Baimtec Material (SH:688563)2024-10-12 13:07Investment Rating - The report gives a "Buy" rating for the company [2][4]. Core Views - The company is a leading supplier of aerospace new materials and the only listed platform under the Aviation Materials Institute, with good potential for industry chain extension [9][11]. - The company has significant technical advantages in titanium alloy casting, with titanium usage in foreign 3rd generation fighter jets accounting for 20%-25% of total structural weight, and up to 41% for the F-22 [9][11]. - The high-temperature alloy market is expected to reach 34.2 billion yuan by 2026, driven by both military and civilian demand, with the company being the only domestic producer of high-temperature mother alloys for aviation [9][11]. - The rubber and sealing components are widely used across various aircraft models, with significant quantities required for each fighter jet and large passenger aircraft [9][11]. - The transparent components for military products are evolving, leading to increased value, while the civil aviation business shows considerable elasticity [9][11]. Summary by Sections Company Overview - The company was formed through the restructuring of assets from the Aviation Materials Institute and focuses on the R&D, production, and sales of aerospace components and materials [9][11][15]. - It operates through independent divisions, each responsible for procurement, R&D, production, and sales, covering a wide range of applications [15][20]. Titanium Alloy Products - The titanium alloy precision casting division is a leading domestic and internationally recognized production base, supplying major global aerospace manufacturers [16][19]. - The domestic market for titanium in aerospace is still underdeveloped, with significant growth potential [40][42]. High-Temperature Alloys - The high-temperature alloy division is a key player in the production of various high-temperature mother alloys, with a comprehensive R&D and manufacturing system [24][25]. - The demand for high-temperature alloys is expected to surge due to the increasing need for domestic aviation engines and international aerospace products [24][25]. Rubber and Sealing Materials - The rubber and sealing materials division specializes in various rubber products and sealing agents, achieving advanced levels in both domestic and international markets [20][21]. - The lifecycle of rubber and sealing components in aircraft necessitates frequent replacements, driving business growth [20][21]. Transparent Components - The transparent components division has a strong competitive advantage in producing cockpit canopies and other transparent parts for military aircraft, with plans to break international monopolies in civil aviation [28][29]. Financial Performance - The company achieved a revenue of 2.803 billion yuan in 2023, a year-on-year increase of 20.01%, and a net profit of 576 million yuan, up 30.23% [30][31]. - The company’s revenue is primarily driven by domestic operations, with international business showing recovery potential as the global civil aviation market rebounds [30][31][36].