tides4fishing|星源卓镁(301398)：公司经营稳健 产品结构不断丰富

Event: the company releases its quarterly report of 2024Tides4fishing1Q24 achieved a total revenue of 8Tides4fishing, 234Tides4fishing.60,000 yuan (+ 2.4%), realizing the net profit of 17.661 million yuan (+ 4.3%) and deducting the non-return net profit of 17.031 million yuan (+ 8.2%). Product sales continue to increase, revenue and net profit increased compared with the same period last year. 1Q24 realized total operating income of 82.346 million yuan, year-on-year + 2.4%, net profit of 17.661 million yuan, + 4.3% year-on-year, and non-return net profit of 17.031 million yuan, + 8.2% over the same period last year. In terms of gross / net margin, 1Q24's gross margin was 31.9%, down 0.1 pct from a year earlier, and net margin was 21.4%, an increase of 0.4pct over the same period last year. We expect the company's revenue growth to mainly benefit from increased sales of automotive display system parts, automotive console parts, new energy powertrain parts and other products. In terms of the period expense rate, the sales expense rate of 1Q24 Company is 2.7% (+ 0.3pct), the management expense rate is 6.8% (+ 0.9pct), the R & D expense rate is 5.0% (+ 0.3pct), and the financial expense rate is-2.9% (- 2.0pct). The company's overall period expense rate decreased by 0.8pct compared with the same period last year. On the whole, the company made substantial progress in reducing costs and increasing efficiency, and the expense rate remained stable at a low level during the period. Continue to optimize the product structure, large and medium-sized products will become the company's potential growth pole. The large-scale application of large-scale complex magnesium alloy castings in automotive parts is one of the development directions of automotive magnesium. After more than ten years of in-depth research on magnesium alloy die-casting technology, at present, the company has successfully designed and developed magnesium alloy new energy vehicle powertrain shell, magnesium alloy external spare tire bracket, magnesium alloy display back panel, magnesium alloy automobile center console skeleton and other large and medium-sized magnesium alloy automobile parts and successfully applied, and the company's products are recognized by terminal brand manufacturers and consumers. For example, the company has successfully developed and mass-produced magnesium alloy automobile transmission shell, motor end cover and other products and applied to SAIC Zhiji platform, SAIC Chase, some series of car models. At the same time, in 2023, the company's large tonnage magnesium alloy semi-solid injection molding machine successfully reached the production of medium-and large-scale support products. At present, the proportion of large and medium-sized products of the company is increasing year by year. In the future, the company will strengthen the development of large and medium-sized products such as display backplane bracket, central control handrail and powertrain shell on the basis of existing products, so as to make large and medium-sized products as the main growth point of the company in the future. We will steadily promote the construction of fund-raising projects and speed up the production capacity market to meet business demand. The company according to the market situation, industry conditions, combined with the fund-raising project construction plan, solid and steady promotion of fund-raising project construction. The production project of high-strength magnesium alloy precision die castings will reach the scheduled state of use in June 2024. After the completion of the project, it will help to further expand the company's production capacity, enhance production capacity and optimize product structure. The high strength magnesium alloy precision die casting technology R & D center has completed the project construction and concluded the project, the company's technology R & D innovation system has been continuously improved, and the overall R & D strength has been continuously improved, anchoring for the follow-up new projects.Tides4fishingIt has a solid technical foundation. We will attach equal importance to development at home and abroad to promote the multi-point layout of the global market. In 2023, the company continues to vigorously develop new customers and new products, undertake 35 new projects, and put forward high requirements for the company's production capacity, so the company prepares production capacity in advance to meet the needs of customers. October 2023 announcement, the company made a strategic move to invest in the construction of a production base in Thailand, the establishment of a base in Thailand can better open up the international market and respond to the needs of overseas customers, improve the level of customer service, and further improve the global layout of the company. According to the announcement in November 2023, the company has contributed 1.01 billion yuan to build new production capacity through its own funds or self-raised funds, and plans to sign a "Project Investment and Construction Agreement" with the Management Committee of Fenghua Economic Development Zone. invest in the construction of an annual production capacity of 3 million sets of high-strength large magnesium alloy precision forming parts for automobiles in Fenghua Economic Development Zone. This project will help to further consolidate the company's market position in the field of automotive lightweight and new energy automotive parts, and enhance the industrial application scale of the company's magnesium alloy business in the automotive lightweight field. At present, both projects are in steady progress. Maintain the "overweight" investment rating. Benefiting from the development trend of lightweight vehicles, increasingly stringent energy saving and emission reduction requirements and the rapid development of new energy vehicles, magnesium alloy and aluminum alloy have become the main lightweight materials to reduce the quality of automobile equipment. At the same time, the amount of magnesium and aluminum used for bicycles are growing rapidly. Relying on the first-mover advantage in the magnesium alloy die-casting market, the company can quickly cut into the demand of supply-side reform in the industry and quickly occupy the market share under the opportunity of large-scale release of lightweight application of magnesium alloy. It is estimated that the company's 24-26-year net profit will be 1.1 billion RMB 151.5 billion respectively, maintaining the "overweight" investment rating. Risk hints: industry competition intensifies risk; raw material price rise risk; product structure change risk; downstream automobile industry production and marketing scale decline risk; exchange rate fluctuation risk. [disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.

[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.