This Friday (August 23), a new Main Board share “Express Delivery Shares” was purchased. The issue price was 32.00 yuan, and the price-earnings ratio was 15.05 times (the issuance price per share divided by earnings per share, and the earnings per share were calculated based on the net profit attributable to shareholders of the parent company before and after deducting non-recurring profit or loss in 2023 divided by the total share capital after the current issuance).

Suda Co., Ltd. (001277): Currently, the company's business mainly revolves around hydraulic supports for comprehensive coal mining equipment, providing comprehensive aftermarket services such as maintenance and remanufacturing, supply management of spare parts, rental and sale of used equipment for coal manufacturers, and fluid connection products for mechanical equipment manufacturers. The company achieved revenue of 0.822 billion yuan/1.076 billion/ 1.253 billion yuan respectively in 2021-2023; YOY was 36.19%/30.89%/16.45%; realized net profit to mother 0.102 billion yuan/0.105 billion yuan/0.162 billion yuan, and YOY was 40.72%/2.77%/54.72% in that order. In the latest reporting period, from January to June 2024, the company achieved operating income of 0.57 billion yuan, a year-on-year decrease of 4.03%; net profit to mother was 0.079 billion yuan, an increase of 16.57% over the previous year. According to the company's management's preliminary forecast, the company's operating income from January to September 2024 is expected to change -0.53% to 8.95% from the same period of the previous year, and net profit to mother will change 0.06% to 8.23% compared to the same period of the previous year.

Investment highlights: 1. The company is backed by Zheng Coal Machinery Group and has now become one of the few large-scale and comprehensive aftermarket service providers for coal mining machinery and equipment in China. Prior to the establishment of the company, the founder, Mr. Li Xiyuan, reached a strategic cooperation with Zheng Coal Machinery Group, introduced Mr. Jia Jianguo and Mr. Li Yousheng, who work for Zheng Coal Machinery, as founders, and accepted Zheng Coal Machinery's after-sales service team (29 people) to jointly develop aftermarket services for coal machinery. Zheng Coal Machinery Group is a leading hydraulic support enterprise for comprehensive coal mine mining equipment in China. It currently holds 19.82% of the company's shares and is the second largest shareholder. Relying on the platform of Zheng Coal Machinery Group, the company has gradually developed into one of the few large-scale and comprehensive aftermarket service providers for coal mining machinery and equipment in China. The number of hydraulic support spare parts in different models and categories is as high as 0.03 million, which basically covers all parts replacement requirements for a comprehensive set of comprehensive mining equipment. At the same time, the service network covers 11 of the country's 14 large-scale coal bases, and has established cooperative relationships with many large state-owned enterprises such as Ningmei and Henan Coking Coal. The E-shopping platform has signed a long-term cooperation agreement. 2. Under the current trend of separation of coal business owners and assistants, third-party service providers are expected to accelerate penetration in the field of coal mining machinery aftermarket services. The poor underground use environment in coal mines makes failures inevitable during the commissioning of integrated mining equipment, which seriously affects underground safety and normal production and operation. Due to problems such as non-standard and difficult maintenance and technical reform, coal mine machinery and equipment are widely idle in China, and the demand for idle equipment revitalization is high. Together, it has spawned a coal machine aftermarket service industry with good development prospects; if China's raw coal production and the proportion of large-scale coal mine production in 2023 is calculated, the market demand for comprehensive coal mining equipment reaches about 30 billion yuan. If idle equipment is included to revitalize the market, the industry space is even larger. However, due to reasons such as the fact that third-party professional service providers are mostly small-scale and have a single service category, coal companies account for a relatively high proportion of self-service at this stage; taking the maintenance market as an example, coal companies' own maintenance ratio is as high as 60%. In the future, it is expected that as the reform of state-owned enterprises continues to advance, coal enterprises will be forced to divest themselves from auxiliary business links, focus on their main business, and improve production and operation efficiency, while the penetration of third-party professional service providers accelerates, and the pattern of the post-market service industry of coal mining machinery is expected to shift from self-service to procurement by professional service providers.

Comparison of listed companies in the same industry: The company focuses on post-market service fields with many comprehensive coal mining equipment and engineering equipment; based on the similarity of main business, Jerry Shares, Chuangli Group, and Knapp Mining Machinery were selected as comparable listed companies of Suda Co., Ltd. Looking at the comparable companies mentioned above, the average revenue of comparable companies in 2023 was 5.835 billion yuan, the comparable PE-TTM (arithmetic average) was 16.15X, and the gross sales margin was 38.53%; 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.