Chujiang New Material (002171): performance increased by 274% in advance: 311% slightly exceeded the expected performance of new materials

The company released the 2023 annual performance forecast: it is estimated that the net profit attributable to the parent company will be 500 million to 550 million yuan in 2023, with a year-on-year increase of 274.06% to 311.47%, and the net profit not attributable to the parent company will be 380 million to 430 million yuan, with a year-on-year increase of 698.56% to 777.31%.

    The median performance slightly exceeded expectations, and the 23Q4 month on month performance improved significantly. It is estimated that the median of the net profit attributable to the parent company in 2023 will be 525 million yuan, slightly higher than our previous forecast of 501 million yuan. It is estimated that in 23Q4, the net profit attributable to the parent company will be RMB 155-205 million, with a year-on-year increase of 360.7% - 509.6% and a month on month increase of 17.3% - 55.2%, and the non net profit deducted will be RMB 312-362 million, turning loss into profit on a year on year basis, which will be RMB -17 million in the same period of 2022, with a month on month increase of 439.8% - 526.4%.

    Copper based materials: At the end of the 14th Five Year Plan period, the production capacity is planned to be more than 1 million tons, and the product structure is high-end.

    The company plans to form a production capacity of more than 1 million tons of copper based materials by the end of the 14th Five Year Plan, including more than 400000 tons of precision copper tape, more than 500000 tons of copper conductor materials, and about 100000 tons of copper alloy wires. It will also accelerate the construction of projects such as "50000 tons of high precision copper alloy tape and foil per year" to help expand its products to high-end fields.

    Tianniao Hi tech: Jiangsu Tianniao's performance is stable, Wuhu Tianniao's production capacity is climbing, and carbon ceramic brake discs are expected to become a new growth point.

    At present, Jiangsu Tianniao has sufficient orders and stable performance. The first and second phases of the project have reached the production capacity. Wuhu Tianniao Phase I Project will be completed and put into operation at the end of 2022, and the first three quarters of 2023 will be in the stage of capacity climbing. 23H1 will achieve an operating income of 10.23 million yuan, and the production and sales of thermal field composite materials are expected to be more than 600 tons in 2023; The carbon ceramic brake disc has delivered samples and is planned to be delivered in 2023.

    Dingli Technology: With the completion and operation of the Tantalum Carbide project, the business scale and performance have rapidly improved; It will be listed on the NEEQ by the end of 2023.

    The business of new materials of Dingli Technology mainly covers two categories: high-purity graphite/carbon materials and metal based 3D printing materials and products. In terms of high-purity graphite/carbon materials, tantalum carbide industrialization project has been completed and put into operation, and high-purity carbon powder has achieved small batch production; In terms of metal based 3D printing materials and products, 3D printing structural parts have been delivered in batches. 23H1 achieved operating revenue of 240 million yuan,+45.0% year-on-year, and net profit of 41.86 million yuan,+114.9% year-on-year. On December 20, 2023, Dingli Technology was officially listed on the NEEQ, and the company holds 66.72% of the equity of Dingli Technology.

    Maintain a "highly recommended" investment rating. It is estimated that the net profit attributable to the parent company in 2023-25 will be 520.73/1003 billion yuan, corresponding to a P/E ratio of 17/12/9 times, and the investment rating of "strongly recommended" will be maintained.

    Risk warning: the price of raw materials fluctuates significantly, the progress of the commissioning project is not as expected, and the downstream demand is lower than expected.