kxjd(SZ:300092) Huaxin Securities·2024-04-28 09:30Investment Rating - The report assigns a "Buy" rating for the company, Kexin Electromechanical (300092.SZ), marking its first coverage [2]. Core Insights - The company has shown significant improvement in gross margin, with a notable advantage in the transportation of spent fuel containers. The gross margin increased by 9.34 percentage points to 31.32% compared to the same period last year, primarily due to the upgrade in product structure and an increase in the proportion of high-value-added products [2]. - The company is benefiting from national policies and improved profitability in downstream sectors, as it is a leading enterprise in pressure vessels in China. The Ministry of Industry and Information Technology has issued a plan to promote the renewal of industrial equipment, which will further enhance the company's market position [2]. - The company is actively participating in the design and manufacturing of spent fuel transportation containers, with a solid foundation laid for future formal orders in this segment. The restart of nuclear power project approvals has led to a significant expansion in the nuclear power industry, creating a demand for spent fuel storage and transportation [2]. Summary by Sections Financial Performance - In Q1 2024, the company achieved operating revenue of 275 million yuan, a year-on-year decrease of 28.92%, while the net profit attributable to shareholders was 48 million yuan, an increase of 5.01% year-on-year [2]. - The company forecasts revenues of 1.723 billion yuan, 2.119 billion yuan, and 2.597 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.80 yuan, 1.07 yuan, and 1.39 yuan. The current stock price corresponds to PE ratios of 12.7, 9.5, and 7.4 times for the respective years [2][16]. Market Position and Growth - The company has a robust order backlog, with contract liabilities amounting to 556 million yuan, indicating a strong demand for its products. The company is also expanding its production capacity, with a planned increase of 8,400 tons per year, expected to be operational by 2025, which will release an additional 38.53% of capacity [2]. - The company is positioned to benefit from the ongoing capital expenditure expansion in the petrochemical industry, as well as the upgrade of equipment in the chemical sector, which is supported by national guidance [2].