On Thursday (September 21), Shaanxi Huada, a listed company on gem, made an inquiry.

Shaanxi Huada (301517): the company has formed three categories of RF coaxial connectors, low frequency connectors and RF coaxial cable assemblies, which are widely used in aerospace, weapons and equipment, communications and other fields. From 2020 to 2022, the company achieved operating income of 637 million yuan / 756 million yuan / 802 million yuan, YOY of 14.99%, 18.68%, 6.17%, and three-year compound annual growth rate of 13.16%. The net profit of homing was 58 million yuan / 67 million yuan / 65 million yuan, and the YOY was 28.51%, 15.83%, 3.26%, and 12.92%, respectively. During the latest reporting period, 2023H1 achieved an operating income of 464 million yuan, an increase of 6.67% over the same period last year, and a net profit of 46 million yuan, an increase of 21.10% over the same period last year. According to the preliminary forecast, the company expects to achieve a net profit of 63 million yuan to 68 million yuan from January to September 2023, a change of 1.5% to 9.56% compared with the same period last year.

Investment highlights: 1. The company's electrical connector products are concentrated in the field of high reliability, including leading in the field of military RF coaxial connectors and cable assemblies, and leading in gross profit margin. The company, formerly known as the state-owned 853 factory established in 1966, is one of the earliest manufacturers engaged in the production of electrical connectors in China. The company's products cover three categories of RF coaxial connectors, RF coaxial cable assemblies and low frequency connectors, which are mainly used in aerospace, weapons, communications and other highly reliable fields. Among them, the company is a domestic leader in the field of military RF coaxial connectors and cable assemblies, and is the core enterprise of national military RF coaxial connectors. during the reporting period, the products were mainly used in China Electric Power (accounting for more than 35% of the company's revenue during the reporting period), aerospace science and technology, aerospace industry and other large state-owned military industrial groups and subordinate institutes. During the reporting period, the company's gross profit margin was 39.77%, 40.37% and 41.36% respectively, which was better than the peer average of 34.52%, 33.10% and 36.54%. 2. The fund-raising project will expand the production capacity of connectors for 5G communications and satellite Internet, or benefit from the sustainable development of satellite Internet in China. The main products of the fundraising project "industrialization Project of Satellite Interconnection High reliable connection system" include board-to-board high reliable RF connectors and low loss stable phase RF cable assemblies, 1mm spacing high reliable micro-rectangular connectors, 5G ground base stations highly reliable inter-board connectors and cable assemblies, etc. Among them, the inter-board high reliable RF connector and low loss stable phase RF cable assembly are mainly used in the national key construction project Aerospace Science and Technology Group Satellite Project. At present, the product series development has been completed and is expected to be applied in batch. With the completion of the launch and successful networking of satellite Internet experimental satellites in July this year, and the public launch scale of the "G60 star chain" for the first time, China's satellite Internet industry is expected to usher in accelerated development.

Compared with listed companies in the same industry: the company's main business is the R & D, production and sales of electrical connectors; according to the similarity of its main products, AVIC Optoelectronics, Aerospace Appliances, Yonggui Appliances, Laimu shares and Dingtong Technology are selected as comparable listed companies in Shaanxi Huada, but due to the great differences in downstream application scenarios of electrical connector products among companies, we tend to think that the PE comparability of the above companies may be limited. From the above comparable companies, the industry average income (TTM) is 5.65 billion yuan, the comparable PE-TTM (arithmetic average) is 38.32X, and the sales gross profit margin is 32.05%. Comparatively speaking, the revenue scale of the company is lower than the industry average, but the sales 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 interception may have interpretation deviation and so on. The specific risks of listed companies are shown in the text.