Subscription analysis of West Magnetic Technology

Mondo Technology Updated on 2024-01-28

, the company's business introduction

The issuer is a comprehensive professional manufacturer of magnetic application products, specializing in the research and development, design, production and sales of magnetic filtration equipment and various magnetic application components, the main products are magnetic filtration equipment, magnetic separation rods and weight suction products, etc., which are widely used in electronic materials, chemicals, food and medicine and other industries, and are suitable for cleaning ferromagnetic impurities in fluids, slurries, powders, granules, fines and other materials to improve the quality of materials.

The company has continuously innovated and optimized magnetic filtration equipment from multiple perspectives such as R&D, design and application scenarios, and has successfully developed automatic permanent magnet iron removal equipment and electromagnetic iron removal equipment with high reliability, high efficiency and automation as its core competitiveness. Among them, the company's innovative research and development of automatic permanent magnet iron removal equipment solves the existing problems of ordinary manual permanent magnet iron removal equipment that need to be shut down to clean up impurities, unusable under positive pressure conditions, large loss of raw materials and low iron removal efficiency; The electromagnetic iron removal equipment developed by the company solves the problems of the existing electromagnetic iron removal equipment due to the increase of coil temperature, the reduction of magnetic field strength and the waste of raw materials.

The company's products are exported to Asia, Europe, America and other regions, and have established good cooperative relations with well-known enterprises such as CNGR, CATL, Huayou Cobalt, Baile Jialibao, etc.

The company's product form, characteristics and application fields are as follows:

During the reporting period, the revenue composition of the company's main business products is as follows:

, the company's performance

From 2018 to 2022, the company's growth and profitability are as follows:

As of September 30, 2023, the company's operating income, attributable net profit, and non-net profit were 15.2 billion, 03.9 billion, 03.1 billion, a year-on-year increase. 07%。

, development and comparison with comparable companies

The company's issue price is 809 yuan, 15.39 million shares were issued, of which 14.62 million shares were issued online and 1.65 million shares were issued before the issuance. Lead underwriter: Ping An**, with a market value of 5 after issuance5.4 billion yuan, with a circulating market value of 13.2 billion yuan. Listing location: Beijing Stock Exchange, subscription time: December 12, 2023 (Tuesday). Dynamic P/E ratio of 1065, static P/E ratio 1731, the industry P/E ratio is 18. The market capitalization, price-to-earnings ratio and revenue of comparable companies are as follows:

The issuer is in a very subdivided industry, and there are currently no companies in Shanghai, Shenzhen and Beijing that are similar in products, business and application fields, and only the companies listed on the third board, Huate Magnetoelectric and LONGi Electromagnetic, are similar to the company's business and products. Due to the differences in listing places, product types, product institutions, product sizes, downstream application fields, customer structure, etc., although there are similarities and certain comparability, there are also certain limitations in the reference.

The estimated winning rate and the funds required to secure 100 shares are as follows:

, Summary

The company's products are mainly used for precision impurity removal in electronic materials, chemical, pharmaceutical and food industries, and the gross profit margin is higher than that of LONGi Electromagnetic and Huate Magnetoelectric, which are mainly used in mining, electric power, smelting and other fields, which is understandable; However, it is a bit strange that the R&D expense ratio during the issuance period is lower than the average of comparable companies as a whole. According to QYRESEARCH's "2021-2027 Global and China Magnetic Application Equipment Industry Development Research and Development Trend Report", the global magnetic application equipment market size reached 10 in 2020$8.1 billion, which is expected to reach $16 in 20270.4 billion US dollars.

If the issuer is only deeply involved in the industry, and the downstream cannot have a larger-scale application scenario, the ceiling may be limited.

In addition to the fact that the industry is relatively subdivided and the scale is a little smaller, the texture is still okay. From 2021 to 2022, the company's growth and profitability were good, and it will continue to maintain high growth in 2023. The company's dynamic P/E ratio is only 10 times, which is still relatively low, and the issue market value is 55.4 billion is also quite mini. The company's issue price is 809 yuan, compared to 6 before the suspension33 yuan is 28% higher, but among the 1.65 million old outstanding shares, Ping An** accounts for 1.03 million, and open source** accounts for 320,000, so there will not be much selling pressure. A cautious subscription rating is given after comprehensive consideration.

Subscription level: cautious。I Subscribe to the Plan: Participate.

Notes: The performance of IPO on the first day is related to many factors, and this article is only a brief analysis of the company's business, main financial indicators and valuation. When investors hit the newIndependence requiredThink, and make a decision. If there is a conclusive statement in the article, it is also a personal opinion. We hope that investors will invest rationally.

Related Pages