YINGLIU(SH:603308) Huachuang Securities·2025-06-10 00:25Investment Rating - The report gives a "Recommended" rating for the company, marking its first coverage [5]. Core Views - The company has significant advantages in the aerospace and nuclear energy sectors, with low-altitude economy seen as a growth option [7]. - The company is positioned well in the "two machines" (aerospace engines and gas turbines) and "two industries" (nuclear and aviation) sectors, with a strong competitive edge and substantial market potential [7]. Summary by Sections Company Overview - The company is a leading manufacturer of specialized equipment parts, focusing on high-temperature alloy products, precision cast steel components, and nuclear energy products [14]. - In 2024, high-temperature alloy products and precision cast steel components contributed 59% of revenue and 63% of gross profit, making it the largest business segment [17]. Aerospace Engine Business - The company’s products are recognized by international giants, and it is expected to benefit from an increase in domestic production rates [50]. - The global market for civil aviation engines is projected to grow significantly, with the company positioned to capture a share of this expanding market [52]. Gas Turbine Business - The company is one of the global suppliers for gas turbines and is expected to benefit from the transition to low-carbon energy and the demand from AI data centers [10]. - In 2024, the company anticipates a 102.8% year-on-year increase in orders for gas turbine products [10]. Nuclear Energy Materials and Components - The domestic nuclear power market has substantial potential, with the company being a pioneer in producing key components for nuclear power plants [10]. - The company supplies nuclear products to 10 of the 31 nuclear units currently under construction in China, achieving over 30% market participation [10]. Convertible Bond Projects - The company plans to issue 1.5 billion yuan in convertible bonds, with significant portions allocated to enhancing its "two machines" and nuclear energy business value chains [10]. - The projected annual revenue from these projects during the ramp-up phase is estimated to be between 1.036 billion and 1.816 billion yuan, with net profits expected to range from 132 million to 284 million yuan [10]. Low-Altitude Economy - The company is strategically positioned in the low-altitude economy, covering advanced manufacturing to operational services [10]. - It has established a full industrial chain in aviation, including core components, power systems, and complete aircraft manufacturing [10]. Financial Projections - The company forecasts net profits of 400 million, 530 million, and 740 million yuan for 2025, 2026, and 2027, respectively, with corresponding year-on-year growth rates of 40%, 32%, and 39% [5]. - The expected earnings per share (EPS) for the same years are projected to be 0.59, 0.78, and 1.08 yuan, with price-to-earnings (PE) ratios of 37, 28, and 20 times [5].