Jiangsu Boqian New Materials Stock (SH:605376) Minsheng Securities·2024-10-28 06:01Investment Rating - The report maintains a "Recommended" rating for the company [2][4]. Core Views - The company reported a significant increase in revenue and net profit for the first three quarters of 2024, with revenue reaching 727 million yuan, up 47.96% year-on-year, and net profit of 85 million yuan, up 562.41% year-on-year [2]. - The demand for the company's products, particularly nickel powder and copper powder, has rebounded due to the recovery in the consumer electronics market driven by AI [2]. - The company is expected to benefit from the ongoing AI wave, which is anticipated to drive a new growth cycle in the electronics industry [2]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 727 million yuan, with a year-on-year growth of 47.96% [2]. - The net profit attributable to the parent company was 85 million yuan, reflecting a year-on-year increase of 562.41% [2]. - The gross margin for the first three quarters of 2024 was approximately 21.04%, an increase of 5.32 percentage points year-on-year [2]. - The company expects to achieve net profits of 130 million yuan, 195 million yuan, and 250 million yuan for the years 2024, 2025, and 2026 respectively, with corresponding PE ratios of 54, 36, and 28 times [2][5]. Product and Market Insights - The company has successfully integrated new nickel powder products into the supply chains of major overseas clients, leading to improved product structure and sales [2]. - The copper powder segment has shown significant recovery, with revenue in the first half of 2024 exceeding the total revenue for 2023, driven by improved demand from downstream electronics [2]. - The company is also developing new alloy powders for inductors, which are expected to open new growth opportunities [2].