Main points of investment

This Friday (August 15), there is an inquiry about Jindi shares, a company listed on the main board.

Jindi shares (603270): the company's main business is the research and development, production and sales of precision machinery parts, forming two main products: bearing cages and automotive precision parts. From 2020 to 2022, the company achieved operating income of 632 million yuan / 914 million yuan / 1.097 billion yuan, YOY of 18.67%, 44.62%, 20.01%, 27.23%, respectively, and realized net profit of 110 million yuan / 115 million yuan / 126 million yuan, YOY of 102.44%, 4.63%, 9.45%, and 32.35%, respectively.

During the latest reporting period, 2023H1 achieved an operating income of 574 million yuan, an increase of 5.36% over the same period last year, and a net profit of 90 million yuan, an increase of 17.29% over the same period last year. According to the preliminary forecast, the company is expected to achieve a net profit of 125 million yuan to 138 million yuan from January to September 2023, an increase of 21.21% to 33.82% over the same period last year.

Investment highlights: 1. Relying on the advantages of industrial clusters in Liaocheng, Shandong Province, the company has ploughed the field of bearing cages for many years; at present, it has established a long-term cooperative relationship with eight major bearing enterprises in the world, and occupies a leading position in the field of wind power. Through the new Xin Jindi and Jindi retainer factory established in the early years, the actual shareholder of the company has been ploughing the field of bearing cage for nearly 20 years and has a strong first-mover advantage. at the same time, the company's production base is located in Liaocheng, Shandong, one of the five major bearing industry agglomeration areas in China.

In this context, the company's bearing holder business has expanded steadily and gradually formed a leading position in the field of wind power applications. For the wind power variable paddle bearings with a high degree of localization, the company has entered the supply chain of core domestic manufacturers such as Xinqiang Union, while for the wind power gearbox bearings with a lower degree of localization, the company has successfully become one of the core suppliers in this field through its predecessor's more than 10-year cooperative relationship with eight major bearing enterprises in the world, such as Skyford, Schaeffler, Ensk and so on, helping to improve the domestic permeability. In 2022, the domestic market share of the company's wind power bearing cage has reached 21%, and the global market share has reached 10%. From the perspective of the industry, there are relatively few competitors above the size of the bearing cage market, which may benefit companies and other manufacturers with first-mover advantages. 2. Based on the manufacturing experience accumulated in the field of bearing cage, the company actively arranges the drive system of new energy vehicles, and has successfully entered the supply chain of new energy vehicle manufacturers such as NIO Inc.. In 2015, the company entered the field of automotive precision parts with its own stamping technology in the field of bearing cages, and successfully developed electric drive system components of new energy vehicles in 2016. and achieved a breakthrough in the electric drive system drive motor rotor assembly direction, obtained NIO Inc., Huichuan United power, Inball and other fixed points on cast aluminum rotor assembly, the growth space is significantly expanded. From 2020 to 2022, the company's sales revenue from the electric drive system of new energy vehicles increased from 42 million yuan to 165 million yuan, with a rapid overall growth rate. Up to now, the company has successfully entered the supply system of mainstream automobile manufacturers such as NIO Inc. and Great Wall Motor in the field of new energy vehicles. NIO Inc. Automobile is the company's second largest customer, with sales from NIO Inc. reaching 137 million yuan in 2022, accounting for 12.5% of the company's revenue. 3. The company is supported by downstream customers such as Xinqiang Union, and its dual identity may be beneficial to the stable cooperation between the two sides. According to the company's prospectus, the new shareholders in the 12 months before the company's listing declaration are New Qiang Lian and Aoyuan Investment. as of the date of signing the prospectus, New Qiang Lian and Aoyuan Investment held 4.50% and 2.25% of the company's shares respectively, all of which were on the list of the top 10 shareholders. Among them, New Qiang Lian occupies a leading position in the domestic wind power variable propeller bearings and is the company's wind power cage customer, while Aoyuan Investment is a subsidiary of Xinjiang Goldwind Science & Technology, a global wind power leader. This capital injection reflects the high recognition of the downstream customers and the industry to the company, which is expected to be good for the stability of the company's wind power related business.

Comparison with listed companies in the same industry: in the field of bearing parts, Lixing shares, Wuzhou Spring Festival, and Jinwo shares are selected as comparable listed companies, and in the field of auto parts, then select Hao Neng shares, precision forging technology, Wanliyang, Lauder technology, Quanfeng automobile, Inball, and Jingjin Electric as comparable listed companies. Judging from the above comparable companies, the average revenue scale of comparable companies in 2022 is 2.126 billion yuan, comparable PE-TTM (excluding negative values) is 31.43X, and sales gross profit margin is 17.57%. In comparison, the company's revenue scale is not as large as the average of comparable companies, but the gross profit margin is in the middle and high range of the same 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 interception may have interpretation deviation and so on.