Zhongtai Cryogenic(300435) 申万宏源·2024-05-30 12:31Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage in this regard [6][8]. Core Insights - The company has established itself as a benchmark enterprise in the cryogenic technology equipment sector, focusing on technological research and development. Its main products are applied in the energy and chemical sectors, with a growing global customer base. In 2023, the company reported a revenue of 3.047 billion yuan and a net profit of 350 million yuan, reflecting a year-on-year growth of 19.36% [6][79]. - The company has a robust order backlog, which has increased from 929 million yuan in 2015 to 2.133 billion yuan in 2023, representing a compound annual growth rate (CAGR) of 23.10% [6][79]. - The company holds 70 patents, including 27 invention patents, and is actively pursuing additional patents, indicating a strong technological reserve to adapt to market changes [6][75]. Summary by Sections 1. Business Overview - The company specializes in cryogenic technology equipment, with a significant focus on the chemical energy sector. It has expanded its operations globally, exporting products to 46 countries and regions [37][53]. - The revenue from cryogenic technology equipment and gas operation constitutes the majority of the company's income, with gas operation revenue rapidly increasing since 2019 [78]. 2. Financial Performance - The company’s total revenue has grown from 1.034 billion yuan in 2019 to 3.047 billion yuan in 2023, with a stable increase in net profit, achieving a CAGR of 46.01% [78][79]. - The gross margin for cryogenic equipment improved significantly from 29.65% in 2022 to 36.30% in 2023 due to international sales [83]. 3. Profit Forecast and Valuation - The forecasted net profits for 2024, 2025, and 2026 are 447 million yuan, 608 million yuan, and 708 million yuan, respectively, with corresponding earnings per share (EPS) of 1.17 yuan, 1.59 yuan, and 1.85 yuan [7][8]. - The company is expected to maintain a gross margin of over 37% in the cryogenic equipment sector, with revenue growth rates projected between 30% and 40% [28][29]. 4. Growth Drivers - The company is poised to benefit from the increasing demand for cryogenic technology and gas operations, particularly in the context of carbon neutrality initiatives and the growth of the semiconductor industry [18][29]. - The gas operation segment is expected to contribute stable revenue and cash flow, while the cryogenic equipment segment is anticipated to see significant growth due to its established market position and technological advantages [29][28].