Wald (688028): a domestic leader in ultra-high hardness precision tools and materials
The main focus is to master the core technology of ultra-high-hardness precision tools and materials, and the revenue scale has continued to grow: the company is a major army ultra-high-precision and high-precision ultra-hard tools and super-hard materials products research and development, production and sales company.
The company’s diamond cutter wheels and some high-precision cutting tools have broken the monopoly of foreign first-class manufacturers in the industry and can realize imported substitutes in the high-end processing field.
Relying on the company’s technological advantages in the field of super-hard tools, the company’s sales scale has gradually increased. In 2018, the company achieved operating income2.
62 ppm, an increase of 12 in ten years.
3%, net profit attributable to mothers was 66.3 million yuan, an annual increase of 14.
The company has achieved compound revenue growth of 22 in the past three years.
5%, the compound annual growth rate of net profit attributable to mother is 25.
In terms of products, ultra-high and high-precision tools are the company’s core business, with revenues accounting for 39% and 47%, respectively, and the compound annual growth rates in the past three years are about 14% and 35%.
From the perspective of downstream, the downstream of ultra-high-precision tools is mainly consumer electronics display, and high-precision tools mainly serve the automotive industry.
The domestic superhard tool market has breakthrough development potential: The “19th National Congress” report states that it is necessary to accelerate the construction of a manufacturing power, accelerate the development of advanced manufacturing, promote the industry to move towards the mid-to-high end of the global value chain, and foster the development of multiple world-class advanced manufacturing.
Imported substitutes for high-end tools are an inevitable stage in the long-term development of a manufacturing power, and are also the general trend of foreign trade strategies.
According to QY Research, global cutting tool consumption in 2016 and 2017 was approximately USD 33.1 billion and USD 34 billion, respectively, and is expected to reach USD 39 billion by 2022.
If the ratio of conventional superhard tools to cutting tools is 10%, the domestic market of superhard tools in 2016 and 2017 is about 33.
USD 100 million and USD 3.4 billion, and is expected to reach USD 3.9 billion in 2022, with development potential.
The core competitiveness of R & D budgeting is facing the competition of first-class international companies: The company continues to maintain stable development of R & D, and R & D expenses accounted for more than 6% of revenue in the past three years.
The company has formed four cores: “Super-hard material laser micro-nano precision processing technology”, “Vacuum environmental processing technology”, “PCD ultra-thin polyimide and composite sheet precision grinding and mirror polishing technology”, “Automation equipment development technology” four corestechnology.
Advanced technology advantages, 北京桑拿洗浴保健 the company’s products in the applicable range, processing accuracy, workpiece processing quantity, processing feed, replacement and other key indicators of outstanding performance, product performance can be similar to the United States, Japan and other well-known enterprises similar products, and the company’s products have been inManufacturers’ products form direct competition.
With the development of the domestic machinery precision processing industry, the company’s products have become a high-quality choice for downstream customers’ import substitution.
Fund-raising projects to promote capacity expansion: The funds raised by the company this time will continue to increase the production capacity, process level and product quality of ultra-high-precision and high-precision tools, and improve the company’s main business market competitiveness.
The company plans to raise funds 4.
07 ppm, of which ultra-precision tool industrialization upgrade project is expected to supplement revenue1 after reaching production.
460,000 yuan, an increase of 32.17 million yuan in net profit; high-precision tool industrialization upgrade project is expected to increase revenue 1 after reaching production.
00 ‰, increasing net profit by 24.34 million yuan; after the high-precision tool expansion project is completed, it is expected to increase revenue by 25.94 million yuan and increase net profit by 5.97 million yuan.
Estimated analysis: Comparable companies such as Lele New Materials, Sanchao New Materials, and Power Tools have a median static price-earnings ratio of 43 times in 2018, according to Wald’s 2018 net profit of 66.3 million yuan, and a reasonable market value of 28 after issue.
3 ppm; comparable companies have a median PS of 6 in the past year.
3 times, according to Wald’s 2018 revenue 2.
62 trillion, with a reasonable market value of 16.
Therefore, we expect the company to have a reasonable market value of RMB 1.9 billion to RMB 2.7 billion after the issue, and the recommended inquiry range is 23.
8 yuan / share to 33.
8 yuan / share.
Risk reminder: technological progress in the downstream industry may reduce the demand for superhard cutting products; pressure on the cost of downstream consumer electronics products will reduce the price of diamond cutter wheels; the company ‘s revenue will be about 6% of the United States ‘exports, and Sino-US trade relations will partiallyCompany revenue.