Main points of investment
There will be an inquiry for Future Electric Appliances, a listed company on gem, next Tuesday (March 14).
Future Electric Appliances (301386): the company's main business is the R & D, production and sales of low-voltage circuit breaker accessories. From 2020 to 2022, the company achieved operating income of 461 million yuan / 459 million yuan / 478 million yuan, respectively, and its YOY was 31.40%, 0.55%, 4.12%, respectively, with a compound annual growth rate of 10.81% for three years. Realize the net profit of 97 million yuan / 82 million yuan / 81 million yuan, and the YOY is 59.13%, 15.05%, 2.28%, respectively, and the annual compound growth rate of the net profit of three years is 9.72%. According to the preliminary forecast, the company's net profit from January to March in 2023 is 14 million yuan to 16 million yuan, an increase of 0.75% to 15.14% compared with the same period in January to March 2022.
Investment highlights: 1, the company is located in the middle and high-end product market of low-voltage circuit breaker accessories, has become the leader in the field of molded case circuit breaker accessories, and has established a long-term and stable cooperative relationship with the main backbone enterprises in the low-voltage electrical appliance industry. The company has long ploughed the field of low-voltage circuit breaker accessories and built a rich product supply system; the products include molded case circuit breaker accessories, frame circuit breaker accessories and intelligent terminal appliances, totaling tens of thousands of specifications and models. Up to now, the company has established a long-term and stable cooperative relationship with Zhengtai Electric, Liangxin shares, Changshu switch, Delixi, Tianzheng Electric, ABB and other well-known backbone enterprises in the low-voltage electrical appliance industry at home and abroad (with an income of more than 300 million yuan). During the reporting period, the sales revenue from the above-mentioned enterprises accounted for more than 50%. In the field of molded case circuit breaker accessories, according to the statistics of China Electrical Appliance Industry Association, the total output and sales volume of the company's related products ranked first among similar enterprises in the country from 2017 to 2021, with a market share of more than 50%. 2. At present, the proportion of molded case circuit breaker accessories in the main engine factory of molded case circuit breakers is relatively low, and it is expected that the company's molded case circuit breaker accessories business still has a lot of room for development under the acceleration of the intelligent transformation of the low voltage distribution market. Molded case circuit breakers belong to distribution appliances, which are generally used for on-off or protection of branch circuits. Compared with frame circuit breakers used as trunk circuit switches (the proportion of various accessories is 1:1), the proportion of molded case circuit breaker accessories is lower. At present, the proportion of molded case circuit breaker accessories selected by the main engine factory of molded case circuit breakers is only 9.00%. However, from the functional point of view, the molded case circuit breaker accessories can be combined with the circuit breaker to increase the functions of state diagnosis, signal sensing and a variety of control and protection, which can effectively improve the remote control, centralization and automation level of the molded case circuit breaker. It has certain practicability. According to the company's prospectus, the average annual compound growth rate of the low-voltage intelligent distribution market from 2020 to 2025 is expected to reach 55.35%. It is expected that with the acceleration of the intelligent transformation of the low-voltage distribution market, the demand for molded case circuit breaker accessories in the downstream market is expected to increase; and the company as a domestic leading manufacturer in the field of molded case circuit breaker accessories is expected to benefit.
Compared with listed companies in the same industry: the company focuses on the field of low-voltage circuit breaker accessories; at present, there are no domestic listed companies that are consistent with the company's business content and product structure, if we consider the similarity of customer structure and raw material structure, select Xinhongtai and Luokai shares as comparable listed companies of electrical appliances in the future. Judging from the above comparable companies, the average income in 2021 is 919 million yuan, the comparable PE-TTM (arithmetic average) is 40.03X, and the sales gross profit margin is 25.75%. In comparison, the revenue scale of the company is lower than the industry average, and the sales gross profit margin is in the middle-high range of the industry.
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.