NBTM(SH:600114) Tianfeng Securities·2024-05-20 06:07Investment Rating - The report assigns a positive investment rating to the company, indicating strong growth potential in the powder metallurgy sector [34]. Core Viewpoints - The company is a leading player in the domestic powder metallurgy industry, with three main business segments: P&S (Powder Metallurgy Pressing and Sintering), MIM (Metal Injection Molding), and SMC (Soft Magnetic Composite Materials) [34][38]. - The MIM segment is expected to benefit significantly from the growing demand for foldable smartphones, with projections indicating a substantial increase in market penetration and sales volume in the coming years [13][16]. - The SMC segment has shown rapid growth, driven by the expansion of applications in renewable energy and electric vehicles, with a projected compound annual growth rate (CAGR) of 49% from 2020 to 2023 [51][56]. Financial Data and Valuation - Revenue is projected to grow from 3,726.34 million CNY in 2022 to 6,848.98 million CNY by 2026, reflecting a compound annual growth rate (CAGR) of approximately 17.57% [2]. - The net profit attributable to the parent company is expected to increase from 155.74 million CNY in 2022 to 545.55 million CNY in 2026, with a notable growth rate of 503.17% in 2022 [2]. - The company's earnings per share (EPS) is forecasted to rise from 0.25 CNY in 2022 to 0.89 CNY in 2026, indicating strong profitability growth [2]. Business Segments Overview - The P&S segment remains the primary contributor to revenue and profit, accounting for 51% of total revenue in 2023, while the SMC segment is rapidly growing, contributing 26% [38]. - The MIM segment, although facing temporary challenges due to market conditions, is expected to recover as the demand for consumer electronics stabilizes [38]. - The company has successfully integrated its supply chain by acquiring upstream suppliers, enhancing its competitive edge in the SMC segment [50][56]. Market Trends - The MIM market in China is steadily growing, with a total powder usage reaching 12,000 tons in 2020, a 20% increase year-on-year [9]. - The demand for soft magnetic materials is expected to rise significantly due to the increasing adoption of renewable energy technologies and electric vehicles, with the global market projected to grow from 710 million USD in 2022 to 2.1 billion USD by 2029 [67]. - The company is well-positioned to capitalize on the trends in the foldable smartphone market, with expectations of global shipments exceeding 100 million units by 2027 [13][16].