Key points of investment

Next Monday (November 27), “Yongda Shares”, a company listed on the Main Board, asks for a quote.

Yongda Co., Ltd. (001239): The company is mainly engaged in the design, production and sales of metal structural parts for large-scale special equipment; the company achieved operating income of 776 million yuan/1,003 million yuan/833 million yuan in 2020-2022, YOY in that order was 92.33%/29.26%/-16.92%, with a compound annual growth rate of 27.35% in three-year operating income; achieving net profit of 62 million yuan/89 million yuan/93 million yuan, YOY in that order of 434.79%/43.54%/ 4.95%, a compound annual growth rate of 100.46% of net profit attributable to the mother in three years. In the latest reporting period, the company's revenue from January to September 2023 was 598 million yuan, up 1.67% from the same period last year; realized net profit was 62 million yuan, down 1.37% from the previous year; the company is expected to achieve net profit of about 87 million yuan to 105 million yuan in 2023, a year-on-year change of -6.83% to 12.84%.

Investment highlights: 1. The company has outstanding technical advantages in the field of tunnel excavation and engineering lifting, and has accumulated many first-stage experiences. The company began to lay out the fields of tunnel excavation and engineering lifting in 2016, and now has certain advantages. Together, the two contribute about 70% of revenue. In the field of tunneling, the company has cooperated with Tiejian Heavy Industries since 2016. From pipe blades to shields, to cutterheads and support tubes, the complexity of the cooperative products has gradually increased; the shield structural parts produced by Tiejian Heavy Industries have been used in the “Dream” tunneling machine with the largest excavation diameter in the world so far; in 2021, the company's market share of shield machine sales converted by shield sales was 17.68%. In the field of engineering lifting, the company has the capacity to produce extremely large tower cranes of 2,200 tons or more, which are difficult, and participated in the construction of many epoch-making large-scale tower cranes of Zhonglian Heavy Industries, including the largest wind electric boom tower crane to date, the world's first high-rotation oversized tower crane exceeding 10,000 tons, and currently the world's largest tower crane. 2. The company is rich in customer resources, and ranks first in terms of value among similar purchases from many well-known customers. After more than ten years of deep cultivation, the company has established stable cooperative relationships with many well-known downstream enterprises.

In the field of tunnel excavation, the main customer is Tiejian Heavy Industries, one of the three leading tunnel boring machines. In the field of wind power, the company sold shields in 2022 accounted for 40%-50% of its purchases of similar products; in the field of engineering lifting, customers covered Zhonglian Heavy Industries and Sany Group, which were among the top 10 construction machinery mainframe companies in the world in 2022. Among them, structural parts of 2,200 tons of oversized tower cranes supplied to Zhonglian Heavy Industries accounted for more than 90% of their purchases of similar products; in the wind power sector, customers covered Jinfeng Technology, Yuanjing Energy, and Mingyang Xinzeng in 2022 The top six wind turbine manufacturers in hoisting capacity. According to information from customers quoted by the prospectus company, the company ranked first in terms of value in similar purchases of Railway Construction Heavy Industries, Zhonglian Heavy Industry, Mingyang Intelligence, Guodian United Power, Xiangdian Co., Ltd., and Jiangsu CRRC Motor.

Comparison of listed companies in the same industry: According to the similarity of main products and revenue structures, Xinqianglian, Zhenjiang Co., Ltd., Haiguo Co., Ltd., Jixin Technology, and Taisheng Wind Energy were selected as comparable listed companies of Yongda Co., Ltd. Judging from the comparable companies mentioned above, the comparable PE-TTM (arithmetic average) is 28.67X; the average revenue scale of comparable companies is 2,360 billion yuan, and gross sales margin is 18.65%; in comparison, the company's revenue scale falls short of the average of comparable companies, and the gross margin level is higher than the average of comparable companies.

Risk warning: There is still a possibility that companies that have begun the inquiry process will not be able to go public due to special reasons; company content is mainly based on the content of prospectus and other public information; there is a risk that the selection of listed companies in the same industry is not accurate enough; there may be interpretation deviations in the selection of content data. The specific risks of listed companies are shown in the text.