Key points of investment

On Thursday (March 30), “Everbright Tongchuang”, a GEM listed company, asked for a quote.

Everbright Tongchuang (301387): The company is a high-tech enterprise focusing on R&D, production and sales of protective and functional consumer electronics products. The company achieved revenue of 831 million yuan/995 million yuan/996 million yuan/996 million yuan respectively in 2020 and 2022, YOY was 25.19%/19.74%/0.03% in that order, and the three-year revenue compound annual growth rate was 14.46%; achieved net profit of 94 million yuan/129 million yuan/114 million yuan, YOY was -8.39%/36.74%/-11.96%, and the three-year compound annual growth rate of Fumo's net profit was 3.32%. According to the company's preliminary forecast, it is expected to achieve net profit of 238 to 30.1 million yuan in the first quarter of 2023, a year-on-year change of 14.34% to 8.33%.

Investment highlights: 1. The company has established a long-term and stable cooperative relationship with Lenovo Group. During the reporting period, Lenovo Group was the company's largest customer. The Lenovo Group has been ranked first in global shipments in the PC sector for a long time, and the gap with second place has gradually widened in recent years. The company began supplying PC products to Lenovo as early as 2012 and signed long-term cooperation agreements with its important subsidiaries. Cooperation has continued to deepen over the years, receiving awards such as the “Quality Award” and “Excellent Supply Award” from Lenovo Group and its largest PC R&D and manufacturing base, Hefei Lianbao. During the 2019-2022H1 reporting period, Lenovo Group was the company's largest customer. The amount of revenue achieved by the company accounted for 39.35%, 39.70%, 46.04%, and 47.30% of operating income, respectively. By the end of September 2022, the company's end-of-period orders for Lenovo Group were 202 million yuan. 2. Relying on cooperation with Lenovo Group, the company is expected to promote domestic replacement of carbon fiber backplates for domestic laptops. Carbon fiber is a new type of fiber material with high strength and high modulus. The laptop structural parts made from it have excellent characteristics of being light, thin, and high strength. Currently, the international carbon fiber market is mainly dominated by companies such as Toray, Toho, Mitsubishi Liyang, and America's Hexel. The Lenovo Group is in high demand for domestic carbon fiber backboard products in PC production. The company is actively cooperating with them in research and development. At present, it has successfully launched laptop carbon fiber backboards and achieved mass production and delivery. The sales volume of the 2020-2022H1 is 17.07, 58.73, and 454,200 PCS respectively, and revenue is growing rapidly.

Comparison of listed companies in the same industry: Anjie Technology, Feirongda, Hengmingda, Boshuo Technology, Dari Electronics, and Hong Fuhan were selected as comparable listed companies created by Everbright. Looking at the comparable companies mentioned above, the average revenue scale of the industry from the fourth quarter of 2021 to the third quarter of 2022 (Feirongda and Hengmingda for the whole of 2022) was 2,158 billion yuan. The comparable PE-TTM (excluding the highest value/arithmetic average) was 27.53X, and the gross sales margin was 31.21%; in comparison, the company's revenue scale was significantly lower than the industry average, and the gross sales margin was slightly lower than the industry average.

Risk warning: There is still a possibility that companies that have begun the inquiry process will not be able to go public due to special reasons; company content is mainly based on the content of prospectus and other public information; there is a risk that the selection of listed companies in the same industry is not accurate enough; there may be interpretation deviations in the selection of content data. The specific risks of listed companies are shown in the text.