Key points of investment
Next Monday (January 15), a GEM listed company “Meixin Technology” will subscribe. The company uses pricing to distribute it. The issue price is 36.51 yuan.
Meixin Technology (301577.SZ): The company focuses on the design, development, production and sales of magnetic components. Its products are widely used in network communications, industrial power supplies and new energy vehicles. Among them, the core products are network transformers. In 2020-2022, the company achieved operating income of 339 million yuan/466 million yuan/487 million yuan, YOY was 17.22%/37.52%/4.55%, and the three-year compound annual growth rate of 19.01% of operating income was 19.01%; net profit to mother was 46 million yuan/64 million yuan/67 million yuan, YOY was 112.71%/40.04%/4.23%, and the three-year compound annual growth rate of net profit to mother was 45.89%. In the latest reporting period, 2023Q1-3 achieved operating income of 326 million yuan, a year-on-year decrease of 7.58%, and net profit to mother of 40 million yuan, a year-on-year decrease of 20.46%. According to the company's preliminary forecast, the company is expected to achieve net profit attributable to shareholders of the parent company in 2023 of $55.55 million to $59.50 million, a change of -16.76% to -10.77% compared to the 2022 forecast.
Investment highlights: 1. The company is leading the network transformer industry and is one of the few companies that can mass-produce 10 Gigabit Ethernet products; at the same time, the company has a good layout for the forward-looking development of network transformers. Network transformers are one of the essential basic components of network communication equipment. Since its establishment, the company has been deeply involved in network transformers. Currently, 2.5G-10G high-speed Ethernet transformers have been mass-produced. Among them, 10G products are one of the highest network transformers that can be mass-produced in the industry. According to the company's second round of inquiry response data, the company's domestic market share of network transformers in 2021 was about 3.93%, based on the market share of mainstream enterprises in the industry, the company's market share may rank first in the country. In addition, the company continues to forward-looking layout in the field of network transformers, which is expected to consolidate its competitive advantage; on the one hand, the company is upgrading products in the direction of high speed, and 25G Base-T products have now entered the sample stage; on the other hand, chip inductors are expected to replace some traditional network transformers due to their performance advantages, and the company has become one of the first manufacturers of traditional network transformers to achieve mass production of chip inductors and has the highest production capacity. The future is expected to benefit from increased demand for chip inductors. 2. The company's business expansion in new application fields has achieved certain results, and research and development of new products in the fields of automobiles and energy storage continues to advance. Based on the accumulation of magnetic component products such as network transformers, the company developed magnetic component products such as plate transformers and wire wound common mode inductors in 2017, expanding the application fields to new energy vehicles (can be applied to BMS systems, OBC systems, DC-DC and other electronic devices), industrial power supplies, etc. The sales revenue of corresponding power magnetic components and other products grew rapidly from 121 million yuan in 2020 to 150 million yuan in 2022, and the CAGR reached 162.41%. In the future, the company will further deepen its layout in the automotive and energy storage fields, and many new products are progressing well; in research projects, chip drive transformers and integrated inductor products in the automotive sector have entered the promotion stage. High anti-saturation common mode filter inductors, magnetic component integrated modules, and DC output differential mode inductor products have all entered the sample stage; in the field of energy storage battery management systems, energy storage BMS signal transformers and flat wire vertical wound inductor products have entered the promotion stage and sample stage respectively.
Comparison of listed companies in the same industry: Shunluo Electronics, Mingpu Optoelectronics, Colic, and Jingquanhua, which are in the same industry and have similar main business and customer types, were selected as comparable companies of Meixin Technology. Looking at the comparable companies mentioned above, the average revenue scale of the Q1-3 industry in 2023 was 2,891 billion yuan, the comparable PE-TTM (excluding negative values/arithmetic average) was 39.87X, and the gross sales margin was 19.03%; in comparison, the company's revenue scale was lower than the industry average, but the gross sales margin was higher than the industry average.
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.