Key points of investment
This Thursday (January 18), a GEM listed company “Huayang Smart” asked for a quote.
Huayang Intelligence (301502): The company is mainly engaged in R&D, production and sales of micro motors and application products. The main products include micro motors and components and precision drug delivery devices. In 2020-2022, the company achieved operating income of 396 million yuan/499 million yuan/463 million yuan respectively; YOY was 25.81%/25.97%/-7.04%, and the three-year compound annual growth rate of operating income was 13.79%; realized net profit to mother 60 million yuan/65 million yuan/63 million yuan, YOY was 29.90%/7.96%/-2.57%, and the three-year compound annual growth rate of net profit returned to mother was 10.97%. In the latest reporting period, from January to September 2023, the company achieved operating income of 366 million yuan, a year-on-year change of -0.35%; net profit to mother was 48 million yuan, a year-on-year change of 0.92%. According to preliminary forecasts by the company's management, the company is expected to achieve a net profit range of about 61 million yuan to 66 million yuan for the full year of 2023, a change of -3.93% to 3.94% over the same period last year.
Investment highlights: 1. Micromotor is widely used downstream. Currently, the company's micro motor and component products have good competitiveness in the air conditioning segment. Micromotor has a broad downstream application market and can be used in various fields such as electrical appliances, automobiles, industrial control, medical devices, wearable devices, robots, drones, and smart homes. Since its establishment, the company has been committed to the research and development of micro motors and application products, and has now established a good competitive advantage in the air conditioning segment. On the one hand, the company's customer resources are relatively excellent. It has now entered the micro motor and component supply chain of well-known household appliances such as Midea, Hisense, Haier, Gree, and Oaks, and the downstream covers about 80% of the domestic air conditioning market. On the other hand, the company's product layout is relatively complete, and on the basis of micro motors, it is actively expanding air conditioning pump and air deflector motion component products. 2. The company is an earlier-starting electronic injection pen R&D and manufacturer in China. It has a mature layout for various indications and has abundant reserves in the research pipeline. Electronic injection pens have the advantages of precise control, microinjection, stable thrust, one-click injection, etc., and can effectively reduce patients' fear, and can reduce patients' long-term usage costs because they use replaceable cartridges for drug filling; chronic disease medication, high-cost targeted drugs, high-end cosmetic needles, etc. nurture demand for electronic injection pens. The company is the earliest electronic injection pen R&D and manufacturer in China. Relying on common technology in the field of precision micro motors and transmission, the company launched an electronic injection pen in 2013, then successfully achieved mass production and sales to Jinsai Pharmaceutical, the largest domestic genetically-engineered pharmaceutical company and Asia's largest producer of recombinant human growth hormone, and was recognized by well-known biopharmaceutical companies such as Howson Pharmaceuticals and Xinlitai. Up to now, the company's precision drug delivery devices have been successfully used in the treatment of diseases such as short stature, diabetes, and osteoporosis, and there are many products under development in the fields of various novel diabetes drugs, infertility, Parkinson's, rheumatoid, obesity, and ankylosing spondylitis.
Comparison of listed companies in the same industry: Taking into account aspects such as business and product types, Jiangsu Raleigh, Collier, and Xiangming Intelligence were selected as comparable listed companies of Huayang Intelligence. Looking at the comparable companies mentioned above, the average revenue scale in 2022 was 1,575 billion yuan, and the gross sales margin was 22.29%; comparable PE-TTM (arithmetic average/excluding outliers) was 35.99X; in comparison, the company's revenue scale was lower than the average of comparable companies in the industry, and the gross margin was higher 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.