Jiangsu Huachen (603097)
(the special coverage report of new shares aims to conduct a simple research and sorting on the recently inquired listed companies)
Key investment points
A total of one company made an inquiry in this period, and the main board listed company “Jiangsu Huachen” will make an inquiry on April 22 (Friday).
Jiangsu Huachen (603097): the company specializes in the R & D, production and sales of transmission and distribution and control equipment. Its main products include dry-type transformers, oil immersed transformers, box type substations and complete sets of electrical equipment. From 2019 to 2021, the company achieved operating revenue of 632 million yuan / 681 million yuan / 871 million yuan respectively, yoy was 3.25% / 7.85% / 27.82%, and the annual compound growth rate of operating revenue in the three years was 12.49%; The net profit attributable to the parent company was 69 million yuan / 83 million yuan / 78 million yuan, yoy was 36.83% / 20.16% / – 5.22%, and the compound annual growth rate of the net profit attributable to the parent company in three years was 15.93%. According to the company’s preliminary forecast, the net profit attributable to the parent company in 2022q1 is expected to increase by 90.96% – 100.5% year-on-year, mainly due to the recovery of some customer receivables and the reversal of bad debt reserves.
Investment highlights: 1. The company has rich project experience, and the project involves many downstream industry applications such as power grid, new energy, rail transit, electric vehicle charging pile, industrial manufacturing, infrastructure construction, real estate construction, etc., and its development is expected to be relatively stable. During the reporting period from 2019 to 2021, the company added 16921 orders in total, with the corresponding total amount of orders (excluding tax) of about 607 million, 728 million and 924 million respectively, and the company’s orders increased steadily; At the same time, the company serves many downstream industries, and has established marketing and after-sales service networks in Huaihai district (Xuzhou and Northern Jiangsu), Southern Jiangsu, Anhui, South China, Sichuan and Chongqing, central China, North China and northwest, which can better serve customers in different industries and regions. 2. The development of new energy field promotes the development of relevant distribution equipment, and the company increases the layout of new energy related product lines, which is expected to improve the business scale of the company. During the reporting period, the company has accumulated more project experience in the field of new energy, and the project involves specific sub items such as photovoltaic, wind power and energy storage; At the same time, the company has also established cooperative relations with Sungrow Power Supply Co.Ltd(300274) and other new energy industry leaders. With the adjustment of national energy structure and the gradual growth of new energy power generation, the demand for distribution equipment in the field of new energy is expected to continue to improve; The company’s fund-raising project increases the capacity construction of new energy intelligent box type substation, which is expected to boost the company’s growth expectation in the future.
Comparison of Listed Companies in the same industry: Jiangsu Huachen’s comparable companies in the same industry mainly include Beijing Creative Distribution Automation Co.Ltd(002350) , Hainan Jinpan Smart Technology Co.Ltd(688676) and Shijiazhuang Kelin Electric Co.Ltd(603050) . Assuming that the above companies look at the situation of the same industry, the average revenue scale (the first three quarters) of comparable listed companies in the same industry is 1.62 billion yuan, the average gross profit margin is 21.85%, and the average pe-ttm (arithmetic average) is 26.2x. In comparison, the company’s revenue volume is lower than the average level of comparable companies, and the gross profit margin is basically the same as the average level of comparable companies.
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.
