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]
远航精密首次覆盖报告：深耕精密镍基导体材料，产品结构持续优化