NHPM(SH:601882) Tebon Securities·2024-01-31 16:00Investment Rating - The report gives a "Buy" rating for the company, Haitan Precision Machinery (601882.SH), indicating a positive outlook for investment [3][16]. Core Insights - Haitan Precision Machinery is a leading enterprise in high-end CNC machine tools, with a focus on product innovation and market expansion. The company has shown steady growth in revenue and profit since its listing in 2016, with a compound annual growth rate (CAGR) of 21.09% in revenue and 42.08% in net profit from 2016 to 2022 [1][45]. - The CNC machine tool industry is strategically important in China, with significant government support for domestic production. The market for high-end machine tools in China is expected to grow, driven by increasing demand and investment in manufacturing [2][69]. - The company has successfully expanded its overseas market presence, with overseas revenue growing from 0.32 billion to 3.37 billion yuan from 2016 to 2022, achieving a CAGR of 48.45% [17][64]. Summary by Sections Company Overview - Haitan Precision Machinery has been dedicated to the high-end CNC machine tool industry for over 20 years, establishing a strong technical advantage. The company offers a wide range of products, including CNC gantry machining centers, CNC vertical machining centers, and CNC lathes, which are widely used in various industries such as automotive, aerospace, and machinery [1][15][38]. Financial Analysis - The company has demonstrated a robust financial performance, with total revenue increasing from 1.008 billion yuan in 2016 to 3.177 billion yuan in 2022. The net profit rose from 63 million yuan to 521 million yuan during the same period. For the first three quarters of 2023, the company reported a revenue of 2.507 billion yuan, reflecting a year-on-year growth of 5.95% [1][45][72]. Industry Analysis - The CNC machine tool industry is crucial for national security and self-sufficiency, with China being the largest producer and consumer of machine tools globally. The domestic market for high-end machine tools is expected to grow significantly, supported by government policies aimed at enhancing local production capabilities [2][69][86]. Competitive Advantages - Haitan Precision Machinery has several competitive advantages, including a comprehensive product range, strong sales and service capabilities, and significant investment in research and development. The company has maintained a high gross margin, with overseas operations yielding a gross margin of 35.95% compared to 26.26% for domestic operations [17][18][61].