Key points of investment

Next Tuesday (July 9), a GEM listed company “Greenlink Technology” will ask for a quote.

Greenlink Technology (301606): The company is mainly engaged in R&D, design, production and sales of 3C consumer electronics products. The products mainly cover five major series: transmission, audio and video, charging, mobile peripherals, and storage. The company achieved operating income of 3.446 billion yuan/3.839 billion yuan/4.803 billion yuan respectively in 2021-2023; YOY was 25.88%/11.40%/25.09%; realized net profit to mother 0.297 billion yuan/0.327 billion yuan/0.388 billion yuan, and YOY was -0.47%/10.39%/18.35% in that order. In the latest reporting period, from January to January 2024, the company achieved operating income of 1.284 billion yuan, a year-on-year increase of 27.06%; realized net profit to mother of 0.102 billion yuan, an increase of 10.44% over the previous year.

According to the company's management's preliminary forecast, the company's revenue for January-June 2024 is expected to increase 25.19% to 30.62% over the same period of the previous year, and net profit will increase 6.16% to 11.50% over the same period last year.

Investment highlights: 1. The company relies on the “UGREEN Green Link” brand and uses mainstream e-commerce platforms at home and abroad such as Tmall, JD, and Amazon to become one of the leading brands in the global consumer electronics peripheral field.

Since its establishment in 2012, the company has strategically laid out an online sales platform, based on the “UGREEN Green Link” independent brand, and has now achieved coverage of mainstream e-commerce platforms at home and abroad such as Tmall, JD, Amazon, AliExpress, Shopee, and Lazada. It has won honors such as “Alibaba Wang Zhe Store” and “JD's Best Store of the Year”, and its core products ranked at the top of the mainstream platform lists at home and abroad; during the reporting period, the company's revenue through online e-commerce platforms accounted for 78.14%, 75.98% and 4.77.77.77, respectively % Using the influence of e-commerce platforms, the company's representative products achieved leading sales in the industry; among them, according to QY Research data, in 2021, the company ranked fifth in global sales of docking station products and audio and video cable products, ranked first in China, and second in the world in terms of sales of mobile phone data cable products (excluding original mobile phone manufacturers such as Apple and Huawei). 2. The company actively carries out product iterative upgrades to meet the changing needs of downstream customers, which is expected to support stable and positive performance. The company's various product lines continue to launch iterative products that meet the needs of downstream customers, including products such as simple docking stations and 8K cables in the transmission category, TWS headsets, wireless projectors and other products in the audio and video category, new wireless chargers, multi-port gallium nitride quick charge 300W chargers, high-end plug-in series, etc., and products such as floor-to-ceiling live broadcast stands and laptop elevating folding stands in the mobile peripheral category, as well as private cloud storage and disk arrays in the storage category. During the reporting period, with the successive mass production and launch of these new products in domestic and foreign markets, the company's revenue grew rapidly; from 2021 to 2023, the company's revenue was 3.446 billion yuan, 3.839 billion yuan, and 4.803 billion yuan respectively, with a compound annual growth rate of 18.05%. Among them, charging products benefited from increased demand for fast charging, and their revenue growth was more obvious, from 0.788 billion yuan in 2021 to 1.557 billion yuan in 2023.

Comparison of listed companies in the same industry: The company focuses on the peripheral fields of consumer electronics equipment. Based on the similarity of its main products, Anke Innovation, Bull Group, and Haineng Industrial were selected as comparable listed companies of Greenlink Technology.

Looking at the comparable companies mentioned above, the average revenue of comparable companies in 2023 was 11.702 billion yuan, the comparable PE-TTM (arithmetic average) was 22.57X, and the gross sales margin was 38.27%. In comparison, the company's revenue scale and gross sales margin were 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.