Tianyi is better: the investment of rail transit brakes replaces the core target of investment to strengthen the comprehensive strength

Key points of investment: The company is the leading domestic supplier of powder metallurgical brake pads for high-speed rail EMUs. The actual controller Wu Peifang and his concerted parties own the company35.

68% equity.

The company’s main R & D and production of powder metallurgical brake pads and locomotives for military high-speed rail EMUs, urban rail vehicle brake pads, and brake shoe products. In 2018, the powder metallurgical brake pad revenue accounted for 99.

18%.

The company’s downstream is mainly vehicle manufacturers, system integrators and railway bureaus. The company’s products currently cover all 18 local railway bureaus under the railway headquarter. The products are applied to 18 EMU models at different speeds.The core supplier of powder metallurgical brake pads for the “Fuxing” EMU.

Peifang Wu and his concerted parties, Shi Jia, held the company directly or indirectly35.

68% of the shares are the actual controllers of the company.

The company has been in a stable growth stage in recent years, with barriers to entry. Its technological strength and downstream recognized joint-drive companies have maintained gross margins above 73%.

The company’s main brake pad products are targeted and overlapping to the downstream, and the continuous downstream rail transit and EMU manufacturing industry has developed rapidly. At the same time, the company has stable product quality and its main business has grown steadily.

2016/2017/2018 realized operating income4.

68/5.

07/5.

5.8 billion; realized net profit1.

95/2.

22/2.

6.3 billion.

In terms of gross profit margin, the gross profit margin of powder metallurgical brake pads is stable at a high level of more than 73%. The proportion of organic brake pads for synthetic brake pads / shoes due to the higher gross profit ratio has decreased, resulting in an overall decline in gross profit ratio, but product revenue accounted forThe ratio is small and has little effect on the company’s comprehensive gross profit margin.

In the same industry, the company’s gross profit margin is significantly higher than the average level. This is because the company’s core business is not comparable to the market. At the same time, the company has a high barrier to product technology and customers. In addition, the company’s product competitiveness has expanded, and many downstream customers have stabilized, ensuring the product.High gross profit margin.

The company’s core technologies are fully industrialized, and investment projects meet production capacity and technology needs.

The company’s proprietary technology research 南宁桑拿 and development currently has 15 core technologies in the material formulation, process route and process equipment of the brake pads, most of which have achieved mass production, and the core technology product revenue accounted for 99% of revenue.

Above 8%, it has fully realized industrialization.

The company is currently developing 15 projects, many of which have passed the technical certification requirements of CRCC, EEE-Mark and domestic OEMs.

The company plans to raise funds for the science and technology innovation board for an annual output of 600,000 rail transit locomotive vehicle brake pads and brake shoes (2.

600 million), 160 kilometers per hour power centralized electric vehicle brake pad research and development and intelligent manufacturing demonstration production line project (3.

10,000 yuan), marketing and service network construction project (0.

7.6 billion) to provide financial support.

The company chooses a listing standard with an estimated market value of not less than RMB 100,000 and a net profit of positive in the past two years and gradually not less than 5,000 million US dollars. We think it is appropriate to use a comparable company PE estimation method.

我们认为,公司轨交装备领域技术与模式已充分成熟,粉末冶金闸片在行业内渗透率已达高水平,目前处于进口替代关键期,公司处于扩展核心技术顺应下游需求的时期,与众多 股The development stage of listed rail transit equipment companies is close, and the PE valuation method of comparable companies should be used for estimation.

risk warning.

Customers have high routines, supplier concentration risks, and railway product certification risks.