This report is read as follows:
It is estimated that the offering price of JTech IPO is 17.63 yuan.
Summary:
According to the letter of intent of Jian Hi-Tech, the company's IPO expects to raise 340.1712 million yuan, offering underwriting and other expenses totaling 66.9055 million yuan, totaling 407.0767 million yuan. In the audited 2019 annual report, the net profit attributable to the owner of the parent company is 76.977 million yuan after deducting non-recurring profits and losses, and the diluted EPS is 0.83 yuan. It plans to issue 23.09 million shares, which is calculated at a price of 17.63 yuan per share based on the total amount of capital raised, and the corresponding PE is 21.15 times.
Corresponding to the static PE of China Securities Industry (i65) in the past month is 59.55 times, and the inverted fund-raising price of Jiaan Hi-Tech is lower than that of the industry PE, without considering the postponement of the issue, it is estimated that the issuing price of Jae-an Hi-Tech IPO is 17.63 yuan.
Jie'an Tech is one of the main suppliers of domestic rail transit simulation and training system. The company specializes in the research and development of computer simulation training system and technical services in the fields of rail transit, safety operation, shipping and other fields, mainly serving schools that set up rail transit-related majors, local railway bureaus and their subordinate units, subway companies and so on. The company is one of the main suppliers of rail transit simulation training system industry. It has passed CMMI3 and has three-level qualification of information system integration and service. It has obtained 77 software copyright related to rail transit virtual simulation training solutions, which basically covers all the business scope of rail transit field. The business income of rail transit simulation training system in 2017, 2018 and 2019 is 1.68,1.88 and 222 million yuan respectively. The compound growth rate is 14.96%. The downstream railway and urban rail transit industry as a whole maintains a steady growth rate, and the demand gap for technical personnel will bring more room for growth in the upstream simulation and training system industry. At the same time, due to the fact that the simulation operation is clearly put forward in the relevant public work safety and practical examination standards, the company's business income in the field of safety operations has increased rapidly in the past three years. At the same time, the company maintains a high scientific research expenditure to ensure the follow-up of new product research and development.
Taking into account the disclosure of the prospectus and the above analysis, we choose 300440.SZ, 300045.SZ and 603528.SH as comparable companies with an average price-to-earnings ratio of 38.32. According to the reverse calculation of the amount of capital raised in the letter of intent, the offering price of Jie'an Hi-Tech is 17.63 yuan, corresponding to 21.15 times the net profit PE in the 2019 annual report, and its valuation is lower than the industry PE and the average PE of 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 92 million shares, and the market value after the issue is estimated to be 1.628 billion yuan.
Risk hints: (1) the release rhythm of IPO is delayed by force majeure; (2) the investment in rail transit industry decreases and the demand of employees in the industry decreases.