Key points of investment
Next Wednesday (June 12), a company listed on the Main Board, “Yongzhen Co., Ltd.” will ask for a quote.
Yongzhen Co., Ltd. (603381): The company's main products include photovoltaic frame products, integrated photovoltaic building products (BIPV), and photovoltaic support structural components. In 2021-2023, the company achieved revenue of 2,952 billion yuan/5.181 billion yuan/5.391 billion yuan, YOY was 106.01%/75.49%/4.05%; realized net profit to mother 95 million yuan/246 million yuan/371 million yuan, and YOY was 100.61%/159.73%/50.74% in that order. In the latest reporting period, from January to January 2024, the company achieved operating income of 1,479 million yuan, an increase of 22.02% over the previous year, and realized net profit of 67 million yuan, an increase of 7.72% over the previous year. According to the company's management's preliminary forecast, the company expects to achieve operating income of 3.60 billion to 4.32 billion yuan from January to June 2024, an increase of 44.03% to 72.84% over the same period of the previous year, and an estimated net profit of 180 million to 216 million, an increase of 5.90% to 27.08% over the same period last year.
Investment highlights: 1. The company is the core supplier of aluminum frames for photovoltaics in the world, and its market share is at the forefront.
The management team, headed by Mr. Wang Xianli, the chairman of the company, has more than 15-20 years of experience in the photovoltaic industry, aluminum extrusion mold and profile industry. Since its establishment, the company has been deeply involved in the photovoltaic aluminum frame industry; with stable product quality and efficient delivery capabilities, the company has gradually accumulated rich high-quality customer resources.
In 2021, the company successfully entered the supply chain of leading PV module manufacturers such as Tianhe Solar, Jingao Technology, Longji Green Energy, Jingke Energy, and Artes, achieved full coverage of CR5 photovoltaic module companies, and obtained direct investment from Tianhe Solar, Jingao Technology, and Artes in the same year, totaling 5.625% of the company's shares; subsequent major customer strategies continued to advance. In 2022, it entered Tongwei Co., Ltd. and Yijing Optoelectronics completed batch supply. In 2023, it entered Tongwei Co., Ltd., and completed large-scale sales to Aixu Co., Ltd., Turkey's photovoltaic module factory EEI, and Jingyou Energy. They all achieve rapid dosing.
According to CPIA data, the global market share of photovoltaic frame products produced by the company in 2021-2023 was 9.15%, 13.04%, and 10.73%, respectively, ranking among the highest in the world. 2. The company is actively carrying out production capacity expansion plans, which is expected to further consolidate its scale advantage. Aluminum alloy materials are currently the preferred material for photovoltaic frames, with a market share of more than 95%, and the continued rise in demand for PV frames around the world will drive a continuous increase in demand for photovoltaic frames; according to the company's prospectus forecast, the average annual demand for photovoltaic frames is expected to increase from about 2.15 million tons in 2023 to 3.2 million tons. The company currently has four production bases in Changzhou, Jiangsu, Yingkou, Anhui, and Wuhu, Anhui, which can produce 240,000 tons of photovoltaic frames per year; at the same time, the Wuhu photovoltaic frame production base with an annual output of 270,000 tons in this fund-raising project is under construction, some production lines have begun initial trial production, and it is expected to gradually start production in 2024. At that time, the company's total production capacity can reach 690,000 tons, which is beneficial for the company to further expand its scale leadership.
Comparison of listed companies in the same industry: The company focuses on the field of photovoltaic frames. According to the similarity of the main products, Xinbo Co., Ltd., Elken Technology, and CITIC Bo were selected as comparable listed companies of Yongzhen Co., Ltd. Looking at the comparable companies mentioned above, the average revenue of comparable companies in 2023 was 5.958 billion yuan, the comparable PE-TTM (excluding negative values and outliers) was 21.33X, and the gross sales margin was 12.15%. In comparison, the company's revenue scale is comparable to that of comparable companies, but the gross sales margin is slightly lower than the average of comparable companies.
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.