Baimtec Material (SH:688563) Guotou Securities·2025-09-01 12:34Investment Rating - The report assigns a "Buy-A" investment rating to the company with a 12-month target price of 63.6 CNY [6]. Core Views - The company reported a revenue of 1.36 billion CNY in H1 2025, a decrease of 9.87% year-on-year, with a net profit of 280 million CNY, also down by 9.92% [1]. - The decline in revenue is attributed to reduced income from aviation and non-aviation finished products, as well as changes in product sales structure [1]. - The company has signed contracts worth over 1.56 billion CNY, indicating potential demand recovery in the downstream market [2]. - The acquisition of high-temperature alloy intellectual property and the planned purchase of equipment to enhance production capacity are expected to strengthen the company's competitive position [3]. Financial Performance - The company's basic materials business saw a revenue increase of 6.22% year-on-year, with a gross margin of 34.39%, up by 10.75 percentage points [1]. - The gross margin for the overall company in H1 2025 was 31.3%, an increase of 1.86 percentage points year-on-year, while the net profit margin was 20.59%, a slight decrease of 0.02 percentage points [1]. - Forecasted net profits for 2025, 2026, and 2027 are expected to be 613 million CNY, 716 million CNY, and 852 million CNY, respectively, with growth rates of 5.4%, 16.8%, and 19% [4]. Market Position and Comparables - The company is positioned as a leader in the aerospace materials sector, with ongoing asset integration and research collaboration advantages [4]. - Comparable companies in the sector include Steel Research High-Tech, Huayin Technology, and Tunan Co., with average PE ratios of 44 and 34 for 2025 and 2026, respectively [4]. Contractual Obligations - The company has a significant amount of unfulfilled contractual obligations, with 1.56 billion CNY expected to be recognized as revenue in 2025 and 639 million CNY in 2026 [2].