On April 10, Tianqin equipment soared by more than 10%.
In terms of news, recently, the People's Bank of China announced the establishment of scientific and technological innovation and technological transformation re-loans, and the Ministry of Industry and Information Technology and other seven departments jointly issued the "Implementation Plan for Promoting Equipment Renewal in the Industrial Field", and large-scale equipment renewal policies have been implemented.
The agency believes that this equipment update is estimated to have a market space of about 5 trillion yuan, exceeding the total scale of equipment investment in key areas such as industry and agriculture in 2023 (4.9 trillion yuan), about 40% of the national equipment and equipment purchase investment in 2023, which is expected to strongly boost market demand.
Based on the R&D and manufacturing of protective devices, Tianqin Equipment Co., Ltd. has always adhered to the development strategy of independent innovation and high-end manufacturing, and actively responded to the national strategic planning of "Made in China 2025" and "Civil-Military Integration".
Introduction and main business of Tianqin Equipment
During the reporting period, the company's main revenue came from military products, and its main products and services include special protective devices, equipment parts, technical services and others, among which special protective devices are the company's most important products. The company's products are not only widely used in the field of multi-service military equipment such as land, sea, air and rocket forces, but also can be used in the field of civilian protection, which is a dual-use product. The company is a national high-tech enterprise, and has obtained the relevant licenses and certifications from the military and industry authorities to engage in military supporting business. In 2015, the company was rated as "Advanced Unit in Ordnance Industry" by Hebei Provincial Association of Defense Science and Technology and Hebei Ordnance Industry Association by virtue of its technical research on a number of large-caliber ammunition protection devices, and in 2016, it was awarded the "May Day Labor Medal of Hebei Province" by the Hebei Provincial Federation of Trade Unions by virtue of the company's R&D team's scientific research achievements for many years and the company's overall contribution to the cooperation and supporting work of national defense science and technology industry.
The concept of Tianqin equipment stock ownership
Specialized, special and new, Hebei plate, plastic products, military industry, institutional heavy warehouse, financing and securities lending, offshore equipment, GEM comprehensive, military-civilian integration.
What is the status of Tianqin equipment industry?
From the perspective of operating income, Tianqin Equipment ranks 133rd below the industry average.
What is the basic situation of Tianqin Equipment's stock issuance?
The total share capital of Tianqin Equipment is 157 million shares, of which the number of outstanding A shares is 101 million shares. As of April 10, the total market capitalization was 2,179.7 million, the circulating market value was 1,403.4 million yuan, and the price-earnings ratio was 67.67. The number of shareholders is 18,400. The largest shareholder is Song Jinsuo, with the top ten shareholders accounting for 48.06%.
What about the financial data of Tianqin Equipment stock?
According to the third quarter report of 2023, Tianqin Equipment's total revenue was 43 million yuan, and the net profit attributable to the parent company was 100 million yuan, with a year-on-year increase of 36.36% in total revenue and a year-on-year increase of 108.95% in attributable net profit.
As of December 31, 2023, the operating income of other manufacturing industries was 154 million, with a revenue ratio of 99.70%, and by product, the operating income of professional protective devices was 151 million, with an operating income of 97.46%.
Executive Profile:
Song Jinsuo: male, born in April 1953, Chinese nationality, no right of permanent residence abroad, college degree, economist title. From April 1973 to May 1987, he served as a technician of Qinhuangdao Fiberglass Factory, from June 1987 to April 1996, as the deputy director of Qinhuangdao Fiberglass General Factory, from May 1996 to July 1997, as an executive director and general manager of the Company from December 1997 to June 2014, as the general manager of the Company from January 2022 to February 2023, as the chairman of the Company since July 2014, and as the chairman of Tianjin Licai Digital Technology Co., Ltd. since December 2017.
Wanhe Securities: The upgrading of high-end equipment and durable goods has been accelerated, and the standards for energy conservation and consumption reduction have become stricter
On March 13, the State Council issued the Action Plan for Promoting Large-scale Equipment Renewal and Trade-in of Consumer Goods (hereinafter referred to as the "Action Plan"). The "Action Plan" proposes four major actions: equipment renewal in seven major fields such as industry, agriculture, construction, transportation, education, cultural tourism, and medical care, replacement of durable consumer goods such as automobiles and home appliances, enhancement of recycling and recycling, and improvement of technical standards such as energy consumption, supplemented by supporting special classes and implementation plans, financial support, tax support, financial tools and innovation support. The target is that by 2027, the scale of equipment investment in the seven major fields will increase by more than 25% compared with 2023, the main energy-using equipment in key industries will basically reach the energy-saving level, the proportion of production capacity with environmental protection performance will be greatly increased, the penetration rate of digital R&D and design tools and the numerical control rate of key processes in industrial enterprises above designated size will exceed 90% and 75% respectively, the recycling volume of scrapped vehicles will increase by about double that of 2023, the transaction volume of second-hand cars will increase by 45%, and the recycling volume of waste household appliances will increase by 30% The proportion of recycled materials in the supply of resources has been further increased.
The equipment market is expected to boost significantly
In 2019~2021, the purchase of equipment and tools in the completion of fixed asset investment was in a year-on-year decline, and in 2022, the state introduced encouraging policies including the establishment of special re-loans for equipment renovation and transformation, and the year-on-year growth rate of the purchase amount in that year returned to positive and reached 3.5%, and further increased to 6.6% in 2023. The equipment update is estimated to have a market space of about 5 trillion yuan, exceeding the total scale of equipment investment in key areas such as industry and agriculture in 2023 (4.9 trillion yuan), about 40% of the national equipment and equipment purchase investment in 2023, which is expected to strongly boost market demand.
High-end equipment is expected to benefit significantly The "Action Plan" requires that in key industries such as steel, nonferrous metals, petrochemicals, chemicals, building materials, electric power, machinery, aviation, shipbuilding, textile, and electronics, vigorously promote the upgrading and technological transformation of production equipment, energy-using equipment, power generation, transmission and distribution equipment, etc. On the one hand, it will improve the level of digitalization and intelligence, and on the other hand, it will emphasize aiming at a higher level of technical standards in all aspects, and solve the problem of "stuck neck" of major technical equipment in the upgrading of traditional industries with innovative products. We believe that large-scale high-end equipment such as industrial robots, machine tools, which are directly related to production efficiency and product level, and play an important role in the construction of new quality productivity, will become the key beneficiaries, ushering in the increase in demand and technical level requirements. Taking industrial robots as an example, the density of manufacturing robots in mainland China in 2022 will be 392 units/10,000 workers, and the goal will reach about 500 units/10,000 workers in 2025.
Life cycle and product upgrading form the thrust of durable consumer goods
The 2009 round of home appliances to the countryside, trade-in activities have basically reached the service life of durable consumer goods, and the current stock of more than 3 billion home appliances can release a broad replacement space. At the same time, the home appliance market has also entered the era of intelligence, and the demand for upgrading is growing, in the Ministry of Commerce and other 13 departments issued in July 2023 "Notice on Several Measures to Promote Home Consumption", it is mentioned that it is necessary to improve the supply of green, intelligent and suitable home decoration. In the automotive field, the 336 million civilian car ownership also has a huge market space to tap under the wave of electrification and intelligent vehicles. The growth of consumption will play a key role in economic growth, with final consumption expenditure contributing 82.5% to economic growth in 2023, driving economic growth by 4.3 percentage points, an increase of 43.1 pct and 3.1 pct respectively from 2022.
Environmental protection and energy consumption requirements have become key indicators in this round, and energy consumption requirements are constantly tightened as the "dual carbon" target node is approaching. In February 2023, the National Development and Reform Commission and other departments issued the "Guiding Opinions on Coordinating Energy Conservation, Carbon Reduction and Recycling to Accelerate the Renewal and Transformation of Products and Equipment in Key Areas", which put forward specific requirements for the improvement of the thermal efficiency of boilers and the increase in the proportion of high-efficiency and energy-saving products in electrical and electrical equipment such as home appliances and refrigeration. In February 2024, seven departments, including the Ministry of Industry and Information Technology, issued the "Guiding Opinions on Accelerating the Green Development of the Manufacturing Industry", and the National Development and Reform Commission also updated the "Advanced Level of Energy Efficiency, Energy Conservation and Access Level of Key Energy-using Products and Equipment". In the 2024 government work report, it is proposed to reduce energy consumption per unit of GDP by 2.5%. It is expected that in this round of equipment renewal, energy consumption and environmental protection indicators will become an important factor in eliminating existing equipment, and at the same time, new equipment and consumer goods will be certified and screened with the help of standard improvement to reduce the proportion of high-energy consumption products. Taking the field of railway transportation as an example, work has been carried out in advance to plan to eliminate old diesel locomotives + formulate diesel locomotive emission standards and improve and update subsidy policies + promote the use of new energy locomotives to complete the reduction of energy consumption levels.
Risk Warning:
The policy is not as good as expected, and the risk of raw material price fluctuations.
Source:
Wanhe Securities-Machinery and Equipment: High-end equipment and durable goods have been upgraded and accelerated, and the standards for energy conservation and consumption reduction have become stricter-20240315
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