According to Securities Star News, on December 18, 2024, Sinovel Precision (688059) announced that GF Securities Co., Ltd., Xinyu Shansi Investment Management Center (Limited Partnership), and Chunhou Fund Management Co., Ltd. investigated our company on December 18, 2024.

The details are as follows:

Q: Can you tell us about the company's performance for the third quarter of 2024?

Answer: The company's operating income in the third quarter of 2024 was 174.0955 million yuan, a decrease of 24.46% compared with the same period last year; the net profit attributable to the owners of the parent company was 5.1187 million yuan, a decrease of 88.17% compared with the same period last year; The net profit attributable to the owners of the parent company after deducting non-recurring gains and losses was 4.5352 million yuan, a decrease of 89.46% compared with the same period last year. The decline in the company's net profit in the third quarter of 2024 was mainly due to the decline in operating income in the third quarter of 2024 and the decline in gross profit margin due to insufficient capacity utilization.

The decline in the company's net profit in the third quarter of 2024 was mainly due to the decline in operating income in the third quarter of 2024 and the decline in gross profit margin due to insufficient capacity utilization.

Q: Please introduce the basic situation of the downstream of the tool industry?

Answer: According to the sales of global cutting tools in the manufacturing sector, general machinery accounts for 35%, the automotive industry accounts for 34%, aerospace accounts for 12%, the mold industry accounts for 4%, and others account for 15%. The company's main business income mainly comes from the mold industry, the automotive industry and the general machinery industry, and the company has actively deployed in the fields of aerospace, energy equipment, rail transit, etc., and has formed income.

Q: Please introduce the company's R&D investment in recent years?

A: From 2021 to 2023, the company's R&D expenses will be 24.9108 million yuan, 41.5566 million yuan, and 60.8708 million yuan respectively, showing an overall upward trend. The company's R&D expenses in the first three quarters of 2024 were 46.1099 million yuan, and the proportion of R&D expenses to operating income was 7.89%.

Q: Please introduce the company's R&D advantages?

Answer: The company has always adhered to the R&D strategy of "concentrating advantages and breaking through single products", continuously increased R&D investment, continued to introduce high-end R&D talents and advanced R&D equipment, and always focused on the R&D and innovation of the core technology and process of cemented carbide CNC tools. As of June 30, 2024, the company has 143 R&D technicians, accounting for 13.68% of the company's total number, covering four major R&D fields: matrix materials, groove structure, precision forming, and surface coating. On the other hand, the company has established a cutting laboratory that simulates real application scenarios, and is equipped with advanced processing and testing equipment such as CNC lathes, machining centers, tool runout detection, wear measurement, etc., which can quickly and accurately evaluate the cutting performance of products in the process of new product development and improve R&D efficiency. As of June 30, 2024, the company has 57 valid authorized patents, including 27 invention patents. Relying on the company's R&D advantages, the company's core products have been at the domestic advanced level in terms of cutting performance such as machining accuracy, machining efficiency and service life, and have entered the domestic high-end market occupied by European, American, Japanese and South Korean tool companies for a long time.

Q: Please tell us about the company's situation in developing the market

Answer: In 2024, the company will take multiple measures to develop the market and promote the transformation and upgrading of product promotion, channel improvement, product service, and sales team construction. The company actively participates in major domestic exhibitions, participates in academic exchange activities held by industry associations, and actively promotes the company's products. The company adheres to customer demand-oriented, with the goal of responding quickly to customer needs, on the basis of a mature distribution system, it has further strengthened the construction of the direct sales team and the development of direct sales customers, and the company's technical development capabilities and technical service capabilities have been continuously improved, and some key domestic industries have reached cooperation with key customers. The company accelerates the pace of "going global", increases overseas development efforts, continues to develop new customers, and improves the layout of overseas channels.

Q: What are the main aspects of the growth space of tool companies in the next few years?

Answer: In recent years, with the adjustment and upgrading of China's industrial structure, the market penetration rate of CNC machine tools has been increasing, and the proportion of tool consumption in machine tool consumption has continued to grow. At the same time, on the basis of the continuous introduction and digestion of foreign advanced technology, the research results and development and production capacity have been greatly improved, while the ability to control the performance of the tool has been continuously enhanced, some well-known domestic tool manufacturers have also been able to rely on their in-depth understanding of customer needs, high research and development strength to provide personalized cutting solutions for downstream users. Domestic tools extend to the high-end market, with the advantage of product cost performance, has gradually realized the substitution of high-end imported tool products, and accelerated the localization of CNC tools.

Sinovel Precision (688059) main business: The company is a well-known manufacturer of cemented carbide cutting tools in China, mainly engaged in the research and development, production and sales of cemented carbide CNC inserts.

According to Sinovel Precision's third quarter report in 2024, the company's main revenue was 585 million yuan, a year-on-year decrease of 0.52%; the net profit attributable to the parent company was 77.0564 million yuan, a year-on-year decrease of 27.06%; deducted non-net profit of 75.3926 million yuan, a year-on-year decrease of 25.88%; In the third quarter of 2024, the company's single-quarter main revenue was 174 million yuan, a year-on-year decrease of 24.46%; The net profit attributable to the parent company in a single quarter was 5.1187 million yuan, a year-on-year decrease of 88.17%; The non-net profit deducted in a single quarter was 4.5352 million yuan, a year-on-year decrease of 89.31%; The debt ratio was 48.24%, the investment income was 415,900 yuan, the financial expenses were 27.3905 million yuan, and the gross profit margin was 39.64%.

A total of 12 institutions have rated the stock in the last 90 days, 10 have given buy ratings and 2 have overweight ratings. The average institutional price target over the last 90 days is 64.56.

Here's the detailed earnings forecast information:

Margin data shows that the stock has a net financing inflow of 56,724,800 in the past three months, with an increase in the financing balance, and a net outflow of 185,800 with a decrease in the balance of securities borrowing and lending.

The above content is compiled by Securities Star based on public information, generated by intelligent algorithms, and does not constitute investment advice.