Under the weak market environment, the breaking rate has also increased. The breaking of new shares has also attracted the attention of regulators. Recently, financial media reported that the Shanghai Stock Exchange organized a number of securities companies to hold a symposium to discuss the breaking phenomenon of the current market.
In the future, innovation will undoubtedly become a technical activity. Investors must also have their own innovation methodology system to help judge whether a new share is worth subscription.
For example, the day before CNOOC’s subscription, when all securities dealers were silent, DAGO’s new observation group shouted “the new shares that are most likely to make money this year are coming”. Of course, the market also interpreted DAGO’s prediction. The new basis for making the new judgment in Jige Da Tuan is the new judgment in Jige Da Tuan. However, it is a pity that there is still a purchase abandonment amount of 240 million yuan, and many investors have not applied for CNOOC.
All right, back to the point. Tomorrow, a new share will be issued for Mingke Jingji, which will be listed on the Shenzhen main board. So, what about the fundamentals of Mingke’s fine technology? Today, DAGO called a new observation mission to interpret it for you.
Basic information
Mingke precision technology is mainly engaged in the R & D, production and sales of precision stamping dies and metal structural parts. The company’s main products include molds, metal structural parts, etc. The company has successively won the honorary titles of “China backbone mould enterprise” and “China key mould export enterprise” issued by China mould industry association.
From 2018 to 2021, the revenue of Mingke fine technology was 645 million yuan, 745 million yuan, 732 million yuan and 856 million yuan respectively, and the compound growth rate of operating revenue in recent three years was 9.89%. From 2018 to 2021, the net profit of the company was 444951 million yuan, 857183 million yuan, 1034431 million yuan and 944192 million yuan respectively, and the compound growth rate of net profit in recent three years was 28.50%.
Industry situation
According to the industrial classification of national economy, the automobile metal structure business of Mingke precision technology belongs to the “automobile parts and accessories manufacturing” industry in the “automobile manufacturing industry”, and the mold manufacturing business belongs to the “mold manufacturing” industry in the “special equipment manufacturing industry”.
China’s auto parts market shows an overall growth trend. In 2021, the main business income of China’s auto parts industry was 4066765 billion yuan, a year-on-year increase of 12.00%.
According to the prediction of the well-known foreign institution strategyr, the global mold market scale is expected to maintain a compound growth rate of 4.8% from 2020 to 2027. In 2019, the sales revenue of China’s mold industry was 341614 billion yuan, with a compound growth rate of 8.50% from 2011 to 2019.
Valuation comparison
Based on the issue price, the dynamic price earnings ratio (TTM) of Mingke precision technology is 22.3 times. According to the prospectus of Mingke Jingji, its comparable companies include Lucky Harvest Co.Ltd(002965) , Jiangsu Bojun Industrial Technology Co.Ltd(300926) , Shanghai Yanpu Metal Products Co.Ltd(605128) and Vt Industrial Technology Co.Ltd(300707) .
As of the closing on April 25, the average dynamic price earnings ratio (TTM) of comparable companies was 46.66 times. It can be seen that the valuation level of the company is lower than the average level of comparable companies.
According to the data, based on the overall method, the latest price earnings ratio (TTM) of the auto parts and accessories manufacturing industry is 23.98 times, and the latest price earnings ratio (TTM) of the mold manufacturing industry is 59.79 times. It can be seen that the valuation level of the company is lower than that of the industry as a whole.
It can be seen from the above data that the valuation level of Mingke precision technology has certain advantages compared with comparable companies and its industry.
New mood
Mingke fine technology will land on the Shenzhen main board. In the last 10 trading days, the Shenzhen composite index fell 9.90%, the auto parts and accessories manufacturing industry fell 11.10% in the last 10 trading days, and the mold manufacturing industry fell 15.16% in the last 10 trading days.
Of the last 10 new shares listed, 6 broke on the first day of listing, with a breaking rate of 60%; The latest 10 listed new shares on the main board have not broken, and the breaking rate is 0%.
It can be seen that although the recent trend of Mingke fine technology’s sector and industry is relatively weak, the new mood in the main board market is still strong, and there is no break on the first day of listing.
Final conclusion
On the whole, Mingke fine technology has a general growth rate of operating revenue and a good growth rate of net profit; Its profitability index is better than that of comparable companies; The industry has strong periodicity and shows an overall growth trend; The company’s valuation is lower than the average level and industry level of comparable companies, so it has certain valuation advantages; Its motherboard is still in a strong mood to play new.
DAGO Da Xin observation group divided the new shares into four sections according to the breaking risk from small to large, namely comfort area, neutral strong area, neutral weak area and cautious area. Overall, Mingke fine technology can be classified as a comfort zone.
