Investment Rating - Maintained rating: **Recommend** [1] Core Views - The company's net profit attributable to shareholders in 2024 is expected to increase by **108.81%~115.14%** YoY, reaching **66~68 million yuan**, with a significant turnaround in Q4 2024, achieving a net profit of **23.88~25.88 million yuan**, a YoY increase of **95.52%~111.90%** [4] - The company's main products, nickel strips and foils, have seen significant sales growth due to increased penetration of new energy vehicles and rapid development of the energy storage market [4] - The company's gross margin has improved in 2024 due to more stable fluctuations in the price of electrolytic nickel, the main raw material, compared to 2023 [4] - The company has a clear advantage in industrial chain integration, with its subsidiary Jintai Ke further processing nickel strips and foils, expanding strategic customer cooperation and diversifying product applications [4] - The company's precision structural component, **Thermal Cut-Off (TCO)**, has seen increasing revenue contribution, with sales growing from **2 million yuan in 2020 to 50 million yuan in 2021**, and maintaining a growth rate of over **20%** in 2022 and 2023 [4] - The company is expected to achieve net profits of **67/77/88 million yuan** in 2024-2026, with YoY growth rates of **112.44%/15.08%/14.36%**, and corresponding P/E ratios of **22/19/17** [4] Financial Forecasts Income Statement - Revenue is expected to grow from **836 million yuan in 2024** to **1,137 million yuan in 2026**, with growth rates of **3.25%/17.58%/15.67%** [5] - Net profit attributable to shareholders is forecasted to increase from **67 million yuan in 2024** to **88 million yuan in 2026**, with growth rates of **112.44%/15.08%/14.36%** [5] - Gross margin is expected to improve from **10.42% in 2023** to **14.83% in 2024**, and remain stable at around **14.55%~14.60%** in 2025-2026 [5] Balance Sheet - Total assets are projected to grow from **1,051.47 million yuan in 2024** to **1,266.04 million yuan in 2026**, driven by increases in current assets such as cash and receivables [7] - Total liabilities are expected to rise from **127.32 million yuan in 2024** to **176.26 million yuan in 2026**, with short-term borrowings increasing significantly [7] Cash Flow Statement - Operating cash flow is forecasted to improve significantly in 2024, reaching **117.42 million yuan**, compared to **-24.55 million yuan in 2023** [7] - Net cash increase is expected to be **107.89 million yuan in 2024**, with continued positive cash flow in subsequent years [7] Key Financial Ratios - ROE is expected to increase from **3.67% in 2023** to **8.11% in 2026**, reflecting improved profitability [8] - The company's P/E ratio is projected to decrease from **47.36 in 2023** to **16.94 in 2026**, indicating potential undervaluation [8] - The company's net debt ratio is expected to remain negative, indicating a strong financial position with minimal debt [8]

Company Overview - The company, Yuanhang Precision (833914), is a leading enterprise in the field of precision nickel-based conductor materials, specializing in the production of nickel strips, foils, and precision structural components [8][11] - Established in 2006 and listed on the Beijing Stock Exchange in 2022, the company has accumulated significant R&D achievements, holding 12 invention patents and 83 utility model patents by 2023 [11] - The company's main products are widely used in consumer electronics, new energy vehicles, power tools, electric bicycles, energy storage, aerospace, and metal commemorative coins [11] Financial Performance - In 2023, the company reported revenue of 810 million yuan, a year-on-year decrease of 10.59%, and net profit attributable to shareholders of 32 million yuan, a year-on-year decrease of 40.87% [8][20] - The company's revenue and net profit are expected to recover in 2024, with revenue projected to reach 873.56 million yuan, a year-on-year increase of 7.89%, and net profit expected to reach 63.85 million yuan, a year-on-year increase of 102.02% [8][20] - The company's gross profit margin in 2023 was 10.42%, down 3.72 percentage points year-on-year, but it is expected to rebound to 14.98% in 2024 [24] Industry and Market Analysis - The demand for precision conductor materials is driven by the growth of power batteries, consumer batteries, and energy storage batteries [8] - The power battery market is expected to grow steadily, with shipments exceeding 1000GWh in 2024, a year-on-year increase of 24%, and 1300GWh in 2025, a year-on-year increase of 25% [8] - The energy storage battery market is expected to grow rapidly, with shipments reaching 330GWh in 2024, a year-on-year increase of over 50%, and 500GWh in 2025, a year-on-year increase of 51% [8] - The consumer battery market is supported by the electronics and AI sectors, with demand expected to remain stable and grow with emerging applications such as AIPC and smart robots [8] Strategic Development - The company is focusing on vertical integration, leveraging its R&D capabilities and technical advantages to maintain a leading position in the industry [8][43] - The company has established strong partnerships with major clients such as Panasonic, LG, Zhuhai CosMX, and EVE Energy, benefiting from the increasing downstream demand [8][48] - The company is expanding its production capacity, with plans to increase the production of precision nickel strip materials by 2500 tons and precision alloy stamping parts by 835 million pieces by 2025 [8][50] Investment Rating and Valuation - The company is given a "Buy" rating for the first time, with an expected net profit of 64 million yuan in 2024, a year-on-year increase of 102%, and a PE ratio of 22 times [8][55] - The company's valuation is considered attractive compared to peers, with a PE ratio of 22/19/16 times for 2024-2026, lower than the average PE ratio of -48/38/19 times for comparable companies [55][56]

Investment Rating - No rating provided for the company [3] Core Views - The company's non-GAAP net profit attributable to the parent company increased by 33.89% YoY in the first three quarters of 2024 [1] - Revenue for Q1-Q3 2024 was 607.15 million RMB, a decrease of 3.72% YoY, while net profit attributable to the parent company was 42.12 million RMB, an increase of 11.90% YoY [1] - Gross margin for Q1-Q3 2024 was 14.98%, an increase of 3.38 percentage points YoY, and net profit margin was 6.94%, an increase of 0.97 percentage points YoY [1] - In Q3 2024, revenue was 219.46 million RMB, an increase of 6.41% YoY, while net profit attributable to the parent company was 12.21 million RMB, a slight decrease of 0.37% YoY [1] - The company's gross margin in Q3 2024 was 13.55%, an increase of 2.58 percentage points YoY, but net profit margin decreased by 0.38 percentage points to 5.56% [1] Financial Performance - The company's operating cash flow was negative at -15.60 million RMB for the first three quarters of 2024 [1] - Total asset turnover ratio was 0.59, slightly lower than the previous year [1] - Sales expense ratio was 1.09%, an increase of 0.25 percentage points YoY, while management expense ratio was 3.01%, an increase of 0.54 percentage points YoY [1] - R&D expense ratio was 3.61%, an increase of 0.12 percentage points YoY, and financial expense ratio was 0.32%, an increase of 0.65 percentage points YoY [1] Company Overview - The company specializes in the R&D, production, and sales of precision nickel-based conductor materials for batteries [1] - It has capabilities in producing nickel strips, foils, and downstream precision structural components, primarily used in lithium batteries and other secondary battery products [1] - Its products are widely used in consumer electronics, new energy vehicles, power tools, electric bicycles, energy storage, aerospace, and metal commemorative coins [1] - As of December 9, 2024, the company's market capitalization was 1.554 billion RMB, with a TTM PE ratio of 43.06x [1] Historical Financials - Revenue in 2023 was 809.67 million RMB, a decrease of 10.59% YoY, while net profit attributable to the parent company was 31.61 million RMB, a decrease of 40.87% YoY [2] - Gross margin in 2023 was 10%, a decrease from 14% in 2022 [2] - ROE in 2023 was 3.66%, a significant drop from 8.13% in 2022 [2] - EPS in 2023 was 0.32 RMB, down from 0.69 RMB in 2022 [2]

Investment Rating - The report maintains a "Recommend" rating for the company, indicating a positive outlook on its stock performance relative to the benchmark index [4] Core Views - The company's non-GAAP net profit grew by 33.89% YoY in the first three quarters of 2024, driven by stable nickel prices and improved profitability [1] - Revenue for the first three quarters of 2024 was RMB 607.15 million, a slight decline of 3.72% YoY, while net profit attributable to shareholders increased by 11.90% YoY to RMB 42.13 million [1] - The company's gross margin and net margin for the reporting period were 14.98% and 6.94%, respectively, with a stable overall profitability level [1] - The TCO (Thermal Cut-Off) product sales have shown consistent growth, with sales expected to double in 2024 compared to 2021, reaching RMB 100 million [2] - The company's vertical integration strategy, combining material production and product processing, provides a competitive advantage in the precision nickel-based conductor materials industry [2] Financial Performance and Projections - The company's revenue for Q3 2024 was RMB 219.46 million, a 6.41% YoY increase, with a non-GAAP net profit of RMB 11.00 million, up 38.20% YoY [1] - The company's 2024-2026 net profit attributable to shareholders is projected to be RMB 55 million, RMB 66 million, and RMB 79 million, respectively, with YoY growth rates of 75.33%, 18.99%, and 19.25% [3] - The company's PE ratios for 2024-2026 are estimated at 38x, 32x, and 27x, respectively, reflecting a gradual decline in valuation multiples [3] - The company's gross margin is expected to improve from 10.42% in 2023 to 13.90% in 2026, driven by stable nickel prices and operational efficiency [8] Business and Industry Analysis - The company's products, including nickel strips, foils, and precision structural components, are widely used in lithium batteries, consumer electronics, aerospace, and new energy vehicles [1] - The company has established a strong presence in the TCO market, supplying major lithium battery manufacturers such as Zhuhai CosMX and CATL, and serving end customers like Lenovo and Dell [2] - The company's ongoing project to produce 835 million precision alloy stamping parts annually is progressing as planned, with expected completion by mid-2025 [2] - The company's vertical integration strategy, with parent company Yuanhang Precision producing nickel strips and foils and subsidiary Jintai Ke processing these materials, enhances its competitive position in the industry [2] Market and Valuation - The company's A-share closing price on November 5, 2024, was RMB 16.20, with a total market capitalization of RMB 1.62 billion [4] - The company's PB ratios for 2024-2026 are projected at 2.31x, 2.15x, and 1.99x, respectively, indicating a gradual decline in valuation relative to book value [8] - The company's EV/EBITDA ratios for 2024-2026 are estimated at 25.10x, 21.38x, and 18.07x, reflecting a decreasing valuation relative to earnings before interest, taxes, depreciation, and amortization [8]

Customer Distribution - The company's products, including nickel strips, foils, and precision structural components, are primarily used in lithium batteries and metal commemorative coins [3] - End-use applications include consumer electronics, power tools, cordless home appliances, aerospace, coin minting, new energy vehicles, and energy storage [3] - In the coin minting and aerospace sectors, customers are end-use manufacturers (e.g., Shenyang Mint and China Electronics Technology Group Corporation No. 18 Research Institute) [3] - Other customers are mainly precision structural component processors and battery manufacturers, with a higher proportion of precision structural component processors [3] TCO Product Performance - TCO (Thermal Cut-off) is a thermal protection device used in battery module temperature protection systems for laptops and tablets [3] - The company invested in the TCO product line in 2020, with sales reaching nearly 2 million yuan that year [3] - Sales grew to 50 million yuan in 2021, with over 20% growth in both 2022 and 2023 [3] - Sales in 2024 are expected to double compared to 2021 [3] - Terminal customers for TCO products include Lenovo and Dell, supplied through customers like Zhuhai CosMX and CATL [3] Raw Material Impact - Electrolytic nickel prices dropped from nearly 230,000 yuan at the beginning of 2023 to around 130,000 yuan by the end of the year, a decrease of about 45% [4] - Nickel prices remained relatively stable from January to September 2024, positively impacting the company's gross margin compared to 2023 [4] Solid-State Battery Impact - The company's nickel strips, foils, and precision structural components are mainly used for current transmission outside the battery cell [4] - Solid-state batteries, which use solid electrodes and electrolytes, do not significantly affect the application of the company's products [4] Competitive Advantages and Future Outlook - The company has a unique advantage in the "material + product" integrated industrial chain, with parent company Yuanhang Precision producing nickel strips and foils, and subsidiary Jintai Ke further processing these materials [4] - With nearly 20 years of experience in the nickel strip, foil, and battery precision structural component industry, the company has accumulated a large number of high-quality customer resources and maintained a high market share [4] - The company holds multiple invention patents, primarily in production processes, ensuring product quality and technological leadership [4] - The company raised funds through an IPO to expand production capacity, improve production intelligence, and enhance economies of scale [4] - The company is optimistic about the industry's prospects due to the expanding battery application scenarios driven by new intelligent products like flying cars, AIPC (AI personal computers), and smart robots [4]

Customer Distribution - The company's products, including nickel strips, foils, and precision structural components, are primarily used in lithium batteries and metal commemorative coins [3] - Terminal applications include consumer electronics, power tools, cordless home appliances, aerospace, coinage, new energy vehicles, and energy storage [3] - In the coinage and aerospace sectors, customers are terminal application manufacturers: Shenyang Mint for coinage products and the 18th Research Institute of China Electronics Technology Group Corporation for aerospace products [3] - Other customers are mainly precision structural component processors and battery manufacturers, with a higher proportion of precision structural component processors [3] TCO Product Performance - TCO (Thermal Cut-off) is a thermal protection device used in battery module temperature protection systems for laptops and tablets [3] - The company invested in the TCO product line in 2020, with sales increasing year by year [3] - Sales in 2020 were nearly 2 million yuan, reaching 50 million yuan in 2021, with growth exceeding 20% in both 2022 and 2023 [3] - Sales in 2024 are expected to double compared to 2021 [3] - Terminal customers for TCO products are mainly Lenovo and Dell, supplied through customers like Zhuhai CosMX and CATL [3] Raw Material Impact - Electrolytic nickel prices dropped from nearly 230,000 yuan at the beginning of 2023 to around 130,000 yuan by the end of the year, a decrease of about 45% [4] - Nickel prices remained relatively stable from January to September 2024, positively impacting the company's gross margin compared to 2023 [4] Solid-State Battery Impact - The company's nickel strips, foils, and precision structural components are mainly used for current transmission outside the battery cell [4] - Solid-state batteries, which use solid electrodes and electrolytes, do not significantly affect the application of the company's products as only the electrolyte form changes [4] Competitive Advantages and Future Outlook - The company has a unique advantage in the "material + product" integrated industrial chain, with parent company Yuanhang Precision producing nickel strips and foils, and subsidiary Jintai Ke further processing these materials [4] - With nearly 20 years of experience in the nickel strip, foil, and battery precision structural component industry, the company has accumulated a large number of high-quality customer resources and maintained a high market share [4] - The company holds multiple invention patents, mainly in production processes, ensuring product quality and technological leadership [4] - Through IPO fundraising, the company is expanding production capacity, improving production intelligence, and enhancing economies of scale [4] - The company is optimistic about the industry's prospects due to the expanding battery application scenarios driven by new intelligent products like flying cars, AIPC (AI personal computers), and smart robots [4]

Financial Performance - Revenue for the first nine months of 2024 decreased by 3.72% to 607,151,026.48 yuan compared to the same period in 2023[5] - Net profit attributable to shareholders increased by 11.90% to 42,124,957.92 yuan for the first nine months of 2024[5] - Total operating income for the first nine months of 2024 was 607,151,026.48 RMB, down from 630,630,149.67 RMB in the same period of 2023[23] - Net profit for the first nine months of 2024 rose to 42,124,957.92 RMB, up from 37,645,720.49 RMB in the same period of 2023[24] - Operating profit for the first nine months of 2024 was 42,756,070.89 RMB, up from 39,868,982.96 RMB in the same period of 2023[24] - Total comprehensive income for the first nine months of 2024 was 42,124,534.03 RMB, compared to 37,640,141.77 RMB in the same period of 2023[24] - Operating income for the first nine months of 2024 was 478,844,247.56 yuan, compared to 519,494,819.84 yuan in the same period of 2023[25] - Net profit for the first nine months of 2024 was 30,243,961.82 yuan, up from 26,260,643.04 yuan in the same period of 2023[25] - Basic earnings per share increased to 0.42 yuan per share from 0.38 yuan per share[25] - Diluted earnings per share increased to 0.42 yuan per share from 0.38 yuan per share[25] Asset and Liability Changes - Total assets increased by 10.47% to 1,086,299,587.81 yuan as of September 30, 2024, compared to 983,325,707.99 yuan at the end of 2023[5] - Total assets increased to 1,086,299,587.81 yuan as of September 30, 2024, compared to 983,325,707.99 yuan at the end of 2023[17][19] - Current assets rose to 842,229,261.31 yuan from 782,514,598.06 yuan, with a notable increase in inventory from 116,735,290.11 yuan to 152,273,909.58 yuan[17] - Non-current assets grew to 244,070,326.50 yuan from 200,811,109.93 yuan, driven by an increase in fixed assets and construction in progress[17][18] - Total liabilities increased to 196,821,482.97 yuan from 121,994,402.57 yuan, with a significant rise in short-term borrowings from 34,635,818.01 yuan to 98,112,778.46 yuan[18][19] - Shareholders' equity increased to 889,478,104.84 yuan from 861,331,305.42 yuan, with retained earnings growing from 337,538,258.01 yuan to 369,763,215.93 yuan[19] - Total assets increased to 889,874,583.00 RMB from 831,591,931.23 RMB, reflecting growth in the company's asset base[21] - Fixed assets decreased slightly to 88,687,460.29 RMB from 92,458,599.10 RMB, indicating a reduction in long-term investments[21] - Short-term borrowings surged to 78,112,778.46 RMB from 24,624,206.90 RMB, indicating increased short-term financing needs[21] - Total liabilities increased to 121,661,681.52 RMB from 79,545,256.96 RMB, reflecting higher financial obligations[21] - Shareholders' equity grew to 768,212,901.48 RMB from 752,046,674.27 RMB, showing improved equity position[22] Cash Flow and Liquidity - Net cash flow from operating activities improved by 65.75% to -15,595,902.33 yuan, primarily due to reduced cash payments for goods and services[8] - Net cash flow from financing activities increased by 1,906.35% to 44,041,202.65 yuan, driven by increased borrowings and reduced equity distributions[8] - Cash and cash equivalents decreased to 173,534,488.58 yuan from 215,237,989.15 yuan, indicating a reduction in liquidity[17] - Cash flow from operating activities was -15,595,902.33 yuan, compared to -45,541,065.67 yuan in the same period of 2023[27] - Cash flow from investing activities was -69,992,752.23 yuan, compared to -126,570,826.84 yuan in the same period of 2023[28] - Cash flow from financing activities was 44,041,202.65 yuan, compared to -2,438,138.07 yuan in the same period of 2023[28] - Net cash outflow for the first nine months of 2024 was 41,702,963.20 yuan, compared to 174,375,414.79 yuan in the same period of 2023[28] - Cash and cash equivalents at the end of the period were 173,534,488.58 yuan, down from 215,237,451.78 yuan at the beginning of the period[28] - Net cash flow from operating activities in 2024 was 8,063,632.12 yuan, compared to a negative 53,232,426.85 yuan in 2023[29] - Net cash flow from investing activities in 2024 was -78,951,078.07 yuan, an improvement from -91,628,886.81 yuan in 2023[30] - Net cash flow from financing activities in 2024 was 34,104,083.25 yuan, compared to a negative 10,900,050.09 yuan in 2023[30] - Net increase in cash and cash equivalents in 2024 was -36,897,235.27 yuan, an improvement from -155,607,277.69 yuan in 2023[30] Accounts Receivable and Inventory - Accounts receivable increased by 36.87% to 230,321,891.06 yuan due to increased business with clients having longer credit terms[7] - Inventory increased by 30.44% to 152,273,909.58 yuan as the company expanded its inventory to improve supply efficiency[7] - Trade receivables increased to 230,321,891.06 yuan from 168,272,291.05 yuan, reflecting higher sales on credit[17] - Prepayments rose to 10,465,889.27 yuan from 7,421,579.45 yuan, indicating increased advance payments for goods or services[17] - Other receivables surged to 131,175.94 yuan from 13,316.77 yuan, showing a significant increase in miscellaneous receivables[17] Capital Expenditures and Investments - Construction in progress increased by 1,028.72% to 44,838,600.45 yuan due to increased investment in fundraising projects[7] - The company's capital expenditure in construction in progress increased to 44,838,600.45 yuan from 3,972,514.80 yuan, reflecting ongoing investments in infrastructure[17] Shareholder and Equity Information - The total number of ordinary shares remains unchanged at 100,000,000 shares, with 100% being unrestricted shares[10] - The controlling shareholder, Jiangsu Yuanhang Times Holding Group Co., Ltd., increased its holdings by 145,100 shares, bringing its total to 37,695,350 shares, representing 37.70% of the total shares[10][11] - The top 10 shareholders collectively hold 53,088,504 shares, accounting for 53.09% of the total shares[12] - No shareholders holding more than 5% of the shares have pledged or frozen shares[13] - The company implemented a stock option incentive plan, granting 170,000 stock options to 3 incentive recipients on March 21, 2024[15] - The company canceled 787,500 stock options that were granted but not exercised under the 2023 stock option incentive plan[15] Legal and Compliance - The company has no ongoing litigation, arbitration, or significant legal disputes[14] - No major asset acquisitions, disposals, or mergers occurred during the reporting period[14] - The company has no outstanding guarantees or loans provided to external parties[14] - The company has no instances of shareholders or related parties misusing company funds or assets[14] Research and Development - Research and development expenses remained stable at 21,936,018.82 RMB, compared to 22,024,076.64 RMB in the previous year[23] - Research and development expenses for the first nine months of 2024 were 16,010,080.48 yuan, slightly up from 15,791,853.80 yuan in the same period of 2023[25] Cash Inflows and Outflows - Sales of goods and services received cash of 485,840,484.20 yuan in 2024, a decrease of 12.25% compared to 553,654,787.74 yuan in 2023[29] - Cash received from tax refunds in 2024 was 4,003,982.67 yuan, compared to none in 2023[29] - Cash received from other operating activities in 2024 was 4,391,942.60 yuan, a decrease of 47.39% compared to 8,348,684.46 yuan in 2023[29] - Total cash inflows from operating activities in 2024 were 494,236,409.47 yuan, a decrease of 12.06% compared to 562,003,472.20 yuan in 2023[29] - Cash paid for goods and services in 2024 was 431,298,304.75 yuan, a decrease of 23.51% compared to 563,802,770.02 yuan in 2023[29] - Cash paid to employees in 2024 was 31,433,498.56 yuan, a decrease of 1.53% compared to 31,920,597.29 yuan in 2023[29] Non-Recurring Items - Non-recurring gains and losses amounted to 6,274,235.32 yuan, including government subsidies and investment gains[9]

Financial Performance - Gross margin increased in the first half of 2024 due to higher production and sales volume, which diluted manufacturing costs and reflected economies of scale [4] - Average price of electrolytic nickel, a key raw material, decreased by over 25% year-on-year, contributing to the gross margin improvement [4] - Nickel prices rose from the beginning to the end of the period, and some inventory materials were priced lower than market prices at the time of customer orders, further boosting gross margin [4] Market Position and Growth Prospects - The company holds over 50% market share in the nickel-based conductor materials industry [4] - Nickel-based conductor materials are expected to see expanded applications due to their properties such as oxidation resistance, corrosion resistance, weldability, and good conductivity [4] - The growth of secondary battery usage scenarios is anticipated to drive further development in the nickel-based conductor materials sector [4] Accounts Receivable Management - Accounts receivable increased compared to the previous year-end, primarily due to higher sales in the second quarter of 2024 [5] - The company has established a comprehensive internal control system for accounts receivable management, including pre-event, in-process, and post-event controls [5] - A dedicated risk assessment team evaluates customer credit terms and amounts, conducts regular or ad-hoc meetings to analyze repayment status, and performs monthly reconciliations and follow-ups with customers [5]

SNANC 远航精密 2024年半年度报告 证券简称: 远航精密 证券代码：833914 HTT 江苏远航精密合金科技股份有限公司 Jiangsu Sinonic Precision Alloy Technology Co., Ltd. 公司半年度大事记 2024 年 6 月，公司完成了 2023 年年度权益分派，以公司股权登记日应分配股数 99,000,000 股为基数（应分配总股数等于股权登记总股本 100,000,000 股减去回购的股 份 1,000,000 股，根据《公司法》等规定，公司持有的本公司股份不得分配利润），向 参与分配的股东每 10 股派发人民币现金 1.00 元，共计派发现金红利 9,900,000.00 元。 报告期内，公司获得国家知识产权局授权发明专利 1 项。截至本半年报披露日，公 司共拥有发明专利及实用新型专利 90 项，其中发明专利 12 项。 2 目 | --- | --- | |--------|----------------------------------------------------------------------------------------- ...

Investment Rating - The report gives a "Recommend" rating for the company, citing its strong competitive advantage in the nickel strip and foil sector and the potential for further optimization of its product structure [1][37] Core Views - The company specializes in the R&D, production, and sales of precision nickel-based conductor materials, with main products including nickel strips, foils, and precision structural components [1][16] - The company's performance is under short-term pressure due to the decline in nickel prices, with a 45% drop in nickel prices from the beginning to the end of 2023 [1][22] - The company's revenue for 2023 was RMB 810 million, with a net profit of RMB 32 million, and a gross margin of 10.42% [1][22] - The company's R&D expenses in 2023 were RMB 29.52 million, with an R&D expense ratio of 3.65%, which has remained stable over the past three years [1][26] - The company's projects, such as the "Annual Production of 2,500 Tons of Precision Nickel Strip Materials" and "Annual Production of 835 Million Precision Alloy Stamping Parts," aim to enhance automation and product quality [1][36] Business Structure - The company was established in 2006 and is a high-tech enterprise specializing in precision nickel-based conductor materials [1][16] - Its main products, nickel strips and foils, are widely used in consumer electronics, new energy vehicles, and power tools, while precision structural components are used in battery modules and PACK accessories [1][16] - The company has established stable partnerships with well-known companies such as Panasonic, LG, and Tesla [16] Financial Analysis - The company's revenue for Q1 2024 was RMB 171.88 million, with a net profit of RMB 11.97 million, a gross margin of 14.70%, and a net profit margin of 6.96% [1][22] - The company's revenue for 2023 was RMB 810 million, a decrease of 10.59% year-on-year, with a net profit of RMB 32 million, a decrease of 40.87% year-on-year [1][22] - The company's gross margin for 2023 was 10.42%, and it is expected to remain stable in the coming years [5][37] Industry and Project Analysis - The precision conductor materials industry is evolving towards finer, lighter, and more cost-effective products, with increasing automation [1][32] - The company's projects aim to enhance automation and reduce the gap with international brands [1][36] - The company's precision structural components are expected to see revenue growth, with projected revenues of RMB 158 million, RMB 178 million, and RMB 200 million for 2024-2026 [37] Profit Forecast and Investment Rating - The company's revenue is expected to grow to RMB 816 million, RMB 902 million, and RMB 1.006 billion for 2024-2026, with net profits of RMB 32 million, RMB 36 million, and RMB 40 million, respectively [1][37] - The company's PE ratio is expected to be 24x, 21x, and 19x for 2024-2026 [1][37] - The company's vertical integration and competitive advantage in the nickel strip and foil sector are key factors supporting the "Recommend" rating [1][37]