China Research Institute Co., Ltd. 688716
Issue price: 29.66
Issue PE: 67.37
The issuance volume was 30.42 million shares, the actual fundraising was 900 million, and the proposed capital was 450 million, and the investment projects were as follows
Before the issuance, the joint actual controllers of the company were Xie Huaijie, Xie Yuning and Bi Xin, and the three held a total of 45.78% of the company's equity, which can exert significant influence on major matters such as the company's business decisions, financial policies and personnel appointments and dismissals.
Main business: polyetheretherketone (PEEK) research and development, production and sales. The main product is PEEK in the form of resin, forming an existing product system of "two categories, three major grades, and six series" with a total of 52 specifications and grades.
The market position of the issuer (according to the research report of Sullivan Consulting, according to the domestic PEEK sales volume, the company's domestic market share in 2021 was 30.57%, ranking first, ahead of international PEEK manufacturers such as Vigers in the UK and Solvay in Belgium)
The situation of the industrial chain is as follows
The company's main products are PEEK pure resin (the highest proportion of revenue, more than 65%) and PEEK composite reinforced resin (the data has gradually increased in recent years, accounting for more than 20%), and there are also a small number of PEEK products
The downstream is mainly profile customers, which process various types of materials into parts by purchasing the company's resin into plates, rods and other profiles, and then sell them to parts processing companies
The gross profit margins of the company's main business were 48.33%, 47.97% and 44.63%, respectively, and the gross profit margin was relatively stable overall; In 2022, the company's gross profit margin decreased slightly, mainly due to the increase in the price of upstream raw materials fluorone and hydroquinone, and the unit cost of the company's products increased by more than the increase in sales prices. During the reporting period, pure resin granules and composite reinforced products contributed about 90% to the company's gross profit, which was the main source of gross profit of the company's main business.
The composition of expenses during the period is as follows (management expenses and selling expenses continued to decline, and R&D expenses were relatively stable)
Operating performance (25.24% compound growth rate from 2020 to 2022)
January-September performance forecast (revenue maintained steady growth, profit fluctuated slightly, mainly due to cost fluctuations)
Industry situation and peer comparison
According to Sullivan's forecast, the demand for PEEK products in China will continue to grow at a compound annual growth rate of 16.82% between 2022 and 2027, and is expected to reach a scale of 5,078.98 tons in 2027.
Peer comparison
Gross profit comparison (compared with Vigers is a disadvantage, but compared with domestic counterparts there are obvious advantages, mainly in product differentiation and cost control)
New suggestions: polyetheretherketone (PEEK) because of its unique material, downstream applications are wide, from electronic information, aerospace, to medical, and new energy are involved, and the added value of the product elasticity is high, like Vigers's medical-grade products gross profit is as high as 85%, the issuer scale is the first in China, the downstream of the product is currently mainly concentrated in electronic information, the field of new energy is gradually developed, aerospace and medicine are slightly involved, the IPO is mainly to develop PEEk products, improve its industrial chain. Overall, the growth of industry demand is expected to be stable, and the issuer's valuation is slightly higher but in a reasonable range, giving a new score of 60 points, which can be subscribed.