Key points of investment
Next Tuesday (March 12), a company listed on the main board, “Ping An Electric” will ask for a quote.
Ping An Electric (001359): The company specializes in the R&D, production and sales of mica insulation materials, glass fiber cloth and new energy insulation materials. The products are widely used in wires and cables, household appliances, new energy vehicles, energy storage systems, wind power, photovoltaics and rail transit. The company achieved revenue of 887 million yuan/842 million yuan/921 million yuan respectively in 2021-2023; YOY was 30.84%/-3.93%/9.42%, and the three-year compound annual growth rate of 11.21%; realized net profit to mother 122 million yuan/132 million yuan/165 million yuan, YOY was 78.01%/8.57%/24.54%, and the three-year compound annual growth rate of net profit to mother was 34.01%. According to the company's management's preliminary forecast, the company's revenue for January-January 2024 is expected to be about RMB 210 million to RMB 240 million, up 5.89% to 21.02% year on year; net profit to mother is expected to be about RMB 35 million to RMB 40 million from January to January 2024, up 8.40% to 23.89% year on year.
Investment highlights: 1. The company is one of the leading enterprises in the global mica insulation materials industry. It has a relatively complete supporting supply capacity in the mica insulation materials industry chain, and maintains a leading market share in the industry. The company has been deeply involved in the field of mica insulation materials for nearly 10 years, and has now formed a relatively complete product supply chain. It has complete solution advantages from raw materials such as mica paper and glass fiber cloth, to products such as fire-resistant mica tape, mica boards, heating parts, and new energy insulation materials. With rich product types and stable product quality, the company has established a high level of industry popularity in the mica insulation material market with the “PAMICA” brand. It has become one of the leading companies in the global mica insulation material industry. According to estimates in the inquiry letter, during the reporting period from 2019 to 2022, the domestic market share of the company's mica insulation products was about 12.97%-17.07%, and the global market share was about 5.16%-5.84%. 2. The company actively explores application fields such as new energy vehicles and power battery modules, and has successfully achieved batch supply of new energy insulation materials to leading customers such as Ningde Times and Xiaopeng Motors.
Based on the technology accumulated in the field of mica insulation materials, the company actively develops new energy insulation materials for the fields of new energy vehicles, power battery modules, and energy storage systems; this material has functions such as effectively preventing heat diffusion between battery modules, insulation between modules, and cell temperature monitoring. According to the fund-raising project information disclosed in the prospectus, the company plans to increase the total production capacity of new energy security parts by 4068 tons/year through the “Ping An Electric Wuhan Production Base Construction Project” and the “Hubei Ping An Electric Technology Co., Ltd. Tongcheng Production Base Construction Project”, which is about 3 times the annual production of new energy insulating materials in 2022; it is expected that new energy insulation materials will become one of the company's development focuses. According to developments during the company's reporting period, NEV insulation materials entered mass production in 2021 and have successfully achieved stable batch supply to leading customers such as Ningde Times, Xiaopeng Motors, Honeycomb Energy, Samsung SDI, and Tesla. From 2020 to 2022, sales revenue from NEV products increased from 11.4 million yuan to 61.79 million yuan, and the revenue share also increased from 1.71% to 7.36%.
Comparison of listed companies in the same industry: Kuncai Technology, Dongcai Technology, Bofei Electric, and Jufeng Co., Ltd. were selected as comparable listed companies of Ping An Electric. 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 1,417 billion yuan. The comparable PE-TTM (excluding Kuncai Technology, which has a high price-earnings ratio due to fluctuations in net profit, and Jufeng Shares of the New Third Board) was 29.99X, and the gross sales margin was 30.70%. 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.
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.