Key points of investment
Next Tuesday (March 5), a GEM listed company “Jundingda” will ask for a quote.
Jundingda (301538): The company focuses on the design, R&D, production and sales of polymer modified protective materials. The main products include functional protective sleeves and functional monofilaments. In 2021-2023, the company achieved revenue of 467 million yuan/522 million yuan/644 million yuan respectively; YOY was 43.14%/11.90%/23.28%, and the three-year compound annual growth rate of revenue was 25.46%; net profit to mother was 99 million yuan/114 million yuan/140 million yuan, YOY was 39.54%/15.90%/22.61%, and the three-year compound annual growth rate of net profit to mother was 25.63%. According to the company's management's preliminary forecast, the company's revenue for January-January 2024 is estimated to be about 145 million yuan to 170 million yuan, up 21.72% to 42.71% year on year; net profit from January to January 2024 is estimated to be about 26 million yuan to 34 million yuan, an increase of 20.16% to 57.13% year on year.
Investment highlights: 1. The company has been deeply involved in the field of polymer modified protective materials for 20 years and is a leader in the functional protective casing segment in China. The company's main product, functional protective casing, is still dominated by foreign-funded multinational companies such as Huimen, Delfingen, and Renazhi, and only a few domestic companies have achieved a large scale of business. In terms of product quality, the company's product performance indicators are comparable to similar product levels from leading foreign manufacturers, and some key technologies are advanced and original in the industry, and have strong product competitive advantages. At the same time, the company has established six major production bases in Shenzhen, Dongguan, Kunshan, Wuhan, Chongqing and Jiangmen, which helps it respond quickly to customer needs and has better customer service capabilities compared to leading foreign companies. With the above advantages, the company has rich high-quality customer resources, and has established long-term and stable cooperative relationships with world-renowned component suppliers such as Ambofol, Sumitomo Electric, BYD, Gates Industries, Times Electric, and Tyco Electronics. The products have successfully entered the supply chain of leading manufacturers in the automotive field of automobiles, construction machinery, rail transit, communication electronics, etc.; specifically, SAIC-GM, Dongfeng Honda, Dongfeng Honda, Dongfeng Nissan, BYD, Tesla, etc. in the field of construction machinery, and CRRC Group in the rail transit sector, etc., and Morse, Tefa Information, etc. in the field of communication electronics. 2. During the reporting period, the company successfully developed new energy vehicle applications and became one of the core suppliers of leading NEV companies such as BYD. As the automobile industry changes in the direction of electrification, the market application space for functional protective sleeves is expected to be further deepened. Unlike fuel vehicles that widely use low-voltage wiring harnesses, the new three-electric systems added to new energy vehicles are mainly interconnected through high-voltage wiring harnesses, so the demand for functional protective sleeves has brought a large incremental space. The company successfully entered the NEV application market with the brand advantages established in the early days of traditional automobiles. In 2022, the company's NEV products achieved revenue of 104 million yuan, and a compound growth rate of 114.52% in the past three years. At the same time, the company's products have entered the supply chain of new energy OEMs such as BYD, and have been used in various models such as BYD's Qin, Tang, Song, Yuan, E5, E6, K9, Qin Pro, and Han EV. According to the company's inquiry letter, BYD's procurement of products accounted for more than 50% of similar purchases; corresponding, sales revenue from BYD also increased from 2.2408 million yuan in 2020 to 386.701 million yuan in 2022 and more than 30 million in the first half of 2023; since 2022, BYD has already reached more than 30 million yuan Become the company's number one customer.
Comparison of listed companies in the same industry: Bide Technology, Tianpu Co., Ltd., Wall Nuclear Materials, and Chaojie Co., Ltd. were selected as comparable listed companies in Jundingda. Looking at the comparable companies mentioned above, the average revenue of comparable companies from the fourth quarter of 2022 to the third quarter of 2023 was 1,300 billion yuan. Comparable PE-TTM (excluding Bide Technology, Tianpu Shares, Science Innovation Source, and Chaojie Shares/Arithmetic Average, which have high price-earnings ratios due to fluctuations in net profit) was 21.53X, and the gross sales margin was 34.68%. In comparison, the company's revenue scale is below the average of comparable companies, and the gross sales margin is in the middle to high range of the same industry; however, there are differences between the company and the comparable listed companies mentioned above in terms of main business direction, product structure, etc., and comparability may be relatively limited.
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.