Xingqiu Graphite(688633) 天风证券·2024-04-24 06:30Investment Rating - The report assigns a "Buy" rating for the company with a target price of 33.8 CNY, based on a projected PE of 16 times for 2024 [24][23]. Core Insights - The company specializes in the research and deep application of graphite materials, with core products including synthetic furnaces, heat exchangers, and towers, primarily used in industries such as chlor-alkali, polysilicon, organic silicon, and pharmaceuticals [2][22]. - The company has established itself as a leading manufacturer of graphite specialized equipment in China, recognized as a national "little giant" and a champion in manufacturing [2][22]. - The company has a strong market position, with its synthetic furnace holding the largest market share in China from 2017 to 2021, and has recently expanded its global footprint with a significant contract in India [2][22][31]. Company Overview - The company has been operational for over 20 years and focuses on "smart manufacturing + deep service" as its development goal [2][22]. - It has achieved a stable revenue growth, with a net profit margin consistently above 20% [37][66]. - The company has a concentrated ownership structure, with the controlling shareholders being closely related [36][50]. Product and Market Analysis - The main products include synthetic furnaces, heat exchangers, and towers, which are critical in various production processes [11][42]. - The synthetic furnace market is expected to grow significantly, with projections indicating a market size of 3 billion CNY by 2027 for chlorohydric acid production [26][22]. - The company’s revenue is primarily derived from the chlor-alkali industry, which accounted for over 62% of its income from 2017 to 2020 [60][59]. Financial Performance - The company’s revenue is projected to grow from 770.76 million CNY in 2023 to 1.36 billion CNY by 2025, with net profits expected to increase from 143.55 million CNY to 310.35 million CNY in the same period [25][23]. - The company maintains a gross margin around 40%, with a slight decline in net margin due to strategic adjustments and raw material price increases [66][66]. Strategic Development - The company is transitioning from a single graphite equipment manufacturer to a comprehensive service provider, enhancing its capabilities in raw material technology and service integration [22][23]. - Future growth is anticipated through the expansion into new markets and applications, supported by ongoing product development and strategic partnerships [31][62].