Guangli Technology raised 400 million yuan in the current bond conversion. After deducting the issuance fee, it will be used for R&D and industrialization projects for ultra-precision high-rigidity air spindles. The listing date is May 29.
A leading domestic scribing machine that has successfully transformed. The company started with the coal safety monitoring equipment business and has now achieved a leading position in the industry. As coal production and sales have stabilized and the growth rate of the main business has clearly slowed down. Since 17, the company has successively acquired three overseas semiconductor parts companies, British LP, LBP, and Israeli ADT, which have entered the semiconductor scriber field, and successfully achieved the localization of semiconductor scribers through the establishment of a subsidiary in China, Guangli Ruihong, which has exchanged technology and production with overseas companies. The core components, air spindles, and blade consumables are also about to be mass-produced domestically. A company that localizes machines. Revenue growth in the company's main safety monitoring equipment business has clearly slowed in the past few years, and the scale has remained around 300 million. In contrast, the semiconductor business revenue has grown rapidly, accounting for more than 50%, making it the company's largest business segment. In terms of profitability, the gross margin of coal safety monitoring equipment is around 70%, and the gross margin of semiconductor equipment is around 40%, because of the rapid increase in the share of semiconductor equipment revenue, which has led to a decline in the overall gross margin; in terms of cost ratio, the company's sales expenses to accelerate the expansion of the semiconductor business have increased markedly, and the management expense ratio has declined markedly after the merger and acquisition is completed, while the company continues to maintain high investment in R&D in order to maintain strong competitiveness, and the R&D expense ratio of the company has further increased after entering the semiconductor business. As a result, the company's ROE has declined in recent years.
There is plenty of room for domestic alternatives to semiconductors, and new coal equipment is expected to be released. The overall semiconductor equipment market concentration is high, overseas giants occupy a high share, and scribing machines are no exception. Currently, more than 70% of the global dicer market is occupied by Japanese companies such as Disco and Tokyo Seimitsu. The above companies also occupy the main market share of air spindles, the core components of the dicter; while the three overseas subsidiaries acquired by the company have accumulated a certain amount of accumulation in the semiconductor scribing machine field, whether at the technical or customer level, through close technical exchanges with them. At present, the company has actively localized scribing machines through close technical exchanges with them. At present, they have formed a number of series of quantitative components, core components, and core components. Air spindles and consumable blades will also form production, increasing profitability while driving accelerated revenue growth. In terms of traditional main business, the country has proposed a clear timeline for intelligent coal mines. In this context, the company's new product, smart drilling rigs, is expected to be sold in batches, becoming a new growth point for traditional businesses. According to Wind's consistent forecast, the company's estimated net profit for 23/24 was 102 million/134 million, respectively, and the corresponding PE was 77.62X/59.08X respectively.
Valuations are at a high level since listing, and stock price flexibility and institutional attention are fair. Judging from the valuation, the company's latest closing price corresponds to PE (TTM) of 118X, which is the highest since listing. Precision electronics, which is the target of semiconductor back-end equipment, was selected as a comparison. The current PE (TTM) is 103X, and the company's valuation is too high. The company's current A-share market value is 7.9 billion yuan. The stock price flexibility is good. There are 9 holding institutions in the annual report, and the institutional attention is fair.
Fair price protection is good, and debt bottom protection is weak. The interest rate terms for optical power conversion bonds are above average, and the additional terms are in line with the rules. Based on the calculation of the closing price of the corresponding company on May 26, the average price conversion price is 104.99 yuan, which has good affordability protection; under the assumption in this article, the value of pure debt is 74 yuan, YTM is 3.35%, and debt bottom protection is weak.
The listing price is expected to be over 130 yuan. Guangli Convertible Bonds are rated A+, and the latest price is 104.99 yuan. There are few reference targets in the bond conversion market. Considering scarcity and the company's good fundamentals, it is estimated that the conversion premium rate on the first day of the Guangli Convertible Bonds listing will be over 30%, and the listing price is over 130 yuan. Due to its small scale, speculation is not ruled out.
Risk warning: localization falls short of expectations; loss of goodwill