BAOTI(600456) Soochow Securities·2024-10-30 00:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's production and sales are steadily approaching operational targets, with downstream demand expected to recover within the year, supporting overall performance [1] - The export business is performing well, particularly in the aviation sector, which is contributing significantly to growth [2] - Frequent mergers and acquisitions are enhancing the overall forging and processing capabilities of the company [3] - The earnings forecast remains in line with expectations, with projected net profits for 2024-2026 being 6.56 billion, 7.99 billion, and 9.46 billion respectively, corresponding to P/E ratios of 22, 18, and 16 [3] Summary by Sections Financial Performance - In the first three quarters of 2024, the company achieved total revenue of 5.509 billion, a year-on-year decrease of 1.83%, and a net profit attributable to shareholders of 517 million, down 5.97% year-on-year [1] - The production volume of titanium products reached 25,653.39 tons, an increase of 6.40% year-on-year, while sales volume was 26,390.30 tons, up 8.96% year-on-year [1] Business Development - The company has successfully entered the supplier systems of Boeing and Airbus, with expectations for continued growth in the export market [2] - The domestic demand for titanium materials is supported by the ramp-up of the C919 aircraft, contributing to a recovery in performance [2] Mergers and Acquisitions - The company announced two acquisitions aimed at enhancing its forging capabilities, including land use rights and assets from local titanium companies [3] - These acquisitions are expected to increase intermediate billet hot processing capacity by over 15,000 tons and reduce rental costs by 15.5577 million per year [3]