Baoti Co., Ltd.: The company will further explore the product market, optimize product structure, enhance product competitiveness, continue to do a good job in production and operation, and promote the company's high-quality development

Baoti shares (600456) answered investors' concerns on the investor relations platform on June 30.

Investor: what is the self-sufficiency rate of titanium sponge in your company? Are there any specific measures to increase the gross profit margin of products?

The company's raw materials are purchased according to the production plan, according to the principle of comparing quality to price and unifying external principles, it is obtained by internal production (the company's holding subsidiary Baotinhuashen can meet part of the demand of the company's main material sponge titanium) and external procurement. The company will further open up the product market, optimize the product structure, enhance the product competitiveness, continue to do a good job in production and operation, and promote the high-quality development of the company.

Investor: Hello, Mr. Dong. What is the number of shareholders now?

Bao Ti shares: according to the principle of fairness of information disclosure, the company will disclose the number of shareholders up to the end of the reporting period in its periodic report in accordance with the relevant provisions of securities supervision.

Investor: what are the projects under construction in your company, what is the production capacity and when is it expected to be put into production?

The company is actively promoting the construction of the fund-raising project, and some of the equipment in the project has been installed, debugged and trial-produced, and the overall production capacity of the company will be gradually increased. For the progress of each project and the time when it is expected to be available, please refer to the relevant announcement disclosed by the company on June 21.

Investors: Mr. Lei said in an interview at the Seventh Industrial Awards that the group's titanium output reached 34000 tons, accounting for 60% of China's high-end aviation, 90% of foreign aviation exports and 95% of titanium for Chinese engines. May I ask whether the titanium materials of the group are all produced by Baotou shares, and whether there is competition in the same industry in the group?

Dong Secret of Baoti shares: there is no industry competition between the company and Baotian Group.

Investors: the company is the first listed company in China's titanium industry and the main setter of industry standards. "Baoti" has become the term "Chinese titanium". However, the profit of the company is far less than that of Western Superconductor, and its market capitalization is less than half. I'd like to ask what the company's problem is.

Bao Ti shares: the stock price in the secondary market is affected by multiple factors. The company has been working hard to do a good job in production, operation and management, promote the stable development of the company, and repay investors with good performance.

Investor: Hello, Mr. Dong! Your company's 2022 annual report and the first quarterly report of 2023 show that the increase in income does not increase profits, the gross profit margin of sales has dropped sharply, and the performance is large but not strong. Indicators such as inventory turnover and net operating cash flow also show a decline in the operating capacity of enterprises. In view of the SASAC's requirement of "one increase, one stability and three improvements", what specific measures do you have to improve the efficiency and efficiency of the enterprise and enhance the ability to create the value of unit assets?

The company will further develop the product market, optimize the product structure, enhance the product competitiveness, continue to do a good job in production and operation, and promote the company's high-quality development.

Investors: Hello, Dong Mi, the production capacity under construction disclosed in the company's annual report is 7790 tons, and according to the public information of Shaanxi State-owned assets Supervision and Administration Commission, the total design production capacity of high-quality titanium ingots, pipes, profiles production lines and aerospace wide titanium alloy plates and foil construction projects is 7390 tons.

Bao Ti shares Dong Secretary: the company is building a production capacity of 7790 tons, of which the raised investment project capacity is 7390 tons, and the rest is the new production capacity under construction for the technical reform of the production process.

Investor: Hello, Dong Mi, what is the proportion of the sales of titanium products disclosed in the company's annual report, whether it only includes external sales or total sales?

The company's main products are titanium and titanium alloys of various specifications, and the sales of titanium products disclosed in the company's annual report do not include the sales of titanium sponge in the subsidiary company.

Investor: Hello, Comrade Dong Mi. Boeing stopped using Russian titanium alloy last year, and Airbus will give up the Russian titanium industry this year. This is a godsend opportunity for the company to expand the international market. Did the company get an order from Boeing Airbus? Is there a supply relationship? Thank you very much for your patient answer!

The overseas market is always the important direction of the company's market development, and the international well-known enterprises such as Boeing and Airbus are the company's long-term partners. The company's export business income can be found in the company's periodic report.

Investors: the main supplier section of the annual report, should the second sentence be corrected to "does not exist during the reporting period", the revenue and profit of the fourth quarter is quite different from that of the previous quarters, why? Why don't Western Materials and Western Superconductor have the same situation as your company?

Secretary of Baotian shares: thank you for your attention to the company. It is not applicable to the selection of relevant content and meets the requirements of periodic report format preparation and disclosure. In 2022, the company's profit fell 0.56% from the same period last year, mainly due to the increase in the price of raw materials and changes in some manufacturing costs.

According to the first quarterly report of Bao Ti shares 2023, the company's main income was 1.875 billion yuan, up 18.39% from the same period last year; the net profit from its parent was 137 million yuan, down 29.31% from the same period last year; deducting 132 million yuan from non-net profit, down 31.22% from the same period last year; debt ratio 46.91%, investment income 2.0203 million yuan, financial expenses 22.4009 million yuan, gross profit margin 18.54%.

A total of seven agencies have rated the stock and seven have bought ratings in the last 90 days, with an average price target of 43.7 over the past 90 days. In the past three months, the net outflow of financing was 93.6898 million, and the financing balance decreased; the net outflow of securities was 7.7486 million, and the balance of securities lending decreased. According to the financial report data of the past five years, the Securities Star valuation analysis tool shows that Baoti shares (600456) has a good moat of competitiveness in the industry, average profitability and excellent revenue growth. There may be hidden financial worries, and the financial indicators that should be paid close attention to include: monetary funds / total capital ratio, accounts receivable / profit margin, operating cash flow / profit margin. The stock has a good company index of 3 stars, a good price index of 3.5 stars and a comprehensive index of 3 stars. (indicator is for reference only, indicator range: 0 ~ 5 stars, maximum 5 stars)

Bao Ti shares (600456) main business: the company is mainly engaged in titanium and titanium alloy production, processing and sales.