ozwincasinonodepositbonus2022| Leader of powder metallurgy new materials: Estimated net profit from 2024-2026 will be 3.58/4.50/5.46 million yuan

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Leading enterprises in China's powder metallurgy industryOzwincasinonodepositbonus2022, the layout of the three major businesses of Packers, MIM and SMC, and the performance increased significantly. Focus on folding screen mobile phone hinges, the market space is expected to reach 257 by 2027Ozwincasinonodepositbonus202280 million yuan. The capacity of SMC expands rapidly and the advantages of industrial chain integration are demonstrated. It is estimated that the net profit from 2024 to 2026 is 358 million yuan, 450 million yuan and 546 million yuan respectively. For the first time, coverage gives an "overweight" rating.

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As a leader in the new materials industry of powder metallurgy in China, through endogenous growth and external expansion, the company has successfully built three business segments: packs (Powder Metallurgy pressing Molding), MIM (Metal injection Molding) and SMC (soft Magnetic Composites), forming a diversified powder metallurgy platform enterprise with coordinated development, showing its platform advantages.

In 2023, global and Chinese folding screen mobile phone shipments showed a strong growth trend, and domestic shipments increased by more than 100% year-on-year for four consecutive years. Technological breakthroughs, falling prices and the cyclical reversal of the consumer electronics market have promoted the development of the folding screen mobile phone market. It is predicted that the global market space for folding screen mobile phone hinges will reach 25.78 billion yuan in 2027, while the market space for MIM parts is expected to increase to 7.73 billion yuan. With its leading position in the industry and access to Huawei's supply chain system, the company is expected to fully enjoy the market growth dividend. In addition, Shanghai Fuchi, a subsidiary of the company, has won the capital increase of Yuanzhi Spark controlled by Shenzhen SASAC, which is expected to strengthen the integration of resources and improve the competitiveness of MIM products.

In the field of soft magnetic composites (SMC), the company strengthens its production capacity expansion and actively expands its market share. Since 2021, the company has established the priority development status of SMC plate, and it is expected that the future production capacity will reach 106000 tons. At present, the first phase of the 60,000-ton project in Shanxi Base has been completed and trial-produced. Through the acquisition of Deqing Xinchen in 2022, the company's industrial chain extends upstream to ensure the supply of raw materials. at the same time, the products are widely used in optical storage, new energy and other fields, and the revenue is expected to be 69 million yuan in 2023, showing a broad space for growth.

The company's packs business ranks first in the domestic market share, and its brand effect promotes import substitution and global market expansion in the field of automotive powder metallurgy products, while benefiting from the upgrading needs of the home appliance industry. Since 2022, the company has acquired a cumulative 22% stake in Xiaoxiang Electric and used powder metallurgy technology to provide soft magnetic parts, showing the unique advantages of P&S+SMC technology platform, which will help to strengthen the technical research of motor and non-automotive powder metallurgy applications, expand the application of high-end manufacturing fields, and bring performance growth for the company.

Based on the company's outstanding performance in the three major business sectors, the net profit from 2024 to 2026 is expected to reach 358 million yuan, 450 million yuan and 546 million yuan respectively. Taking into account the company's leading position in the industry and future growth potential, the company is valued at 28 times earnings in 2024, with a target share price of 16.3 yuan per share, covering the "overweight" rating for the first time.

Investors should pay attention to the investment risks that may be caused by factors such as lower-than-expected market demand, fluctuation of raw material prices, production technology risk, project construction schedule, exchange rate risk and subjective measurement.