Main points of investment

Next Tuesday (October 24), there will be an inquiry for Lianyu shares, a company listed on the main board.

Lianyu shares (001326): the company is mainly engaged in R & D, production and sales of medium and high-power LED lighting products. From 2020 to 2022, the company achieved operating income of 632 million yuan / 1.225 billion yuan / 1.09 billion yuan, YOY of 20.70%, 93.78% and 11.01%, respectively, and the annual compound growth rate of three years' operating income was 27.68%. The net profit of homing was 59 million yuan / 106 million yuan / 134 million yuan, the YOY was 64.96%, 80.18% and 26.20%, respectively, and the annual compound growth rate of three years' net profit was 55.38%. During the latest reporting period, the company achieved operating income of 641 million yuan from January to June 2023, an increase of 3.00% over the same period last year, and a net profit of 74 million yuan, an increase of 6.65% over the same period last year. According to the preliminary forecast, the company is expected to achieve a net profit range of about 114 million yuan to 120 million yuan from January to September 2023, a change of 6.99% to 12.62% over the same period last year.

Investment highlights: 1. The company is a leading manufacturer of outdoor and industrial LED lighting products in North America. The company adopted a differentiation strategy and concentrated resources on outdoor and industrial lighting areas with low LED permeability in North America. In 2012, through the mode of ODM, it was the first to break through the difficulties of medium and high-power LED light sources, and seized the opportunity of the gradual transformation of LED lighting from light sources to integrated LED lamps to carry out technological upgrading, thus accumulating a strong first-mover advantage. It has become one of the few companies with complete product specifications, rapid response and delivery ability in the North American lighting market, accounting for 87.93% of the market revenue in the first half of 2023. On this basis, the company implements the "key customer strategy". The customer structure is gradually optimized from the initial small and medium-sized customers to high-quality customers of international brands, including Landvans, Xin Nuofei and CURRENT, which are spun off from the international lighting giants Osram, Philips and GE Lighting. The company's market share is gradually increasing. According to the China Lighting and Electrical Appliances Association, the company ranks third among domestic outdoor lighting street lamp exporters in 2021, and ranks first for the United States market export. and the company's industrial lighting industry and mining lamp ranks second in the domestic export global market. 2. On the basis of consolidating the dominant position of LED in the field of outdoor and industrial lighting, the company actively extends to the field of special lighting. Special lighting is an emerging lighting field, the industry is in a period of rapid development, and the market scale is constantly expanding. For example, LED, as a cold light source with adjustable light intensity spectrum, is an ideal light source for modern facility agricultural plants, which can accelerate the plant growth cycle so as to improve the plant harvest; as well as the continuous development of the sports industry in various countries and the increasing emphasis on safety in the petrochemical, natural gas, coal and other energy industries, which has given birth to lighting requirements in emerging fields such as sports lighting and relatively rigid explosion-proof lighting. On the basis of consolidating the dominant position in the field of outdoor and industrial lighting, the company extends to the application field of special lighting to enrich the product matrix, focusing on strengthening technology development and reserve in the three emerging fields of plant lighting, sports lighting and explosion-proof lighting. At present, plant lights, stadium lights and explosion-proof lamp products have been shipped on a preliminary scale, and special lighting products account for 6.93% of the overall income in the first half of 2023.

Comparison of listed companies in the same industry: taking into account the business and product types, Liderson, Lighting, Debon Lighting, Sunshine Lighting and Hengtai Lighting are selected as comparable listed companies; from the above-mentioned comparable companies, the average income in 2022 is 3.484 billion yuan, the sales gross profit margin is 25.71%, and the comparable PE-TTM (arithmetic average / excluding the Northern Exchange and the maximum) is 22.72X In comparison, the company's revenue size and gross profit margin are lower than the average of comparable companies.

Risk hint: companies that have started the inquiry process still have the possibility of not being listed due to special reasons, the company content is mainly based on prospectuses and other public materials, and the selection of listed companies in the same industry is not accurate. Risk, content data interception may have interpretation deviation and so on. The specific risks of listed companies are shown in the text.