Key investment points
Three listed companies made inquiries this week, including 2 on the gem and 1 on the main board.
Jinhui Co., Ltd.: the company is mainly engaged in the mining, beneficiation and trade of non-ferrous metals, and its main products are zinc concentrate and lead concentrate (including silver).
The mining area of the company is located in the east end of the South ore belt of Xicheng ore field and the east of Luoba lead-zinc deposit. It is rich in lead-zinc resources and convenient transportation. The company now has two mining rights, namely Guojiagou mining right and Guojiagou south mining right; The two exploration rights are Jiangkou exploration right and huomadi exploration right respectively; At the same time, the company has Lijiagou concentrator. From 2019 to 2021, the company achieved operating revenue of 799 million yuan / 1.122 billion yuan / 1.252 billion yuan respectively, yoy was 27.9% / 40.54% / 11.60%, and the compound annual growth rate of operating revenue in the three years was 25.18%; The net profit was 161 million yuan / 362 million yuan / 463 million yuan, and the yoy was 443.98% / 124.67% / 27.71% in turn. The compound annual growth rate of the net profit attributable to the parent company in three years was 69.58%.
Investment highlights: 1. The ore bodies in the two mining rights owned by the company are not fully controlled, so there is great potential for further exploration; At the same time, the two exploration rights owned by the company have good metallogenic geological conditions, and the resource reserves available for development and utilization are expected to be obtained by increasing exploration investment. 2. The company implements the requirements of green ecological construction and has the competitive advantage of national green mining enterprises.
Comparison of Listed Companies in the same industry: Listed Companies in the same industry mainly include Huayu mining, Tibet Summit Resources Co.Ltd(600338) , Guocheng Mining Co.Ltd(000688) , Inner Mongolia Xingye Mining Co.Ltd(000426) , Shengda Resources Co.Ltd(000603) , etc. From the perspective of Listed Companies in the same industry, the current average income scale of the industry (the first three quarters) is 1.18 billion yuan, and the average market value is 14.244 billion yuan; After excluding negative values, the average pe-ttm (arithmetic mean) is 50.25x and the median pe-ttm is 46x. In comparison, the income scale of Jinhui shares is in the middle range of the industry, but the growth rate of net profit in 2021 may be lower than the industry average.
West Point pharmaceutical: the company is mainly engaged in the R & D, production and sales of chemical raw materials and preparations; At present, a product system has been formed with anti anemia drugs, drugs for the treatment of mental disorders and raw materials as the core, and drugs for the treatment of cardiovascular and cerebrovascular diseases and anti-tumor drugs as the auxiliary. From 2018 to 2020, the company achieved operating revenue of 280 million yuan / 325 million yuan / 286 million yuan respectively, yoy was 16.07% / – 12% in turn, and the compound annual growth rate of operating revenue in the three years was 1.07%; The net profit was 41 million yuan / 55 million yuan / 50 million yuan, yoy was 34.15% / – 9.09%, and the compound annual growth rate of the net profit attributable to the parent company in three years was 10.43%. In the first three quarters of 2021, the company’s operating revenue was 207 million yuan, with a year-on-year growth rate of 1.54%; The net profit attributable to the parent company was 34 million yuan, with a year-on-year growth rate of 2.86%. The company expects the growth rate of net profit attributable to the parent company to be – 9.53% to 2.53% in 2021.
Investment highlights: 1. The company has the advantage of integration of APIs and preparations. The company has a mature API production system, which can produce and meet the needs of prebiotics. At the same time, the company has the exclusive production advantage of daphnetin API in China, which can ensure the supply of daphnetin capsule API. 2. The company’s products have differentiated competitive advantages in dosage form, specification and production technology. (1) The company has the exclusive variety of compound ferrous sulfate folic acid tablets (yiyuansheng). (2) The core product risperidone orally disintegrating tablets has the advantages of dosage form.
(3) daphnetin capsule is the only manufacturer in China.
Comparison of Listed Companies in the same industry: Listed Companies in the same industry mainly include Zhuhai Rundu Pharmaceutical Co.Ltd(002923) , Shanxi C&Y Pharmaceutical Group Co.Ltd(300254) , Fujian Cosunter Pharmaceutical Co.Ltd(300436) , Nanjing Hicin Pharmaceutical Co.Ltd(300584) , Jiangsu Lianhuan Pharmaceutical Co.Ltd(600513) , Jiangsu Jibeier Pharmaceutical Co.Ltd(688566) . At present, the average income scale of the industry (the first three quarters) is 640 million yuan, and the average market value is 3.654 billion yuan; The average pe-ttm (arithmetic mean) after excluding negative values is 53.68x, and the median pe-ttm of the industry after excluding Fujian Cosunter Pharmaceutical Co.Ltd(300436) is 30.4x. In comparison, the revenue scale of West Point pharmaceutical in the first three quarters was in the middle and lower range of Listed Companies in the industry, and the sales gross profit margin was in the middle and upper position of Listed Companies in the industry.
Han CNC: the company was founded in 2002 and has been deeply engaged in the subdivision of PCB special equipment in recent 20 years; Up to now, the company has built a three-dimensional product matrix covering different subdivided PCB markets such as multilayer board, HDI board, IC packaging substrate, flexible board and rigid flex combination board, as well as different PCB processes such as drilling, exposure, forming and testing, which can provide differentiated one-stop process solutions for customers in different subdivided fields of PCB. From 2018 to 2020, the company achieved operating revenue of 1.723 billion yuan / 1.323 billion yuan / 2.210 billion yuan respectively, yoy was – 23.24% / 67.04%, and the annual compound growth rate of operating revenue in the three years was 13.25%; The net profit attributable to the parent company was 373 million yuan / 228 million yuan / 304 million yuan, yoy was 38.87% / 33.33%, and the compound annual growth rate of the net profit attributable to the parent company in three years was – 9.72%. As of the third quarter of 2021, the company’s operating revenue was 2.867 billion yuan, a year-on-year increase of 74.89%; The net profit attributable to the parent company was 263 million yuan, a year-on-year increase of 35.10%. Meanwhile, according to the prediction of the company, the net profit in 2021 will increase by 126.96% to 140.12% year-on-year.
Investment highlights: 1. The company is the leader of domestic PCB special equipment and has a leading position in the industry. According to the ranking of PCB special equipment by CPCA Industry Association, the company ranked first in special instruments and equipment in the top 100 list of China’s electronic circuit industry released by CPCA for 12 consecutive years (2009-2020), and its subsidiary Masson Electronics (2014-2020) ranked fourth for seven consecutive years. 2. Compared with PCB suppliers whose business focuses on a single process or a few processes, the company has built a relatively complete product matrix through independent research and development, provided customers with one-stop solutions, and formed multi-dimensional collaboration among technology, products, application scenarios, supply chain and customers. 3. The performance parameters of the company’s main products have reached the world’s advanced level, helping Chinese PCB manufacturers reduce their dependence on overseas equipment, and the leading edge of R & D technology has been revealed. 4. The company has abundant customer resources, and has basically realized the full coverage of mainstream PCB manufacturers. The company has covered 89 in the list of NTI global top 100 PCB enterprises in 2019 and 95 in the list of CPCA 2019 China’s top 100 comprehensive PCB enterprises, including Zhending technology, Xinxing electronics, Suzhou Dongshan Precision Manufacturing Co.Ltd(002384) , Huatong Co., Ltd., Jianding technology, Shennan Circuits Co.Ltd(002916) , Hanyu bode, Jiantao group, Wus Printed Circuit (Kunshan) Co.Ltd(002463) , meiko, Shenzhen Kinwong Electronic Co.Ltd(603228) and other well-known PCB manufacturers in Chinese and foreign industries.
Comparison of Listed Companies in the same industry: the listed companies in the same industry mainly include Guangdong Zhengye Technology Co.Ltd(300410) , Shenzhen Yanmade Technology Inc(688312) , Circuit Fabology Microelectronics Equipment Co.Ltd(688630) , Kunshan Dongwei Technology Co.Ltd(688700) . At present, the average income scale of Listed Companies in the same industry (the first three quarters) is 566 million yuan, and the average market value is 5.56 billion yuan; After excluding negative values, the average pe-ttm (arithmetic mean) is 48.35x and the median pe-ttm is 41.65x. In comparison, the revenue scale of Han’s CNC in the first three quarters of 2021 far exceeds the industry average, and the gross profit margin and roe are basically the same as Guangdong Zhengye Technology Co.Ltd(300410) with relatively large revenue volume.
Risk tips: companies that have started the inquiry process may still be unable to be listed for special reasons, the company’s content is mainly based on the contents of the prospectus and other public materials, there is a risk that the selection of Listed Companies in the same industry is not accurate, there may be interpretation deviation in the selection of content data, and the risks of specific listed companies are displayed in the text, etc.
