According to the letter of intent of Chaoyang Science and Technology, the company's IPO expects to raise 361.3827 million yuan, offering underwriting and other expenses totaling 54.2973 million yuan, totaling 415.68 million yuan. In the audited 2019 annual report, the net profit attributable to the owner of the parent company is 82.4994 million yuan after deducting non-recurring profits and losses, and the diluted EPS is 0.86 yuan. It plans to issue 24 million shares, which is calculated at a price of 17.32 yuan per share based on the total amount of capital raised, and the corresponding PE is 20.15 times.
Corresponding to the C39 industry (C39) nearly a month static PE is 47.81times, Chaoyang technology fund-raising price corresponding to the PE is lower than the industry PE, do not consider postponing the issue, Chaoyang science and technology IPO is expected to issue price of 17.32yuan.
Chaoyang Technology is a professional manufacturer of electro-acoustic products and electro-acoustic accessories, which has entered the supply chain of domestic and foreign well-known intelligent terminals and headphone brands, such as Apple Inc, Samsung, XIAOMI, Meizu and so on. The company has mastered a number of production technologies and established a R & D and production system covering major electro-acoustic products and electro-acoustic accessories. compared with listed companies in the same industry, the company is relatively small and mainly adopts the strategy of concentrating resources to serve high-quality customers. the company has cooperated with major customers or their terminal brands for many years and signed stable framework agreements with customers. The operating income of the top five customers from 2017 to 2019 was 4.67,4.39 and 659 million yuan respectively.
Stable customer orders have laid the foundation for the sustainable development of the company's business, the company's products maintain a strong competitive position in the industry, and the risk of being replaced is small. The company has benefited from the rapid increase in downstream demand brought about by the rapid development of the entertainment industry and the consumer electronics industry. With the rapid development of Bluetooth, WiFi and other wireless transmission technologies, wireless headset technology is gradually mature, and its market share is expected to continue to grow.
Taking into account the disclosure of the prospectus and the above analysis, we choose Yingtong Communications (002861.SZ), Golden Harvest Intelligence (300793.SZ) and 002241.SZ as comparable companies with an average price-to-earnings ratio of 49.89 times 2019.
According to the reverse calculation of the amount of capital raised in the prospectus, the offering price of Chaoyang Technology is 17.32 yuan, corresponding to 20.15 times the net profit PE in the 2019 annual report. The valuation of Chaoyang Technology is lower than the average PE of the industry and comparable companies, and the offering is not expected to be delayed. It is estimated that the total share capital after the issue will not exceed 96 million shares, and the market value after the issue is estimated to be 2.015 billion yuan.
Risk hints: (1) the release rhythm of IPO is delayed by force majeure, (2) high customer concentration and rising labor costs.
