Institution: Changjiang Securities
Researcher: Matthew / Wang Ming
Event description
The company released its quarterly report of 2024, achieving revenue of 8%.Mysteryreelsmegaways.300 million yuan (year-on-year + 5.2%, month-on-month-22.9%), achieve attributable net profit of 130 million yuan (year-on-year + 8.0%, month-on-month + 4.0%), and realize attribution deduction of non-net profit of 120 million yuan (year-on-year + 20.0%, month-on-month-13.1%).
Event comment
Through endogenous growth and horizontal mergers and acquisitions, the company continues to set foot in the new field of ceramic materials. Electronic materials, continue to expand the scale of MLCC (powder materials, electronic nano-zirconia, electronic paste) and enter into new energy fields (alumina and boehmite for diaphragm coating of lithium batteries, positive additives, zirconia beads for positive and negative polishing, nano-powders for hydrogen production from alkaline water) and other fields.MysteryreelsmegawaysCatalytic materials, layout of automotive exhaust gas treatment materials (honeycomb ceramics, cerium-zirconium solid solutions, molecular sieves), biomedicine, layout dental field (zirconia powder, ceramic blocks, resin ceramics), other materials, focus on ceramic beauty (ceramic ink, color glaze), precision ceramic structures (optical fiber casing, ceramic bearing ball, ceramic substrate, ceramic shell, etc.).
The business trend has improved over the past 24 years. Electronic materials, benefiting from the rapid growth of downstream demand, automotive electronics and other emerging fields, the company's MLCC media powder sales rebounded, with a high degree of customer cooperation, MLCC electronic paste business market opened up smoothly, has successfully developed and mass-produced many kinds of products with customers, and the development trend is good. Catalytic materials, with the rapid recovery of domestic commercial vehicles, passenger vehicles and other markets, the sixth national emission standards continue to fall to the ground, and the superposition company has been successfully applied to head heavy trucks, a number of passenger vehicles, traditional fuel and hybrid main models, and the business has entered a rapid release period. Biomedical, the company's zirconia ceramic block business continues to increase its domestic market share, overseas has successfully entered part of the head customer supply system, strategic acquisition of Germany's Dekema, the business is expected to grow steadily; new energy, the company's high-purity ultra-fine alumina and boehmite products have covered the mainstream lithium battery manufacturers and major lithium battery separator manufacturers at home and abroad, and their production and sales have increased rapidly. Precision ceramics and Guocao Jinsheng silicon nitride ceramic bearing balls have successfully passed the verification of many mainstream manufacturers. with the promotion of 800V high voltage fast charging technology of new energy vehicles, the electric corrosion of steel ball bearings of traditional drive motors has become more prominent. the company's ceramic ball has been equipped with the main model of the head new energy vehicle company. The national porcelain Jinsheng high-end bearing ball expansion project (phase I) has been completed for trial production. It is expected that after the silicon nitride powder production capacity is put into use, the company's industrial chain integration advantage will be further revealed. The performance of high thermal conductivity aluminum nitride ceramic substrate has reached the same level as that of international head manufacturers, the National Ceramic Saigon has a competitive advantage in the field of LED and lidar, DPC substrate business has maintained rapid growth, laser heat sink and other new products have entered the industry head customer's supply chain system and mass sales; other materials, building ceramic materials rely on strong competitiveness to achieve a leading position in the industry, and Koda manufacturing to develop overseas markets together.
Overall, the company's catalytic materials and precision ceramics after pre-verification, is in a rapid volume stage, is expected to bring strong growth for the company.
The company's gross profit margin and net profit margin rose year-on-year. 24Q1 annual gross profit margin / net profit rate was 38.8% / 17.7%, year-on-year change + 1.5 pct / + 0.9 pct, benefiting from the pick-up in terminal demand and the rapid volume of the company's catalytic materials business, the gross profit margin tended to rise, and the company's financial expense rate decreased by 0.7 pct year-on-year, mainly due to an increase in exchange earnings during the reporting period.
The company is based on ceramic materials and has obvious advantages in industrial clusters. Through the core advantages of technology research and development, we build solid barriers and lean management systems to ensure product quality. It is estimated that the net profit attributable to 24-26 years will be 7.7kg 1.04 billion RMB 1.39 billion, maintaining the "buy" rating.
Risk hint
1. The demand in various fields is lower than expected.
2. Downstream customer verification is not as expected.