Key points of investment

Next Wednesday (June 19), there will be an inquiry for a new stock “Ananda” on the main board of the Shanghai Stock Exchange.

Anida (603350.SH): The company is engaged in R&D, production and sales of electric drive systems for electric two-wheelers. Its main products include three series of motors: direct-drive wheel motors, deceleration wheel motors, and mid-mounted motors, as well as controllers, sensors, instruments and other components that match the motors. In 2021-2023, the company achieved operating income of 1,180 million yuan/1,398 million yuan/1,427 billion yuan respectively; YOY was 53.49%/18.46%/2.12%; realized net profit to mother of 129 million yuan/151 million yuan/148 million yuan, and YOY was 65.60%/16.59%/-1.96% in that order. In the latest reporting period, 2024Q1 achieved operating income of 313 million yuan, a year-on-year decrease of 10.33%, and realized net profit of 34 million yuan to mother, a year-on-year decrease of 4.47%. The company expects 2024H1 to achieve operating income of 671 million yuan to 783 million yuan, and net profit to mother of 71 million yuan to 83 million yuan.

Investment highlights: 1. The company is a leading domestic direct drive wheel motor company and is a core supplier for leading downstream customers such as Yadi and Tailing; at the same time, electric bicycle drive system products such as mid-mounted motors and deceleration wheel motors have gained a certain position in the European market. 1) The company's core products, all-wheel drive in-wheel motors, are mainly used in electric bicycles. The downstream electric bicycle industry is highly concentrated, with CR3 reaching nearly 60%. The top three brands are Yadi (26.90% market share), Emma, and Tai-Ling (market share ratio 14.70%) (data from Frost & Sullivan); the company is the core supplier of direct drive wheel motors for Yadi and Taiwan Bell, accounting for 18%-22% and 25-30% respectively in the first half of 2023. According to the company's prospectus calculation data, in 2020-2022, the company's direct drive wheel motor products had a domestic market share of 7.06%, 7.80% and 7.23% respectively, ranking among the highest in the industry. 2) The company's central motor and deceleration motor products are equipped for electric assisted bicycles. The main customers include regional electric bicycle brands such as French MFC and Dutch Accell. According to the company's prospectus, the shares of the company's mid-mounted motors and deceleration wheel motors in the European market in 2020-2022 were 4.87%, 8.78%, and 8.08% respectively. 2. A subsidiary has been set up and a factory is planned in Vietnam, and it is expected that the advantages of customer resources will be used to seize the development opportunities of the electric bicycle industry in Southeast Asia. Motorcycles are a commonly used means of transportation for Southeast Asians. According to ASEANstats, Southeast Asia currently has about 250 million motorcycles, and the current penetration rate of electric two-wheelers is relatively low; as countries introduce “oil to electricity” policies one after another, the Southeast Asian electric two-wheeler market is expected to usher in development opportunities.

Yadi, one of the company's core downstream customers, has established a strong first-mover advantage in the Southeast Asian market, including more than 400 franchised stores and more than 500 dealers in Vietnam, and has set up production bases in Vietnam. Vietnam's production capacity is expected to reach 2.5 million units/year by 2025; Tailing has piloted electric vehicle projects in the Philippines and Vietnam since 2018, and signed memorandums of cooperation with Thailand's National Science and Technology Center and the Thai Electricity Authority in 2022 to manufacture electric vehicles and electric motorcycles in Thailand and sell them throughout Southeast Asia. The company established Vietnam's Ananda in November 2023, and has planned a corresponding plant and ancillary facilities, and is expected to take advantage of existing customer resources to seize the opportunity for electric bicycles to go overseas.

Comparison of listed companies in the same industry: The company is mainly engaged in R&D, production and sales of electric bicycle electric drive systems such as direct drive wheel motors, deceleration wheel motors, central motors, controllers, etc., and selected Bafang Co., Ltd., which also produces electric bicycle electric drive systems, and Xiechang Technology, which also produces controllers, as comparable companies to Anda. Looking at the comparable companies mentioned above, the average revenue scale of the industry is 1,049 billion yuan, the comparable PE-TTM (arithmetic average) is 45.47X, and the gross sales margin is 28.24%; in comparison, the company's revenue scale is higher than the industry average, but the gross sales margin is lower 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.