It has been deeply involved in the injection molding machine industry for 17 years and has deep technical strength. Terry Machinery Co., Ltd. is an injection molding machine manufacturer and solution service provider. The product line covers six major fields: logistics, pharmaceutical & food packaging, underground pipe gallery & ground pipe fittings, auto parts & home appliances, industrial and civilian products, electronic products & office automation.

The company was founded in 2006 with a registered capital of about 296 million yuan and was listed in 2017. The company ranked fourth in the industry in terms of revenue and net profit in 2022.

The company's injection molding machine series products are rich and widely used. Terry Machine's injection molding machines are divided into NEO series and Dream series. The NEO series includes three-board machines, two-board machines, motors, and multi-component injection molding machines. The clamping forces are about 90-1050 tons, 550 to 7000 tons, 60-1400 tons, and 1120 to 3520 tons; the Dream series includes multi-component multi-function injection molding machines and hydraulic precision elbow rod injection molding machines, with clamping forces of about 170 to 850 tons and 100 to 4000 tons, respectively. It is widely used in auto parts, household appliances, 3C, packaging and logistics industries.

Full servo motor precision control, leading the way in high-precision and high-efficiency injection molding technology. The company's electric injection molding machine has full servo motor precision control, mold clamping and injection position accuracy of 0.01mm, and pressure control accuracy of ±1 bar. It can achieve 0.1% injection weight repetition accuracy control, and has the most advanced energy recovery system. Electric injection molding machines accounted for 17.53% of revenue in 2022. High-end all-electric motors have now formed cooperative relationships with BYD, Hella, etc.

Start an integrated high-end die-casting equipment project and gradually launch a new type of die-casting machine. It is estimated that by 2023 and 2025, China's die-casting machine market will exceed 20 billion and 30 billion, respectively. At present, the company's first 4500T three-plate direct pressure cold chamber die-casting machine for automobile structural parts (suitable for automotive structural parts, such as shock absorption towers, subframes, longbeams, beams, A.B columns, etc.) will soon be launched; at the same time, large-scale and oversized die-casting machine products such as the 3500T three-plate elbow rod type and 7200T three-plate direct pressure cold chamber die-casting machine for new energy vehicles are also in the process of development.

Fund-raising projects help integrated intelligent manufacturing bases, and the global market share of injection molding machines is expected to increase. The global injection molding machine market space in 2022 is about 15.330 billion US dollars. China's injection molding equipment production has ranked first in the world for more than ten years, accounting for about 70% of global output. In 2022, the company's injection molding machine product revenue scale was 1,186 billion yuan, accounting for only 1.15% of the global market share. In the first half of 2023, the company plans to issue convertible bonds to raise capital, of which 280 million will be used for construction projects with an annual output of 29 die-casting machines and 5,000 injection molding high-end equipment. The total investment of the project is 798 million, which is progressing smoothly. The market share will rise to around 2.4% after all of the additional production capacity of the fund-raising investment is absorbed. The output value of the new equipment after full delivery can reach about 280 million (die-casting machines) and 2,557 million (high-end injection molding equipment).

Investment suggestions: The company is expected to achieve revenue of 9.72, 12.67 and 1,767 billion yuan in 2023-2025, respectively, and net profit of 1.02, 1.40 and 215 million yuan, corresponding to PE of 29.23/21.39/13.88 times, respectively. First coverage, giving a “recommended” rating.

Risk warning: the risk of macroeconomic fluctuations, the impact of fluctuations in demand in downstream industries on the company's operations, and the risk of increased market competition.