Key points of investment
This Friday (June 21), a company listed on the Main Board, “Jianbang Co., Ltd.” asked for a quote.
Jianbang Co., Ltd. (603285): The company specializes in R&D, production and sales of polymer environmental additives. The company achieved revenue of 1,044 million yuan/754 million yuan/674 million yuan respectively in 2021-2023; YOY was 81.27%/-27.78%/-10.56%; realized net profit to mother of 329 million yuan/243 million yuan/190 million yuan, YOY was 126.44%/-26.28%/-21.87% in that order. In the latest reporting period, from January to January 2024, the company achieved operating income of 168 million yuan, an increase of 6.64% over the previous year, and realized net profit of 44 million yuan, an increase of 5.66% over the previous year. According to the company's management's preliminary forecast, the company expects to achieve operating income of 347 million yuan to 378 million yuan from January to June 2024, an increase of 1.07% to 10.10% over the same period of the previous year, and is expected to achieve net profit of 99 million yuan to 109 million yuan, an increase of 0.48% to 10.63% over the same period last year.
Investment highlights: 1. The company is deeply involved in the field of calcium and zinc environmental additives. It already has an absolute leading position in segmented products such as SECK, and is expected to benefit from the iteration of non-environmentally friendly additives such as lead salts. The company and its predecessor have focused on environmental additives in the field of polymer materials such as PVC plastics and coatings for nearly ten years. The core products cover calcium and zinc environmental additives such as Cyker, titanate, DBM, SBM, and acetylacetone salt. According to statistics from the Plastic Additives Professional Committee of the China Plastics Processing Industry Association, the domestic market share of the company's SEC products reached more than 80% in 2021-2022, and the domestic market share of titanate products reached more than 40%. Calcium-zinc environmental additives are the main replacement products for traditional non-environmentally friendly additives such as lead salts, and are more in line with the environmentally friendly development trend; according to “China Chlor-Alkali” statistics, the annual consumption of high-pollution stabilizers such as lead salt still accounts for about 41.5% in the PVC plastics field in 2020, and calcium-zinc environmental stabilizers have a large alternative space; as a leading enterprise in this segment, the company may benefit from it. 2. Thanks to the application expansion of core customers and the development of new product lines, the boom in new energy vehicles is expected to help the company's performance. (1) The company's core customers, Elentas Group and Essex Group, are world-renowned manufacturers of electromagnetic wire or enameled wire paint. The two parties have cooperated for a long period of more than 7 years. According to the official website of Alentas, its enameled wire and insulating paint products can be used for electronic components such as motors, powertrains, and batteries for electric vehicles. Driven by the development of new energy vehicles, Elentas Group's major domestic production sites obtained approval decisions on environmental impact assessment documents in December 2023, and it is expected to increase production of various high-performance insulating paints by 55,000 tons per year. At the same time, Essex Group's official website revealed that it has become a partner of the world's leading electric vehicle manufacturers and suppliers, providing electromagnetic wire products for electric vehicle traction motors, regenerative braking, autonomous driving, sensors and other systems. (2) The company's new product line was successfully applied in the field of new energy lithium batteries; during the reporting period, it developed well-known domestic lithium battery cathode material customers such as Fulin Seiko, and further expanded its customer range in 2023 to supply leading lithium battery customers such as China Airlines. According to information publicly disclosed by Fulin Seiko, the company has established good cooperative relationships with well-known domestic lithium battery manufacturers such as Ningde Times, Honeycomb Energy, and BYD; according to information publicly disclosed by China Airlines, the company ranked third in the country in terms of power battery installed capacity in 2023.
Comparison of listed companies in the same industry: The company focuses on the field of polymer materials and environmental additives. Based on the similarity of the main products, it selects Chenghe Technology, Fengguang Co., Ltd., and Changqing Technology as comparable listed companies of Jianbang Co., Ltd.
Looking at the comparable companies mentioned above, the average revenue of comparable companies in 2023 was 857 million yuan, the comparable PE-TTM (excluding negative values/arithmetic average) was 23.45X, and the gross sales margin was 31.21%. In comparison, the company's revenue scale is lower than the average of comparable companies, but 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.