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天和磁材(603072)新股覆盖研究

Tianhe Magnetic Materials (603072) IPO Coverage Study

HuaJin Securities ·  Dec 13, 2024 19:57

Next Tuesday (December 17), a company listed on the motherboard, “Tianhe Magnetic Materials” will ask for a quote.

Tianhe Magnetic Materials (603072): The company focuses on the field of high-performance rare earth permanent magnet materials, focusing on downstream NEVs and automotive components, wind power generation, energy-saving appliances, 3C consumer electronics and other terminal fields. The company achieved revenue of 1.825 billion yuan/2.885 billion/ 2.651 billion yuan respectively in 2021-2023; YOY was 58.78%/58.03%/-8.09%; realized net profit to mother 0.143 billion yuan/0.223 billion yuan/0.169 billion yuan, YOY was 9.38%/55.79%/-24.25% in that order. In the latest reporting period, from January to September 2024, the company achieved operating income of 1.937 billion yuan, a year-on-year decrease of 1.40%, and net profit to mother of 0.107 billion yuan, a year-on-year decrease of 8.06%. According to the company's management's preliminary forecast, the company's revenue in 2024 changed -11.35% to 2.64% year on year, and net profit changed -16.72% to 2.22% year on year.

Investment highlights: 1. The company is located in Baotou, the “capital of rare earths”, and has gradually become the core supplier of high-performance NdFeB in China through the “blank+finished” two-wheel drive business model. The company's core team has been deeply involved in the field of sintered NdFeB for more than 30 years. At the beginning of development, they focused on front-end rough development with relatively high added value, laying a solid foundation for the subsequent implementation of the “blank and finished product” two-wheel drive business model. At the same time, Baotou City, Inner Mongolia Autonomous Region, where the company is located, is known as the “rare earth capital”, which ranks first in the country in terms of proven rare earth resource reserves and production. It now has a relatively complete rare earth industry system to help the company form a strong location advantage. According to the company's prospectus, the company's sintered NdFeB blank production in 2023 was 8,200 tons, reaching the scale level of the first tier in the industry, and the share of sintered NdFeB in the rare earth permanent magnet materials industry in the autonomous region reached 21.5%. Judging from the development of the industry, rare earth permanent magnet materials are key strategic materials that achieve functions such as electromagnetic conversion, electrical signal conversion, and magnetic conversion, causing demand for them to continue to rise in new high-end application fields such as new energy vehicles, wind power generation, and aerospace; as a core supplier of high-performance rare earth permanent magnet materials in China, the company is expected to benefit from this. 2. The company accelerates the deployment of overseas subsidiaries and actively promotes the international development strategy. Along with the refinement of cooperation with internationally renowned manufacturers such as Bosch, Brose, Valeo, and Volkswagen AG, the export scale of the company's rare earth permanent magnet products showed an increasing trend year by year; during the reporting period, the share of sales revenue to overseas countries and regions such as Europe, Japan, and South Korea increased from 23.03% in 2021 to 48.30% in 2024H1. At this stage, the company's overseas market layout is still ongoing. According to the prospectus, the company established a wholly-owned subsidiary Tianhe Magnetic Material Technology Co., Ltd. in Germany in February 2024 to be responsible for technology research and import and export trade related to magnetic materials and their components, and also established a wholly-owned subsidiary Youke Magnetic Devices Co., Ltd. in Hungary in the same month to be responsible for the production and sales of NdFeB products, which is expected to boost overseas business.

Comparison of listed companies in the same industry: According to the similarity of main business, Jinli Permanent Magnet, Zhenghai Magnetic Materials, Ningbo Yunsheng, Yingluohua, Dadi Bear, and Zhongke Magnetic were selected as comparable listed companies of Tianhe Magnetic.

Looking at the comparable companies mentioned above, the average revenue of comparable companies in 2023 was 3.949 billion yuan, the average PS-TTM (excluding outliers and arithmetic average) was 2.74X, and the average gross sales margin was 14.34%. In comparison, the company's revenue scale fell short of the industry average, and the gross margin was comparable to the average of comparable companies in the same industry.

Risk warning: Companies that have already begun the inquiry process may still not be able to go public due to special reasons; the company content is mainly based on prospectus and other public information; there is a risk that the selection of listed companies in the same industry is not accurate; there may be interpretation biases in the selection of content data. The specific risks of listed companies are shown in the text.

The translation is provided by third-party software.


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