Yangling Metron New Material (300861) Donghai Securities·2024-11-05 07:11Investment Rating - The investment rating for the company is "Buy (Maintain)" [6] Core Views - The company maintains a solid leading position in the diamond wire industry, with successful advancements in tungsten wire research and development, and a stable financial condition. The projected net profits for 2024-2026 are estimated at 476 million, 578 million, and 766 million yuan, corresponding to P/E ratios of 25.76, 21.21, and 16.00 times respectively [7] Summary by Sections Financial Performance - In the first three quarters of 2024, the company achieved operating revenue of 1.892 billion yuan, a year-on-year decrease of 43.21%. The net profit attributable to the parent company was 282 million yuan, down 79.72% year-on-year. The third quarter alone saw operating revenue of 408 million yuan, a quarter-on-quarter decline of 35.05%, with a net profit of 6 million yuan, down 92.58% quarter-on-quarter [6][10] Market Position and Product Development - The company faced dual pressure on both volume and price in the diamond wire market, with third-quarter sales volume at 26.088 million kilometers, a quarter-on-quarter decrease of 22.51%. The sales gross margin was 4.69%, and the net margin was 1.93%, with unit profit declining to 0.23 yuan per kilometer [8] - The company has made significant progress in tungsten wire production, achieving a monthly output exceeding 1 million kilometers through innovative processes including hot drawing, warm drawing, and cold drawing. This positions the company to rapidly expand tungsten wire production capacity [8][9] Technological Advancements - The introduction of diamond non-metallic coating technology and high cutting force technology has significantly enhanced the competitiveness of the company's diamond wire products. These innovations reduce costs and improve efficiency, allowing the company to capture more market share even during industry downturns [9]