Baimtec Material (SH:688563)2024-10-16 06:36Investment 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 Research Institute, with good potential for industry chain extension [9][11]. - The company has significant advantages in titanium alloy casting technology, with domestic demand for titanium in aerospace still having a large gap compared to global levels [9][40]. - 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 [9][30]. - The rubber and sealing products are widely used across various aircraft models, with significant demand for replacements during the lifecycle of aircraft and engines [9][20]. - The transparent components for military products are evolving, leading to increased value, while the civil aviation business shows considerable elasticity [9][28]. Summary by Sections Company Overview - The company was formed through the restructuring of assets from the Aviation Materials Research Institute and focuses on the R&D, production, and sales of aerospace components and materials [9][11]. - It operates through independent divisions, each responsible for procurement, R&D, production, and sales, covering a wide range of applications in aerospace and other industries [15]. 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 production system [24][25]. - The demand for high-temperature alloys is expected to surge due to the increasing need for domestic aerospace engines [30]. 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 replacement demand for rubber products in aircraft and engines drives rapid business growth [9][20]. Transparent Components - The transparent components division is responsible for producing cockpit canopies and other transparent materials, with a strong market position in military applications [28][29]. - The company aims to break the international monopoly in the civil aviation market for transparent components [9][28]. Financial Performance - The company achieved a revenue of 2.803 billion yuan in 2023, with a year-on-year growth of 20.01%, and a net profit of 576 million yuan, up 30.23% [30][31]. - The revenue from domestic operations dominates, accounting for over 90% of total revenue, with stable growth expected in international markets as they recover [30][31].