Triangle Defense is a listed company mainly engaged in special alloy forgings, and the company's products are mainly used in the new generation of fighters, new generation transport aircraft and new generation helicopters. With its strong competitiveness in the field of military industry, it has also been rated as a specialized and special new little giant by the Ministry of Industry and Information Technology.
(At the end of this article, the translator will go into detail about the valuation of this company, and only by the end of the article can you understand the true value of this company.) )
At present, the maximum drawdown of this enterprise has exceeded 67%, and there are signs of increasing volume. On Monday, the company's turnover was only 351 million yuan. And yesterday, the company's turnover reached 538 million yuan, which indicates that it may have gained attention.
After analyzing the company's financial reports, the translator found that the biggest highlight of the company is that the management not only pays attention to research and development, but also pays attention to talent training.
Since 2019, the company's R&D expenses have increased for five consecutive years, and in 2023, it hit a record high with 83.41 million yuan in R&D expenses.
R&D expenses are the core competitiveness of high-tech enterprises, and its continuous growth and record high shows that the company's competitiveness is constantly increasing, which also lays a solid foundation for the growth of its future net profit.
After looking at the company's R&D expenses, let's analyze the company's annual compensation for employees.
Since 2015, the company's annual compensation for employees has increased for nine consecutive years, and in 2023, it reached a record high with a salary of 87.52 million yuan.
The continuous increase in salaries and the record high shows that the company is currently in a period of rapid development, recruiting and expanding every year.
It is precisely because of the management's focus on R&D and talent training that the company's net profit has increased for 8 consecutive years since 2016, and in 2023, it will hit a record high with a net profit of 815 million yuan, and the company has made a qualitative leap in this year.
In 2024, the company will complete a net profit of 209 million yuan in one quarter, a year-on-year decrease of 4%.
The net profit of this enterprise ranks 22nd among the 370 listed companies in the national defense and military industry concept sector. This is a very high ranking, which indicates that it is relatively large.
Although the company's net profit in the first quarter of this year was more than 200 million, the company's actual net cash received from the sale of special forgings in the same period was -197 million yuan, a year-on-year decrease of 235%, which may be the company's shortcomings.
In fact, under the accrual accounting system, it is normal for the net cash received from the sale of goods to be lower than the net profit, or even negative. However, the year-on-year decline indicates that compared with the same period last year, the company's cash flow capacity has shown signs of weakening, and the cash in its account has also become less, which is very unfavorable to the company's production and operation, and we need to pay attention to it.
After looking at the company's operation this year, let's analyze the company's production capacity under construction and judge whether the company's net profit can increase in 2024.
Through the analysis of the translator, it was found that the company currently has 6 aviation precision forging projects under construction, and the estimated total investment of these projects has exceeded 2.1 billion yuan.
After comparing with the company's existing production capacity, the translator found that if these projects under construction can be completed, the company's production capacity, that is, the ability to produce aviation forgings, will be increased by about three times, which will also lay a solid foundation for its future net profit growth.
Further analysis of the translators also found that the average progress of these projects under construction has exceeded 40%. In other words, as long as the follow-up management invests less than 1.3 billion yuan, these projects can be completed.
At present, the total amount of cash that this company can take out in the short term, that is, monetary funds, is as high as 3.306 billion yuan, which shows that these projects do not have any financial pressure on the management.
At the end of this article, we will analyze the company's price-to-earnings ratio and price-to-book ratio, and determine the company's current valuation.
In the first quarter of 2024, the company traded at a price-to-earnings ratio of 17x. This shows that if the management distributes the profits made by the sale of aviation forgings to the shareholders every year, the shareholders will only need 17 years to return to their capital.
The current price-earnings ratio of this company ranks 18th from low to high among the 370 listed companies in the national defense and military industry concept sector. This ranking is very high, indicating that the valuation of this company is very low if measured by the price-earnings ratio.
After looking at the company's price-to-earnings ratio above, let's analyze the company's price-to-book ratio.
In the first quarter of 2024, the company's price-to-book ratio was 2.6 times, which means that the current market price of this company is 2.6 times its cost.
The company's current price-to-book ratio ranks 197th among the 370 listed companies in the national defense and military industry concept sector from low to high. This low ranking indicates that the company's valuation is high if it is measured by the price-to-book ratio.
The price-to-earnings ratio is a measure of the relationship between a company's net profit and price, while the price-to-book ratio is a measure of the relationship between a company's net worth and price. Therefore, through comprehensive judgment, the translator personally believes that the company's valuation is reasonable and not too high.
From the above analysis, we know that in the first quarter of 2024, although the company's cash flow capacity is showing signs of weakening, the cash in the company's account is very abundant. At the same time, the management is also significantly expanding production capacity, and by analyzing the progress of these projects under construction, the translator believes that these projects are likely to be completed this year.
If these projects can be put into production this year, it is bound to greatly improve the company's ability to produce aviation forgings, so the company's net profit this year is still likely to grow.
By analyzing the company's price-earnings ratio and price-to-book ratio, we can find that the company's valuation is quite reasonable and has future growth.
If the fundamentals of a listed company are divided into five levels: A, B, C, D, and E from high to low, the translator personally believes that the company can maintain a C level.
Please note: companies with good earnings reports do not necessarily rise. But those companies that can continue to rise sharply must have excellent financial reports.
This article is a pure financial report analysis article, and it is not intended to be recommended, and I hope you can refer to it carefully.