Key points of investment
Next Monday (April 29), a new GEM stock “Reddy Smart Drive” will be purchased.
Reddy Smart Drive (301596.SZ): The company's main products include electromagnetic brakes, precision transmission parts and harmonic speed reducers, etc., which are widely used in CNC machine tools, robots, elevators and other fields. In 2021-2023, the company achieved operating income of 567 million yuan/587 million yuan/585 million yuan, YOY was 38.33%/3.57%/-0.32%, and the three-year compound annual growth rate of operating income was 12.61%; net profit to mother was 65 million yuan/75 million yuan/97 million yuan, YOY was 38.26%/15.22%/28.98%, and the three-year compound annual growth rate of net profit to mother was 27.13%. According to the company's management forecast, the company expects revenue of 1.30-142 million yuan from January to 2024, with a year-on-year growth rate of -2.87% to 5.93%; net profit to mother is expected to be 0.22-025 million yuan, a year-on-year growth rate of -4.64% to 8.40%.
Investment highlights: 1. The company's core main product, electromagnetic brakes, has achieved a certain market position, supporting well-known downstream manufacturers such as Huichuan Technology, Eston, and Hitachi Elevator; among them, the revenue share of servo brakes with high added value continues to grow, and at the same time, the company has formed technical reserves for products such as wind power brakes and rail transit brakes. 1) The company has been deeply involved in electromagnetic brakes for many years, and its products have been recognized by well-known downstream companies such as Huichuan Technology, Eston, Hitachi Elevator, Otis Elevator, and Toshiba Elevator; the products have achieved a certain market position in China, and the company estimates that its domestic market share is 1.56%. 2) The electromagnetic brake products that the company has mass-produced include elevator brakes, general purpose brakes, and servo brakes. Among them, servo brakes have high added value and high gross margin. The revenue share was increasing during the reporting period, and since 2022, the company has obtained mass production orders from Panasonic Electric from Japan and Siemens from Germany. Sales of servo brakes increased 109.73% in 2023, and the sales scale is expected to grow further in the future. 3) In addition to the products already mass-produced, the company has formed technical reserves for products such as maintenance-free brakes, rail transit brakes, AC brakes, etc.; among them, maintenance-free brakes can be used in port motors, fans, tower cranes, etc., and wind power brakes cooperated with Huichuan Technology have entered the sample testing stage; rail transit brakes and electric power brakes have achieved sample testing in the urban rail and subway fields and new energy vehicles respectively. 2. The company's harmonic reducer products implement differentiated competitive strategies and are deeply involved in the field of collaborative robots. Currently, they have been introduced to more than 60 customers. The company has been accumulating in the field of harmonic speed reducers for many years. Since 2012, it has been foundry harmonic reducer wheels for Israel's Flextronics, established a harmonic reducer research group from scratch in 2015, began sample testing in 2019, and mass production of products was achieved in 2021.
Unlike domestic leaders, the company is deeply involved in the collaborative robot segment in harmonic reducer products, and has already formed supplies for Dacheng robots, Shanghai Xinsong robots, and Jingke (Shenzhen) robots in this field. Currently, there are more than 60 harmonic reducer customers, and the revenue scale is expected to continue to grow as downstream customer recognition increases. In addition, the company has also achieved technical reserves for planetary speed reducers. Currently, it has carried out technical exchanges and sample tests with companies such as Tiantai Robotics, KUKA Robotics (Guangdong), and Hangzhou Chengtian, which is expected to strengthen the product layout in the robotics field.
Comparison of listed companies in the same industry: The company is mainly engaged in research, production and sales of key components of automated equipment transmission and braking systems. Considering that there are no existing A-share listed companies that are completely consistent with the company's business, it selected A-share listed companies similar to the company in terms of upstream raw materials, business models and downstream customers, as comparable companies with Reddy Smart Drive. Looking at the comparable companies mentioned above, the average revenue scale (TTM) of the industry is 707 million yuan, the comparable PE-TTM (excluding outliers and arithmetic average) is 52.34X, and the gross sales margin is 28.43%; in comparison, the company's revenue scale is lower than the industry average, but the gross sales margin is 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.