Investment Rating - The report assigns a "Buy" rating to the company with a target price of 63.87 CNY per share based on a 40x PE valuation for 2024 [3][32]. Core Views - The company has successfully completed its annual targets with steady growth in operating performance, achieving a revenue of 2.803 billion CNY in 2023, a year-on-year increase of 20.01%, and a net profit of 576 million CNY, up 30.23% year-on-year [1][7]. - The company is a leading player in the domestic aviation materials sector, with four business divisions that are all in a leading position domestically, supported by a strong R&D platform [1][26]. - The military products are expected to benefit from the new equipment installations and maintenance during the 14th Five-Year Plan, while civilian products will benefit from accelerated domestic substitution [1][26]. - The company’s profitability is anticipated to improve further as its fundraising projects reach production capacity, benefiting from economies of scale and learning curve effects [1][26]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 2.803 billion CNY, with a year-on-year growth of 20.01%. The net profit reached 576 million CNY, reflecting a 30.23% increase [1][7]. - The company’s gross margin was 31.55%, slightly down by 2.24 percentage points, primarily due to changes in military product tax policies [8][14]. Business Segments - The company operates four main divisions: titanium alloy precision casting, rubber and sealing materials, aircraft cabin transparent components, and high-temperature alloy casting, all of which are leading in their respective fields [1][7]. - Revenue from the basic materials segment was 1.323 billion CNY, up 19.79%, while revenue from aviation finished products was 1.238 billion CNY, up 23.87% [7][30]. Future Projections - The company expects revenues of 3.488 billion CNY, 4.273 billion CNY, and 5.090 billion CNY for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 24.43%, 22.52%, and 19.12% [27][28]. - EPS is projected to be 1.60 CNY, 1.96 CNY, and 2.34 CNY for 2024, 2025, and 2026, respectively [27][28]. Market Position - The company is positioned as a core supplier in the aviation materials industry, benefiting from strong demand in both military and civilian sectors due to ongoing modernization and domestic substitution trends [1][20]. - The domestic aviation materials market has high entry barriers, with stringent quality and certification requirements, which protects established players like the company from new entrants [25][26].
经营业绩稳步提升,材料龙头景气可期