Sirui New Materials lays out rocket materials, medical, optical communications, and aerospace to dig deep into the moat of science and technology

Text: Tengxiao

Editor: Knock on the editorial department of Caixun

Relying on high-strength and high-conductivity alloy materials, Sirui New Materials, which is deeply engaged in the fields of medical and optical modules, has 688102. SH) is making inroads into more technology fields.

On January 25, Sirui New Materials announced that it plans to invest 1.33 billion yuan to expand production, involving the construction project of liquid rocket engine materials and science and technology industrial park, of which the total investment in the "liquid rocket engine thrust chamber materials, parts, and components industrialization project" will reach 510 million yuan.

According to the announcement, the investment will be carried out in two phases, one of which is planned to invest 230 million yuan, and is expected to achieve an annual output of about 200 tons of forgings, 200 sets of rocket engine injector panels, 500 sets of rocket engine thrust interior walls, outer walls and other components; the second phase plans to invest 280 million yuan, is expected to achieve an annual output of about 100 tons of forgings, 200 sets of rocket engine injector panels, 600 sets of rocket engine thrust interior walls, outer walls and other components.

At present, forgings and thrust chamber walls have been supplied in small quantities. The total estimated construction period is 5 years.

The reason why it can enter this field is that Sirui has successfully expanded the self-developed high-strength and high-conductivity copper alloy material with chromium zirconium copper (CuCrZr) as the core to the field of thrust chamber wall of liquid rocket engine, and has been successfully applied.

From the perspective of the industry, in the new era of interstellar exploration, the further development demand in the aerospace field will bring potential and huge growth potential to the above-mentioned investment of Sirui New Materials, and the involvement of this business means that Sirui New Materials will also further dye its business from medical and optical modules to the aerospace field with a higher threshold, and its moat in the field of science and technology will also be further raised.

1) Nuggets Interstellar Voyage

It is understood that the liquid rocket thrust chamber involved in the new material is composed of a jet, a combustion chamber and a nozzle, which is a component in the rocket engine that completes the propellant energy conversion and generates thrust.

As an important device of the rocket engine, the role of the thrust chamber is to use the high-temperature and high-pressure gas heat generated by the propellant combustion to convert kinetic energy into kinetic energy in the thrust chamber, which requires the thrust chamber wall material to have good high temperature resistance and thermal conductivity, and export the heat of fuel combustion during the rocket launch process to ensure the normal operation of the engine.

According to the announcement of Sirui New Materials, after the implementation of the project, the company's product production capacity will be expanded, which will help meet the company's business development needs and promote the growth of the company's operating performance, thereby increasing the company's market share and expanding the company's brand influence.

The company's business scale will be further expanded, the market layout will continue to improve, and the business development ability will be enhanced in an all-round way, which is conducive to expanding the company's competitive advantage and improving the company's sustainable profitability. In the medium to long term, the project is in line with the company's development plan and has good profit prospects.

From the perspective of the industry, at this time, Sirui New Materials will lay out rocket materials, or will benefit from the general trend of more rocket launch demand in the future "Interstellar Age of Discovery".

"With the reduction of SpaceX's space launch costs, coupled with the rapid development of domestic private aerospace capital, it is expected that a new round of space exploration boom in China and even the world is coming, and more exploration of the universe by human beings has just begun, and from the perspective of energy density, in this process, liquid energy rockets as irreplaceable lift-off equipment in the aerospace field still have strong irreplaceability. "Although the penetration rate of recyclable rockets is increasing, which may reduce the turnover of related hardware, the increase in the total amount will obviously stimulate the growth of this field." ”

In fact, the global space market is indeed entering a period of rapid growth.

According to the official accounts of the China Aerospace Industry Quality Association and the Beijing Aerospace Long March Science and Technology Information Institute, from 2000 to 2017, the number of rocket launches worldwide only increased from 85 to 91, and from 2017 to 2023, it quickly increased to 223, more than doubled.

As the core component of the launch vehicle, the main engine technology is complex and the cost is high, accounting for 30%~50% of the overall cost of the rocket. Liquid engines, on the other hand, have the advantage of being recyclable, which is a significant advantage in the context of the pursuit of cost reduction in commercial aerospace.

"The future trend will definitely be recyclable rockets, and the high demand for high-conductivity and high-strength materials in the thrust chamber will become an inevitable trend, which will drive the high growth of related materials and industrial chains. A material analyst at a listed brokerage firm in Beijing pointed out that "in the medium and long term, material companies that have accumulated more time in this field will benefit from this process, and this field also has a relatively high moat and threshold, because the rocket launch field has relatively high requirements for stability, and usually the first entrant has a strong first-mover advantage." "

2) "Material +" expands growth

In fact, entering the field of rocket materials is only a cross-section of Sirui New Materials relying on high-strength and high-conductivity alloy materials to achieve rapid development.

Prior to this, Sirui New Materials has achieved rapid development in performance by cutting into the fields of medical treatment and optical communication.

According to the financial report, from 2020 to the first three quarters of 2023, the company's operating income reached 681 million yuan, 968 million yuan, 994 million yuan and 869 million yuan respectively, with a year-on-year growth rate of 20.34%, 42.26%, 2.61% and 21.02% respectively, and the net profit attributable to shareholders of the parent company reached 41 million yuan, 50 million yuan, 53 million yuan and 55 million yuan respectively, a year-on-year increase of 56.25%, 20.56%, 5.23%, 77.47%。

In the opinion of analysts, relying on the advantages of medium and high voltage electrical contact materials and high-strength and high-conductivity copper alloys, coupled with the field of rocket materials that we are now entering, this will help the steady growth of Sirui New Materials to be sustained.

"Medium and high voltage electrical contact materials and products, high-strength and high-conductivity copper alloy materials and products, the two main businesses, leading market share, is expected to continue to grow steadily in the future. Li Yonglei, an analyst of power equipment at Guohai Securities, said, "The newly expanded liquid rocket engine thrust chamber wall, CT&DR tube components, high-performance chromium powder and optical module chip base materials are ushering in a boom window, and the performance of the sector is expected to grow rapidly." The company has leading technology, supplies downstream head customers, and at the same time comprehensively expands production capacity with strong growth. ”

The above-mentioned materials analysts of Beijing-listed securities companies believe that Sirui New Materials relies on materials as the core competitiveness to cut into the high-end manufacturing industry, which has shown a "material +" industry development model, which will broaden the growth boundary of material companies to a certain extent.

"In the past, the material industry was more about providing standard raw materials, but now with the upgrading of high-end materials, material companies' cognition of the industry and industry is iterating, which can better combine with the needs of the industry and jointly tap the dividends of these emerging manufacturing industries. The above-mentioned material industry analysts pointed out that "whether in the field of high-end medical or optical communications, the new material enterprises represented by Sirui New Materials have shown the development characteristics of this 'material +', with the rapid growth of the downstream manufacturing industry, the material companies themselves will also be fed back and upgraded, and then consolidate their own moat." ”

Li Yonglei also believes that Sirui New Materials takes the preparation technology of copper-based special materials as the core, expands emerging downstream fields, and with its core technology advantages, it has realized the supply of downstream head customers in many fields. With the high boom window in many fields, the company has fully expanded production and opened up space for growth.

"Medium and high voltage electrical contact materials and products are mainly copper-chromium and copper-tungsten alloy materials, the company has successfully solved the problem of import substitution, and sold back overseas, in the field of subdivided materials to achieve a leading global market share. Li Yonglei pointed out.