Investment Rating - The report maintains a "Recommend" rating for the company, indicating a positive outlook on its stock performance relative to the benchmark index [4] Core Views - The company's non-GAAP net profit grew by 33.89% YoY in the first three quarters of 2024, driven by stable nickel prices and improved profitability [1] - Revenue for the first three quarters of 2024 was RMB 607.15 million, a slight decline of 3.72% YoY, while net profit attributable to shareholders increased by 11.90% YoY to RMB 42.13 million [1] - The company's gross margin and net margin for the reporting period were 14.98% and 6.94%, respectively, with a stable overall profitability level [1] - The TCO (Thermal Cut-Off) product sales have shown consistent growth, with sales expected to double in 2024 compared to 2021, reaching RMB 100 million [2] - The company's vertical integration strategy, combining material production and product processing, provides a competitive advantage in the precision nickel-based conductor materials industry [2] Financial Performance and Projections - The company's revenue for Q3 2024 was RMB 219.46 million, a 6.41% YoY increase, with a non-GAAP net profit of RMB 11.00 million, up 38.20% YoY [1] - The company's 2024-2026 net profit attributable to shareholders is projected to be RMB 55 million, RMB 66 million, and RMB 79 million, respectively, with YoY growth rates of 75.33%, 18.99%, and 19.25% [3] - The company's PE ratios for 2024-2026 are estimated at 38x, 32x, and 27x, respectively, reflecting a gradual decline in valuation multiples [3] - The company's gross margin is expected to improve from 10.42% in 2023 to 13.90% in 2026, driven by stable nickel prices and operational efficiency [8] Business and Industry Analysis - The company's products, including nickel strips, foils, and precision structural components, are widely used in lithium batteries, consumer electronics, aerospace, and new energy vehicles [1] - The company has established a strong presence in the TCO market, supplying major lithium battery manufacturers such as Zhuhai CosMX and CATL, and serving end customers like Lenovo and Dell [2] - The company's ongoing project to produce 835 million precision alloy stamping parts annually is progressing as planned, with expected completion by mid-2025 [2] - The company's vertical integration strategy, with parent company Yuanhang Precision producing nickel strips and foils and subsidiary Jintai Ke processing these materials, enhances its competitive position in the industry [2] Market and Valuation - The company's A-share closing price on November 5, 2024, was RMB 16.20, with a total market capitalization of RMB 1.62 billion [4] - The company's PB ratios for 2024-2026 are projected at 2.31x, 2.15x, and 1.99x, respectively, indicating a gradual decline in valuation relative to book value [8] - The company's EV/EBITDA ratios for 2024-2026 are estimated at 25.10x, 21.38x, and 18.07x, reflecting a decreasing valuation relative to earnings before interest, taxes, depreciation, and amortization [8]
远航精密点评报告：镍价回归平稳，TCO销售额逐年提升