Strong digging: What is the material of Yongyue Technology with 8 boards?

Author|Zhao Ling,Editor|Gu Jinfeng

Source: Jufeng Investment Advisory, Good Stock Application

1. Yongyue Technology - the full beneficiary of the stock price of the low-altitude economy concept

Taking advantage of the east wind of the low-altitude economy, the share price of Yongshui Technology has recently risen from 4.88 yuan to 10.48 yuan, and if it is calculated from a low of 2.96 yuan, the stock price has more than doubled in just one month. And there must be funds behind the 8 boards, so whether this pursuit is groundless, or is there material behind this company, let's dig deep together today.

Second, the main business and founder team of Yongyue Technology

In the continuous rise of the stock price, Yongyue Technology issued an announcement to remind that the current stock price increase does not match the company's performance. The company expects to achieve a net profit attributable to shareholders of listed companies of -69 million yuan to -58 million yuan in 2023. In the first three quarters of 2023, the company's revenue was about 237 million yuan, the net profit loss attributable to the parent company was about 30.6715 million yuan, and the net cash flow from operating activities was -26.3172 million yuan.

Since the performance is not carried out, let's see what the company does. It is understood that Yongyue Technology is one of the manufacturers with a complete variety and a wide range of applications in the field of unsaturated polyester resins in China. In 2022, on the basis of the main business of unsaturated polyester resin, the company will expand into the field of drone industry, forming two major business segments: unsaturated polyester resin and drone business. As of the third quarter of 2023, the operating income of the company's drone business is about 2.8 million yuan, accounting for only 1.18% of Yongyue Technology's current revenue. In 2022, the revenue generated by the company's intelligent unmanned aerial vehicle contract will only be 54,900 yuan.

The downstream uses of unsaturated polyester resins are mostly raw materials and coatings in building materials, or used in plastics, and can also be mixed with other materials to make various chemical composites to increase the strength, temperature resistance and corrosion resistance of materials. In this way, we can see that there is a certain correlation between the company's two major businesses, and the drone business is an extension of the original business.

In addition, Yongyue Technology said that it signed a "Procurement Contract" of 114 million yuan with Jiangsu Zhongchuan Huaxia New Media Technology Co., Ltd. in August 2022, but Jiangsu Zhongchuan Huaxia New Media Technology Co., Ltd. did not continue to perform in accordance with the relevant provisions of the contract after paying a deposit of 5 million yuan and a payment of 5 million yuan on August 17, 2022 and December 27, 2022 respectively, so there is a significant risk of uncertainty in the performance of the contract, and the company will take legal measures to protect the company's rights and interests in the future.

It is worth mentioning that, according to Jiemian News, at present, Yongyue Technology is in the period of being investigated. In August 2023, Yongyue Technology disclosed a sales contract for 5,000 drones, which attracted widespread attention in the market. But less than half a month later, the contract was terminated. The company immediately received a regulatory fine, and Yongyue Technology, the actual controller and then chairman Chen Xiang were taken by the Jiangsu Securities Regulatory Bureau to issue a warning letter of supervision and management measures, and recorded in the integrity file of the securities and futures market.

Third, the bright prospects of the low-altitude economy

On March 18, the Civil Aviation Administration of China held a meeting of the General Aviation Work Leading Group to study and implement the major decision-making and deployment requirements of the Party Central Committee and the State Council on building strategic emerging industries of low-altitude economy, and promote the high-quality development of low-altitude economy.

Since 2023, the mainland has successively issued documents such as the Interim Regulations on the Flight Management of Unmanned Aerial Vehicles, the Regulations of the People's Republic of China on Airspace Management (Draft for Comments), and the Outline for the Development of Green Aviation Manufacturing Industry (2023-2035). The electric vertical take-off and landing (eVTOL) (colloquially known as "flying cars") and the related EV battery technology are eye-catching.

With the low-altitude economy being written into the government work report, the development of the mainland's low-altitude economy has ushered in a period of major opportunities. Beijing, Guangdong, Anhui and other places have issued important measures to support the cultivation of low-altitude economic industries. According to the data of the State Council Information Office, the scale of China's low-altitude economy will exceed 500 billion yuan in 2023, and it is estimated that it will exceed 2 trillion yuan by 2030. According to the Civil Aviation Administration of China, the market size of China's low-altitude economy is expected to reach 1.5 trillion yuan in 2025 and 3.5 trillion yuan by 2035.

Fourth, the key links of the low-altitude economic industrial chain

At present, the domestic low-altitude economy mainly involves air traffic control systems, flying cars, helicopters and unmanned aerial vehicles.

As an important part of the air traffic control system, it is composed of air traffic management system (ATM) and peripheral facilities communication, navigation and surveillance (CNS) equipment, which plays a central role in low-altitude airspace management. Looking back at the development of the general aviation industry in the United States, perfect infrastructure construction is an important condition for the development of the aviation industry, and the low-altitude economic infrastructure related fields represented by the air traffic control system in the mainland are expected to benefit first, and the market size is expected to exceed 40 billion yuan by 2030.

Batteries are the core bottleneck of the current eVTOL development, and the medium-term (2030-2040) solid-state/semi-solid/condensed matter batteries may make a breakthrough, and the long-term (post-2050) hydrogen power batteries may be a better solution, and carbon fiber is expected to benefit from the rapid growth of eVTOL.

Helicopters and unmanned aerial vehicles (UAVs) belong to the original things in the low-altitude economy, and flying cars may be the main force and trend of the development of the low-altitude economy.

In any case, in the first year of low-altitude economic development, the subdivision of UAVs may be difficult to support the company's continuous market value increase in terms of scale and key core technologies.

Fifth, the Dragon and Tiger List is revealed

According to the Yongyue Technology Dragon and Tiger List, among the top 5 net purchases of the company yesterday, well-known players such as Zhang Mengzhu were on the list. The well-known chapter alliance generally refers to the seat of Guotai Junan Securities Co., Ltd. Shanghai Jiangsu Road Securities Business Department.

(Author: Zhao Ling, Practicing Certificate: A0680615040001)

Disclaimer: The above content is for reference only and does not constitute specific operation advice, and you shall operate at your own risk and profit and loss