Main points of investment
Next Wednesday (January 4), there will be an inquiry by Foster, a company listed on the main board.
Fosda (603173): the company has been committed to cryogenic technology for a long time, the main products are air separation equipment, liquefied natural gas plant, wound tube heat exchanger, chemical cold box and liquid storage tank and other cryogenic equipment. From 2019 to 2021, the company achieved operating income of 719 million yuan / 1.078 billion yuan / 1.446 billion yuan, YOY of 29.62%, 50.01%, 34.16%, 37.66%, respectively, and realized net profit of 71 million yuan / 145 million yuan / 160 million yuan, YOY of 398.19%, 104.41% and 10.65%, respectively, and a compound annual growth rate of 124.19%. In the latest reporting period, the company achieved operating income of 1.272 billion yuan in the first three quarters of 2022, an increase of 42.33% over the same period last year, and a net profit of 112 million yuan, an increase of 34.47% over the same period last year.
The company expects the net profit attributable to parent shareholders to be about 150 million yuan to 180 million yuan in 2022, an increase of-6.35% to 12.38% over the same period last year.
Investment highlights: 1. The company is a leading manufacturer in the domestic cryogenic industry, and it is one of the only five enterprises with 60,000 grade and above oxygen production capacity air separation equipment in China. Founded in 2000, the company has been ploughing cryogenic equipment and solutions since its inception. At present, it is one of the leading manufacturers in the cryogenic industry in China, and its market share is in the forefront of the industry in recent years. According to the company's prospectus, from 2018 to 2020, the domestic market share of air separation equipment calculated on the basis of oxygen production capacity was 7.15%, 9.72% and 4.99% respectively, ranking fourth, fourth and seventh in the industry, respectively. In addition, the company is one of the only five enterprises in China with the performance of air separation equipment with oxygen production capacity of 60,000 or above, and one of the few enterprises with the manufacturing capacity of 1 million square grade LNG equipment, and has a good ability to undertake large and super-large equipment projects. 2. The company may benefit from the steady demand for air separation equipment brought about by the integration of petroleum refining and chemical industry and the development of modern coal chemical industry and metallurgical industry. As of the first three quarters of 2022, the company has abundant orders on hand. The main application fields of the company's core product air separation equipment are chemical industry and metallurgy, and it is expected that the rapid development of modern coal chemical industry during the 14th five-year Plan period, the transformation of oil reduction and enhancement in the refining and chemical industry, and the capacity replacement of the iron and steel industry will lead to a steady growth in demand for air separation equipment, and the company may continue to benefit. According to the company's prospectus, the company began to advance customer payments through "contractual liabilities" in 2020.
Accounting, according to the contract liability account, as of September 30, 2022, the balance of customers received in advance was 900 million yuan, an increase of 34.35% over 22H1, or due to the increase in on-hand orders and good customer performance. 3. The company's investment project Hangzhou plant has begun construction, or faster to make up for the capacity gap caused by the demolition of the Deqing plant. The company's fund-raising project "annual output of 15 sets of large-scale cryogenic equipment intelligent manufacturing project" plans to build a factory in Hangzhou, forming an annual capacity of 15 sets of large-scale cryogenic equipment products, which has been put into construction; according to the company's prospectus, by the end of June 2022, the company is under construction with a project amount of 58.8628 million yuan, which is an annual production capacity of 15 sets of large-scale cryogenic equipment intelligent manufacturing project and R & D center construction project. According to the company's prospectus, one of the reasons for the construction of the Hangzhou plant is to make up for the shortage of production sites and capacity bottlenecks caused by the land acquisition and storage of Fosda Gas, a subsidiary of the company in Deqing City, which was agreed to be vacated before November 30, 2022, and its early construction may enable the company to shorten the time constrained by the above problems.
Comparison with listed companies in the same industry: the company mainly provides cryogenic equipment products and corresponding solutions; according to the similarity of business, Hangzhou oxygen shares, Zhongtai shares and Shudao equipment are selected as comparable listed companies. From the perspective of comparable companies, the average income in 2021 is 4.939 billion yuan, PE-TTM (excluding negative values, arithmetic average) is 22.61X, and sales gross profit margin is 19.23%. Comparatively speaking, the company's revenue scale is lower than the industry average, but the gross profit margin is higher than the industry average.
Risk hint: companies that have started the inquiry process still have the possibility of not being listed due to special reasons, the company content is mainly based on prospectuses and other public materials, and the selection of listed companies in the same industry is not accurate. Risk, content data selection may have interpretation deviation, specific listed company risk is displayed in the text content, and so on.