Key points of investment
Next Wednesday (January 3), a company listed on the Main Board, “Tengda Technology” will ask for a quote.
Tengda Technology (001379): The company is mainly engaged in R&D, production and sales of stainless steel fastener products. In 2020-2022, the company achieved revenue of 1,082 billion yuan/1,599 billion yuan/2.187 billion yuan respectively; YOY was 19.38%/47.79%/36.79%, and the three-year compound annual growth rate of operating income was 34.14%; net profit to mother was 52 million yuan/108 million yuan/135 million yuan, YOY was 311.20%/105.40%/25.25%, and the three-year compound annual growth rate of net profit to mother was 119.52%. In the latest reporting period, from January to September 2023, the company achieved operating income of 1,362 billion yuan, a year-on-year change of -19.23%; net profit to mother was 75 million yuan, a year-on-year change of -13.35%.
According to the company's preliminary forecast, the net profit range for the full year of 2023 was about 96 million yuan to 114 million yuan, a change of -15.50% to -28.85% over the same period last year.
Investment highlights: 1. The company's production and sales volume ranks in the top three in the stainless steel fastener industry, and customer resources are abundant. The company is one of the largest manufacturers of stainless steel fasteners in China. In 2022, the sales volume of stainless steel fasteners was about 77,000 tons, which has a scale advantage. According to the China Machinery General Parts Industry Association, the company ranked in the top three in the industry in terms of production, processing and sales volume of stainless steel fastener products in 2020-2022. The company's products are exported to more than 40 countries or regions around the world, accounting for more than 80% of export sales revenue in 2022; the number of domestic and foreign cooperative traders exceeds 1,000, and customer resources are abundant. Among them, WURTHGROUP, the largest customer, is the global fastening business market leader and is known as an “industrial supermarket”. 2. The company plans to expand high-profit categories with rich production lines in the future and strengthen market development in new fields. The company's stainless steel fastener product categories now mainly include bolts, nuts, screws, washers, etc., covering more than a thousand standards. Based on the current demand for products such as drilling screws, fastening screws, flat washers, etc., the company plans to expand production lines through fund-raising projects to increase market development efforts for stainless steel fastener products in new application fields, including plans to add self-tapping screws, fastening screws, flat gaskets, etc. with high profit levels, and increase the development of new application fields with rich overseas customer development experience accumulated in the past.
Comparison of listed companies in the same industry: Considering business and product types, Jinyi Industrial was selected as Tengda Technology's comparable listed company; judging from the comparable companies mentioned above, the average revenue scale in 2022 was 2,717 billion yuan, with gross sales margin of 16.27%; in comparison, the company's revenue scale and gross margin were lower than comparable companies in the 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.