Abstract In 2013, the company achieved a total operating income of 1.556 billion yuan, an increase of 23.93%; the net profit attributable to shareholders of listed companies was 210 million yuan, an increase of 22.49%; the realized earnings per share was 0.39 yuan. Company performance is in line with expectations. ...
In 2013, the company achieved a total operating income of 1.556 billion yuan, an increase of 23.93%; the net profit attributable to shareholders of listed companies was 210 million yuan, an increase of 22.49%; the realized earnings per share was 0.39 yuan. Company performance is in line with expectations.

In terms of products, the super-hard materials business achieved revenue of 1.079 billion yuan, an increase of 20.86% year-on-year. The gross profit margin was 31.58%, down 1.29 percentage points year-on-year; metal powder realized revenue of 199 million yuan, up 42.47% year-on-year, with a gross margin of 39.98. %, increased by 2.46 percentage points year-on-year; super-hard composite materials achieved revenue of 184 million yuan, up 45.15% year-on-year, gross margin was 39.91%, up 2.73 percentage points year-on-year; super-hard tool realized revenue of 17.6827 million yuan, down 5.79% year-on-year The gross profit margin was 22.30%, a decrease of 2.66 percentage points year-on-year; the super-hard materials products business achieved a revenue of 22.08 million yuan, a year-on-year increase of 0.46%, and the gross profit margin was 15.14%, a decrease of 3.60 percentage points year-on-year. From the performance of each business, the two new materials business of metal powder and super-hard composite materials have played a greater role in the growth of the company's performance.

The company plans to issue no more than 187 million shares, and the total amount of funds raised will not exceed 1.067 billion yuan. It is used for metallized single crystal and high-quality micro-powder industrialization projects for super-hard materials, super-hard material tool production line projects and supplementary liquidity. If the above projects can be implemented smoothly, it will help the company to optimize the product structure, realize the business extension in the diamond superhard materials and its downstream industrial chain, and increase the profit growth point.

The EPS of the company in 2014, 2015 and 2016 is expected to be 0.48, 0.59 and 0.71 respectively. The company's metal powder and super-hard composite materials business is still in a high-speed growth period and will continue to drive the company's performance to continue to grow. At present, the company's valuation level is already at a low level, and we maintain our rating on the company's purchase.

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