Recently, OKE issued a performance forecast that the net profit attributed to the owner of the parent company in the first half of 2021 is expected to be 99 million yuan to 110 million yuan, an increase of 51.0717 million yuan to 62.0717 million yuan compared with the same period last year, and an increase of 106.56% to 129.51% over the same period last year. The company pointed out that in the first half of 2021, the downstream market demand was strong, the import substitution of domestic cutting tools was accelerated, the order of CNC tool products was full, and the production capacity of CNC blades increased greatly. at the same time, the company increased the development of new products, and the company's profitability was further enhanced.
It is reported that OKE billion is mainly engaged in the business of cemented carbide products and CNC tool products, and the cemented carbide products produced by the company are mainly sawtooth blades and wafers, which are processed by downstream enterprises into cemented carbide cutting tools such as cemented carbide saw blades and wafer milling cutters, which are widely used in cutting all kinds of non-metallic and metal material workpieces. CNC tool products are mainly CNC blades, which are the "teeth" of CNC machine tools to achieve cutting function, and are the key components of the working mother machine. they are widely used in machining metal parts such as stainless steel, steel, cast iron, non-ferrous metals and so on. Its raw materials are mainly tungsten carbide (WC) and cobalt (Co) powder.
At present, the adjustment of tool consumption structure is accelerating, and the demand for NC tool consumption is increasing. According to the company's annual report, China is the country with the richest tungsten reserves in the world, but the utilization level of tungsten resources is not high. There are many enterprises engaged in cemented carbide products and tool manufacturing throughout the country, but most of them are small in scale and mainly oriented to the low-end market. As China's industrial policy promotes the extension of cemented carbide to the direction of intensive processing, cemented carbide products and tool structure are being further optimized, and the proportion of deep processing products represented by CNC blades will be further increased.
Tianfeng Securities also pointed out that at present, major domestic cemented carbide blade manufacturers have expanded production, and we estimate that the cemented carbide tool output of domestic tool enterprises will increase from 297 million pieces in 2020 to 453 million pieces in 2023, with an additional production capacity of 156 million pieces. At the same time, the demand for cemented carbide tools will increase by 232 million pieces in 2023. We believe that the increase in demand in the future is enough to cover the current expansion production of various manufacturers, and there is still a partial gap.
According to data from Southwest Securities, Okeyi is the leader of sawtooth blades in China, with an output of 1435 tons of sawtooth blades and wafers in 2020, the largest in China, and the company continues to produce cemented carbide cutting tools. In 2020, the output of cemented carbide CNC blades exceeded 55 million, ranking in the top three in China. Southwest Securities believes that at present, the company's production capacity is expanding in an orderly manner, raising funds to build 40 million new CNC blades to meet downstream demand and increase market share and profitability in the middle and high end. In the context of manufacturing recovery and industrial upgrading, the company benefits from certainty as a representative enterprise in the industry.
