Key points of investment

Next Tuesday (January 16), a company listed on the Main Board, “Beizi Technology” will ask for a quote.

Beizi Technology (603082): The company is mainly engaged in R&D, design, manufacture and integration of intelligent logistics systems centered on automated three-dimensional warehouses. The company achieved operating income of 1,109 billion yuan/1,336 billion yuan/1,587 billion yuan respectively; YOY was 42.69%/20.54%/18.79%, and a three-year compound annual growth rate of 26.89%; realized net profit to mother of 79 million yuan/116 million yuan/131 million yuan, YOY was 81.15%/46.19%/12.78%, and the three-year compound annual growth rate of net profit returned to mother was 44.01%. In the latest reporting period, from January to September 2023, the company achieved operating income of 1,375 million yuan, a year-on-year change of 18.64%; net profit to mother was 120 million yuan, a year-on-year change of 32.04%. According to preliminary forecasts, the company is expected to achieve a net profit range of about 150 million yuan to 178 million yuan for the full year of 2023, a change of 14.88% to 36.32% over the same period last year.

Investment highlights: 1. Relying on its holding stock in Northeast China, the company has established strong technical advantages in intelligent logistics system integration, and has the largest global market share in the field of intelligent logistics system segments for chemical fiber filament rolling operations. The controlling shareholder of the company is Beiji Institute, founded in 1954. The indirect controlling shareholder is the China National Machinery Institute, and the actual controller is the State Council's State-owned Assets Administration Commission; most of the management and core technical personnel are senior engineers at Beiji Institute. The logistics division of the company's business predecessor, Beiji Institute, was a scientific research institution that studied warehousing and logistics technology earlier in China. Since the 70s of the last century, it has been committed to the development and application of automated warehousing and logistics technology, and participated in the construction of the first automated three-dimensional warehouse in China. Deeply involved in the logistics field for more than 40 years, based on self-developed logistics equipment, control and software systems, the company has accumulated strong integrated system integration capabilities; it has now grown into a leading enterprise in the field of logistics warehousing system integration, especially in the field of chemical fiber; according to the China Textile Machinery Association, the domestic and global market share of the company's intelligent logistics system for filament rolling operations in 2020-2022 exceeded 80% and 50% respectively, ranking first in domestic and foreign market share. 2. The company has rich customer resources, mainly large-scale projects, and strong cost control capabilities. With years of experience in control and software system development and warehousing and logistics system integration, the company has gradually accumulated a number of high-quality customer resources, including China Jushi, Mengniu Dairy, Yili Co., Ltd., Wuliangye, Chia Tai Group, Fangtai Cookware, etc.; the products have been widely used in more than 30 industries such as chemical fiber, glass fiber, food and beverage, and household appliances. Because the company can quickly form customized solutions for different logistics scenarios and needs, most of its business is mainly large-scale intelligent logistics system projects, with large individual projects, many long-term cooperative customers, and strong overall cost control capabilities.

Comparison of listed companies in the same industry: Considering business and product types, Robotics, Nuoli, Dongjie Intelligence, Today International, Lanjian Intelligence, Imatsu Intelligence, Kejie Intelligence, and Kunchuan Smart were selected as comparable listed companies of Beizi Technology. Looking at the comparable companies mentioned above, the average revenue scale in 2022 was 2,383 billion yuan, and the gross sales margin was 22.19%; the comparable PE-TTM (arithmetic average/excluding negative and highest values) was 30.98X; in comparison, the company's revenue scale and gross margin were lower than the average of comparable companies in the industry.

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.