Core Viewpoint - The company has achieved significant breakthroughs in high-temperature alloy recycling technology and has established itself as the only domestic enterprise capable of industrializing this technology, which has been validated through engine testing [1] Group 1: Technological Advancements - The company has mastered high-temperature alloy recycling technology, leading to major advancements in both high return rate recycling of high-temperature alloys and the import substitution of key strategic materials [1] - The company has achieved import substitution for products such as GH6159, GH4141, and GH4738, with some products reaching a leading domestic and internationally advanced technical level [1] Group 2: Industry Applications - The company's products are widely used in various fields, including aerospace, gas turbines, steam turbines, nuclear engineering, and petrochemicals, contributing to the self-sufficiency of key strategic materials in the country [1] - The company is actively involved in the preliminary research of the next generation of high-temperature alloy materials, which is a key focus for national development [1]

Core Viewpoint - The company has achieved significant breakthroughs in the domestic high-temperature alloy recycling application, positioning itself as the only enterprise in China with the technology for high-temperature alloy return material recycling and has made strides in import substitution [2]. Group 1: Company Achievements - The company is the only one in China that has mastered the technology for high-temperature alloy return material recycling and has industrialized it, passing engine test assessments [2]. - The company has achieved import substitution for products such as GH6159, GH4141, and GH4738, with some high-temperature alloy grades reaching a leading domestic and advanced international level [2]. - The company's products are widely used in aerospace, gas turbines, steam turbines, nuclear engineering, and petrochemicals, contributing to the self-control of key strategic materials in the country [2]. Group 2: Industry Impact - The company has deeply participated in the preliminary research of the new generation of high-temperature alloy materials being developed in China [2].

Investment Rating - The report gives an "Accumulate" investment rating for the company [3]. Core Insights - The company is a leading enterprise in the domestic high-temperature alloy recycling technology, focusing on high-return recycling of high-temperature alloys and key strategic material import substitution [5][11]. - The company has shown significant breakthroughs in the preparation of high-temperature alloy recycling and has a strong market potential across multiple industries, including aerospace, gas turbines, and nuclear engineering [5][11]. - The company’s revenue is projected to grow from 26.57 billion yuan in 2025 to 35.60 billion yuan in 2027, with corresponding net profits of 1.19 billion yuan and 2.09 billion yuan respectively [5][6]. Financial Data and Valuation - Total revenue (in million yuan) for the years 2023 to 2027 is projected as follows: 2035, 2508, 2657, 3043, and 3560, with year-on-year growth rates of 58%, 23%, 6%, 15%, and 17% respectively [2]. - The company’s net profit for the same period is expected to be 151 million, 162 million, 119 million, 159 million, and 209 million yuan, with corresponding year-on-year growth rates of 41%, 7%, -26%, 34%, and 32% [6]. - The company’s current market capitalization is 12.6 billion yuan, with a circulating market value of 9.5 billion yuan [3]. Company Overview - The company, established in August 2007, is a key production and R&D base for high-end equipment manufacturing materials in China, focusing on high-temperature alloys and special alloy materials [11]. - The company has a diverse shareholding structure, with the main shareholder holding 15.13% of the shares [3][11]. - The company’s main products include high-temperature alloys, high-performance alloys, and high-quality special stainless steels, which are crucial for various high-end industries [17][21]. Market Demand and Growth Potential - The demand for high-temperature alloys is expected to grow significantly due to increasing defense budgets, military aircraft upgrades, and the acceleration of domestic engine replacements in the civil aviation sector [5][11]. - The aerospace sector is projected to see a rise in the number and quality of rocket launches, leading to increased demand for high-temperature alloys used in rocket engines [5][11]. - The nuclear power sector is also expected to grow rapidly due to the acceleration of nuclear power station construction and equipment exports [5][11]. Technology and Competitive Advantage - The company has developed advanced recycling technologies that significantly reduce costs and improve efficiency, achieving a quality and stability level that surpasses new materials [5][11]. - The company’s high-temperature alloy products are primarily deformation alloys, which are widely used in critical components for aerospace, nuclear engineering, and gas turbines [5][11]. - The company has established itself as a leader in the domestic market for high-temperature alloy recycling technology, with a focus on achieving high-value, high-efficiency, and high-technology recycling of strategic materials [5][11].