YINGLIU(603308) 东吴证券·2025-03-18 05:29Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - 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 key supplier for top global clients in the gas turbine and aerospace engine manufacturing sectors [8][10]. - 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][10]. - 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][10]. Summary by Sections 1. High-End Casting Sector and "Two-Machine" Business - The company has successfully transitioned from casting to high-end component manufacturing, establishing partnerships with leading global clients such as Emerson and Caterpillar [16]. - The "two-machine" business, which includes aerospace engines and gas turbines, has become a significant revenue driver, contributing 33% of total revenue in 2023 [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 serves a diverse range of industries, including oil and gas, engineering machinery, and medical equipment, ensuring a broad customer base [44][45]. 3. Growth in "Two-Machine" Business - The "two-machine" business has seen a remarkable CAGR of 45% from 2019 to 2023, significantly outpacing overall revenue growth [28][31]. - The company is actively involved in the domestic gas turbine localization process, collaborating with major players like GE and Siemens [8][10]. 4. Nuclear Power Sector Growth - The nuclear power sector has experienced a resurgence, with the company positioned as a key supplier of critical components for nuclear power plants, achieving a revenue of 380 million yuan in 2023 [8][10]. - The report notes a steady increase in the number of approved nuclear power units in China, indicating a favorable market environment for the company's nuclear materials business [8][10]. 5. Profitability and Investment Outlook - The company's profitability has improved significantly, with net profit projections of 360 million, 460 million, and 585 million yuan for 2024, 2025, and 2026, respectively [1][8]. - The report anticipates that the company's ongoing investments in high-end component manufacturing will enhance its competitive edge and profitability [39][42].