Company profile
Junzhi Group, founded in 2007, is the first domestic manufacturer of the same kind of electricity and electricity. The volume of the company's electronic products ranks first in the country, with a market share of about 25%. The products are widely used in the transport systems of trust suppliers, service providers and major equipment manufacturers. the main customers are the three major domestic suppliers, as well as Zhongli and other e-mail equipment suppliers, while also exporting to overseas markets.
Investment summary
According to the 13-year salary, the company realized an annual expenditure of 2.46 billion yuan (the same below), an annual increase of 10.2%, and a profit of 310 million yuan, a year-on-year increase of 24.3%, equivalent to a profit of 0.31 yuan per share. The full-year dividend per share was HK $0.14, with a dividend payout ratio of 39%.
The main reason for the manufacturing industry was that the 4G license was issued later than expected, and the total volume of 4G was about 128,000 km, an increase of 11.5% over the same period last year. At the same time, the main raw materials all fell by 6.8%, while the company decided to add cost to the market. In addition, in order to increase the market share, the company also strategically located the low part of the flame retardant market.
The company's profit growth significantly exceeded gross profit, mainly due to effective cost management and reduced financing costs. The cost of management research and development has increased significantly by about 65.5% due to the construction of 4G network, but the implementation of internal cost management has reduced the cost of sales and distribution by about 12.4%. In addition, thanks to the rights issue financing, the cost of corporate financing has also been significantly reduced by 31.2%. Worst of all, the company's interest rate increased by 1.5 percentage points year-on-year to 12.8%.
The core product of the company, the same transmitter, is a necessary component for the transmission of mobile signals on the base station, which can not be replaced by light. It is worth mentioning that each 4G base station needs to use at least 0.5 km or even 0.6 km of electricity, compared with about 0.5 km per 2G and 3G base stations. As a result, 4G investment accelerates the real demand of the company. At present, 40% of the same radios are used in base station construction.
In addition, the main customers of the company's flame retardant customer service are Qualcomm and email, accounting for 80% and 20% of the company's sales respectively. In 14 years, the company expects to introduce China Mobile as the downstream customer of the service, which is expected to further improve the growth certainty of the service. Over the past 13 years, the company's flame-retardant consumer spending has increased by 58%, which is higher than that of the same type of electricity, accounting for 6.1 percentage points to 20.4% of the total revenue.
After the last placement, the equity ratio of the company has dropped by nearly 8 percentage points. if the placement of 200 million shares is completed successfully, the equity ratio will be reduced by more than 15 percentage points, and the capital structure will be improved. At the same time, the company's liability will also be significantly reduced.
At present, the valuation of the company is only 6-7 times that of the 13-year EPS, which is not consistent with its growth. We give the company a target of HK $3, which is comparable to the 2014 valuation level of about 7 times that of the company.
