheet and foil falls short of expectations, the risk that the industry's production capacity release is too rapid, the macroeconomic growth rate is slowing down, and the expansion of new application fields falls short of expectations.
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