JIULI Hi-tech(002318) 国投证券·2024-07-28 23:00Investment Rating - The report assigns a "Buy-A" investment rating to the company with a target price of 23.10 CNY for the next six months [4][5]. Core Insights - The company, Jiu Li Special Materials, is a leading player in the domestic industrial stainless steel and special alloy materials sector, with over 30 years of industry experience and a strong focus on technological innovation and market expansion [1][2]. - The company has a diverse product line that includes seamless pipes, welded pipes, fittings, and composite pipes, which are widely used in critical industries such as oil, gas, electricity, and chemicals [2][3]. - Jiu Li Special Materials has made significant advancements in the nuclear power materials sector, being one of the few domestic companies qualified to produce U-shaped tubes for steam generators, contributing to the domestic nuclear equipment's independent research and industrial upgrade [3]. Financial Projections - Revenue projections for 2024, 2025, and 2026 are 10.28 billion CNY, 11.91 billion CNY, and 13.73 billion CNY, respectively, with growth rates of 20.0%, 15.8%, and 15.3% [4][91]. - Net profit estimates for the same period are 1.50 billion CNY, 1.77 billion CNY, and 2.01 billion CNY, with growth rates of 0.9%, 18.0%, and 13.7% [4][91]. Company Overview - Jiu Li Special Materials was established in 1987 and is located in Huzhou, Zhejiang Province, focusing on the research and production of industrial stainless steel and special alloy pipes, bars, wires, and composite pipes [12][15]. - The company has established advanced production lines for seamless and welded pipes, providing high-performance and reliable products for various industries [12][15]. Market Position - The company has a strong market presence, being a trusted supplier for major domestic enterprises in the oil and gas sector, as well as international clients in over 70 countries [14][19]. - Jiu Li Special Materials has successfully expanded its influence in the international market, establishing long-term agreements with renowned global companies [14]. Product Development - The company focuses on high-end, high-value-added products, with approximately 19 billion CNY in revenue from high-tech products, accounting for about 22% of total revenue in 2023 [32][34]. - Jiu Li Special Materials is actively investing in new product lines, including nickel-based alloy oil well pipes and composite pipes, to meet the growing demand in various industrial applications [80][79]. R&D and Innovation - The company emphasizes research and development, with R&D expenses reaching 339 million CNY in 2023, representing 3.96% of total revenue [34][35]. - Jiu Li Special Materials has established a comprehensive R&D system, collaborating with various research institutions and universities to enhance its technological capabilities [35][36]. Industry Trends - The nuclear power sector is experiencing accelerated development, with increasing global interest in low-carbon energy sources, positioning Jiu Li Special Materials favorably for future growth [47][50]. - The oil and gas industry is recovering, with significant capital expenditures expected, which will drive demand for high-performance oil well pipes [74][78]. Conclusion - Jiu Li Special Materials is well-positioned for growth in the industrial stainless steel and special alloy materials market, supported by strong financial projections, a diverse product portfolio, and a commitment to innovation and R&D [4][91].