The three elements of value investment, good track, good company, good **, according to this logic, does Heertai (002402) meet these three points? Or which of them fit?
The track is very important, and a good track makes the company more likely to grow sustainably. The sunset industry is struggling, and the sunrise industry is riding the wind to 90,000 miles. So, what tracks did Heertai step on? What about the future of these tracks?
Heertai's main business is intelligent controllers, is the global leader of intelligent controllers, from the beginning of its establishment in 2000, continue to deepen the field of controllers, in addition to the company also has the concept of space-based interconnection, Beidou navigation, this business will give the company more points at a critical moment.
Let's talk about the track where the company is located, the track of intelligent controllerThere are three major characteristics and one variationThe three major characteristics are small and wide, large and scattered, mature and steady, and one change is that its circle of friends is expanding.
Let's start with itSmall but wideThe characteristics of the intelligent controller is not a cold component, it is the patron saint of a better life around us, it is hidden around us, silently provides us with an intelligent life, adjusts the temperature for your air conditioner and refrigerator, opens and closes the curtains for you, adjusts the lights for you, and provides safe, stable and comfortable conditions for your car. Although it is small, it has a wide range of applications, such as automotive electronics, household appliances, power tools, smart homes and industrial equipment.
And the downstream application industry of Heertai intelligent controller Look againLarge and scatteredIt is expected that the Chinese market will reach 3,806.1 billion yuan in 2024, with automotive electronics and household appliances accounting for the largest proportion, with a scale of 3799 and 308.7 billion yuan respectively. In addition, the industry is too scattered, the group of champions rises, not concentrated, the market share of the head manufacturers and Taihe Topband shares are less than 1%, and other listed companies such as Zhenbang Intelligence, Beishidaq, Langte Intelligence, Langke Intelligence, Hejing Technology, Ruide Intelligence, etc., their revenue is even smaller.
Mature and steadyChina's intelligent controller has nearly 30 years, technology and market are relatively mature, there is no technical risk, but the global intelligent controller market will grow steadily.
One change is that the circle of friends is expanding. With the accelerated development of artificial intelligence, cloud computing, big data, 5G commercialization and Internet of Things technologies, more high-speed, high-mobility, and short-latency intelligent hardware and connection scenarios have been derived, promoting the intelligent controller industry to continue to extend to commercial, medical, education, new energy and other fields, and downstream industries continue to expand and enrich.
Intelligent controller is a necessity, there is no substitute, the industry has been developing steadily, the market size is large, but the short-term explosive power is insufficient, it is a long-distance running track, more suitable for long-distance runners.
The company's quality track is more important, no matter how good the track is, there are also cyclicals and fluctuations, and a good company can better resist the fluctuations of the industry and go through the cycle. Judging from the past performance, Heertai is undoubtedly outstanding, and its growth is very strong. From 2012 to 2022, the company's revenue increased from 5600 million grew to 59800 million yuan; Net profit increased from 26.22 million to 55.3 billion yuan, an increase of 20 times. In 2022, due to downstream destocking, net profit fell to 43.8 billion, but still higher than in 2021; In 2024, the impact of inventory will be basically eliminated. From the perspective of the comparison of competing companies, the revenue scale of Heertai is lower than that of Topband, and the company's revenue is 596.5 billion, 29 less than Topband's shares100 million, but with an ROE of 1128%, higher than the 1085%。ROE refers to return on net assets, the size of ROE can reflect the profitability of the enterprise, look at Kweichow Moutai's ROE, it has been above 30% for a long time. 
2012-2022 Heertai's revenue
For Heertai in 2023,To sum up: the fundamentals continued to be optimized, the new business grew rapidly, and the market share increased; R&D has increased, and the global industrial layout has accelerated。The efforts and changes of the present, and every drop of sweat shed, are the nourishment for future growth.
Finally, looking at the share price of Heertai, after 26 months of adjustment, the maximum decline reached 69%, and the current dynamic PE is 2247, within a reasonable valuation range.
Finally, let's talk about the company's plus points, it is by virtue of this that Taibi Topband shares have a higher valuation, perhaps because of this, and Tai Neng homeopathic two boards, this plus point is Chengchang Technology, the company holds Chengchang Technology 4722% of the equity, is the controlling shareholder, and will be spun off and listed in 2022. Chengchang technology has an important position in the field of satellite communications, is one of the few domestic phased array T R chip research and development and mass production units, with Huawei, Honor launched satellite call function of mobile phones, as well as the game of large countries in orbit resources, the market believes that satellite communications will usher in a period of rapid development.
Heertai is in a mature track but still has growth potential; The company has strong growth, can respond quickly to the changes in the global pattern, concentrate on cultivating internal skills in headwinds, and will start shifting gears in 2025; After the 69% plunge, the current valuation is also reasonable, such a harmony and Thailand, whether it meets the standards of a good track, a good company, and a good ** in your heart, welcome to leave a message in the comment area to discuss.