新股覆盖研究：金天钛业

Investment Rating - The report does not explicitly mention an investment rating for the company [1] Core Views - The company, Jintai Titanium (688750 SH), is a leading supplier of high-end titanium and titanium alloy materials in China, primarily serving the military aviation sector [1][23] - The company is expected to benefit from the increasing demand driven by China's ongoing military aviation development, with a 23 59% CAGR in aerospace titanium material sales from 2019 to 2023 [1][23] - The company is expanding its business into the civil aviation sector and has achieved mass production for some clients, with ongoing certification processes for others [1][24] - The company is also extending its product line to include ship components, achieving domestic substitution for certain high-pressure gas bottles used in ships [1][25] Financial Performance - The company reported revenues of 573 million yuan, 701 million yuan, and 801 million yuan for 2021, 2022, and 2023, respectively, with YoY growth rates of 24 01%, 22 41%, and 14 31% [1][4] - Net profits for the same periods were 95 million yuan, 132 6 million yuan, and 147 2 million yuan, with YoY growth rates of 275 49%, 39 53%, and 11 08% [1][4] - In H1 2024, the company achieved revenues of 409 million yuan, a 0 95% YoY increase, and a net profit of 81 million yuan, a 17 22% YoY increase [1][10] - The company forecasts a net profit of 110-125 million yuan for the first nine months of 2024, representing a YoY growth of 16 03%-31 86% [1][10] Industry Overview - The titanium and titanium alloy industry is a strategic sector in China, with applications in aerospace, marine, and military fields [16][21] - China's titanium material production reached 159,100 tons in 2023, with a CAGR of 20 58% from 2019 to 2023 [21] - The aerospace sector is the second-largest consumer of titanium materials, accounting for 19 79% of total consumption in 2023 [21] - The demand for titanium materials in aerospace and marine sectors has grown rapidly, with a CAGR of 23 24% from 2019 to 2023 [21] Company Highlights - The company holds a 6 24% market share in China's aerospace titanium alloy materials market, primarily serving military aviation [1][23] - It supplies products to major military groups such as Aviation Industry Corporation of China, China Aerospace Science and Technology Corporation, and China Shipbuilding Industry Corporation [1][23] - The company has achieved significant market shares in key clients, including a 70-90% supply share for certain products in Triangle Defense [1][23] - The company is expanding into civil aviation, with ongoing certification processes for supplying China's domestically produced large aircraft C919 and regional jet ARJ21 [1][24] Peer Comparison - The company's revenue in H1 2024 was 409 million yuan, lower than the industry average of 2 875 billion yuan, but its gross margin of 36 33% was higher than the industry average of 26 40% [28][29] - Comparable companies include Baoti Group and Western Superconducting, with average PE-TTM of 35 04X and gross margins of 26 40% [28][29] IPO and Fund Utilization - The company plans to use IPO funds for an advanced titanium alloy project and working capital [26][27] - The advanced titanium alloy project, with a total investment of 744 5968 million yuan, aims to produce 2,800 tons of titanium alloy rods and 200 tons of titanium alloy billets annually [27]