China Energy convertible bonds for new subscriptions.
Zhongneng Electric's convertible bonds will be newly subscribed on December 11 (Monday), and the GEM convertible bonds can be placed if you hold the underlying shares.
Fundamentals. The fundamentals of the underlying stock are acceptable, and the valuation is on the high side. In recent years, the performance has grown rapidly, the gross profit margin has decreased slightly, and the cash flow has been tight recently. The net profit of the 2023 semi-annual report increased by 14% year-on-year29%。The company's revenue growth is strong, the proportion of accounts receivable is high, the realization speed is slow, and there is a certain risk of bad debt loss. Institutional attention is low. Half-star performance score.
The company is mainly engaged in the R&D, production, sales and services of power transmission and distribution equipment and new energy electric vehicle charging piles, covering the whole life cycle of ground and distributed photovoltaic power generation projects, investment and construction, EPC project general contracting, and post-operation and maintenance services. Customers are mainly for State Grid, China Southern Power Grid, China Railway Group, urban rail transit, industrial and mining enterprises, etc.
The company is a leading enterprise in the manufacture of smart grid equipment in China, and has accumulated rich experience in the research and development and production of power transmission and distribution equipment, as well as a talent team. While improving the profitability of the existing business, the company actively grasped the opportunity of the great development of the industry, so that the performance grew rapidly. However, it is currently small in scale and will take time to develop and grow. Half-star rating for industry status.
Convertible Terms. The bond has a low rating of only A+, and an annualized yield to maturity of 308%, moderate downward revision (85%), pb277, there is a large space for downward revision, and there is a buyback clause. Rating terms score half a star.
Valuation of convertible bonds. At present, the convertible bonds are at a slight premium, and the company's performance is growing rapidly, but the industry's prosperity is declining, and the same kind of convertible bonds are favored by the market and give a higher premium. Charging piles, smart grids, energy storage, energy systems, mini-bond swap concepts. The subject score is one star. Subjective rating half star.
Comparison of power equipment convertible bonds:
Subscription strategy. The comprehensive score is three stars, and the convertible bond is subscribed. There is no offline subscription, the issuance scale is small, and the winning rate is expected to be low.
Special statement: The above views are for reference only and do not constitute investment advice.