YINGLIU(603308) 东吴证券·2025-03-18 04:25Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Views - The company is a leader in the high-end casting sector, with its "two-machine" business model creating new growth drivers. It has established itself as a supplier of high-end components for major global clients in the gas turbine and aerospace engine sectors [8]. - The company's revenue has shown steady growth, with a compound annual growth rate (CAGR) of 9.8% from 2017 to 2023, increasing from 1.38 billion to 2.41 billion yuan. The net profit attributable to shareholders has grown at a CAGR of 31.0% during the same period [8][26]. - The report highlights the company's strong positioning in the nuclear power sector, with a significant increase in revenue from this segment, which reached 380 million yuan in 2023, up 17% year-on-year [8]. Summary by Sections 1. High-End Casting Sector and "Two-Machine" Business - The company has expanded from casting to high-end components, establishing a strong foothold in high-temperature alloys and precision equipment, serving industries such as oil and gas, engineering machinery, and defense [16]. - The "two-machine" business, which includes aerospace engines and gas turbines, accounted for 33% of total revenue in 2023, showcasing the company's commitment to high-tech manufacturing [18][20]. 2. Traditional Business Stability - The traditional business, which focuses on high-end equipment components, has maintained stable revenue around 1.2 billion yuan from 2020 to 2023, with a gross margin of 30.8% in 2023 [44][48]. - The company has a diverse client base across various sectors, including oil and gas, engineering, and medical equipment, ensuring steady demand for its products [44]. 3. "Two-Machine" Business Growth - The gas turbine segment is highlighted as a key area for growth, with the company collaborating with international leaders like GE and Siemens to localize production of critical components [8][52]. - The aerospace engine segment is also expected to benefit from the ongoing push for domestic production, with the company having acquired advanced technologies to enhance its capabilities [8][52]. 4. Nuclear Power Sector Growth - The report notes a resurgence in nuclear power approvals in China, with the company positioned as a key supplier of nuclear components, achieving a revenue of 380 million yuan in this sector in 2023 [8][4]. - The company is actively investing in its nuclear materials business to meet the growing demand for clean energy solutions [8]. 5. Profitability and Investment Outlook - The company's net profit is projected to reach 360 million, 460 million, and 585 million yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 37, 29, and 23 times [1][8]. - The report emphasizes the company's focus on high-value projects, including advanced materials and intelligent manufacturing systems, to enhance its competitive edge [42].