On the morning of May 13, with the sound of a gong, Chengdu Reddy's Intelligent Drive Technology Co., Ltd. (hereinafter referred to as "Reddy's Intelligent Drive") was officially listed on the Growth Enterprise Market of the Shenzhen Stock Exchange. As a result, Reddy's has entered a new stage of high-quality development with the help of the surging power of the capital market.
According to the prospectus, Reddy's is a high-tech enterprise dedicated to the research and development, production and sales of key components of automation equipment transmission and braking systems. The company's products include precision transmission parts, electromagnetic brakes and harmonic reducers, which are widely used in CNC machine tools, robots, elevators and other fields.
In recent years, Reddy's has always accurately grasped the market demand, guided by customer needs, and achieved stable growth in performance. In the future, with the continuous development of the industry, with the support of capital, Reddy's will achieve rapid development and bring more returns to shareholders.
Actively reward shareholders
At present, A-share listed companies actively give back to investors in the form of cash dividends, which not only reflects the company's sense of responsibility to shareholders, but also demonstrates the company's long-term value.
In terms of rewarding shareholders, Reddy's has been at the forefront of the market and has paid dividends many times before listing. According to the prospectus, the company paid cash dividends in 2019, 2020 and 2021, of which the cash dividend amount in 2022 was as high as 31.0039 million yuan.
The continuous ability to pay dividends shows that the company has achieved good performance and stable profitability in operation. According to the prospectus data, in terms of finance, the operating income of Reddy's Intelligent Drive from 2021 to 2023 will be about 567 million yuan, 587 million yuan, and 585 million yuan respectively, and the corresponding net profit will be about 69.542 million yuan, 81.5013 million yuan, and 100 million yuan respectively. It is estimated that from January to March 2024, Reddy's operating income will be about 130 million yuan to 142 million yuan, a year-on-year increase of -2.87% to 5.93%, and still maintain a growth momentum.
The steady rise in performance is due to Reddy's accurate grasp of market demand. The company's customers have different individual needs for products, so the company adheres to the guidance of customer needs, carries out detailed design and development of products, technologies and processes according to different project backgrounds, application scenarios, technical index requirements, etc., and controls the whole process of product development. At the same time, the company has been paying close attention to the latest developments in the industry, communicating with customers in a timely manner about the advanced technology in the industry, and improving customer viscosity.
In the future, Reddy's is expected to bring sustainable returns to shareholders. The development of the company's industry is closely related to the expansion of downstream industrial automation applications, and the downstream industry has entered a stage of rapid development, and there is no small space for development. The company's products are used as rigid necessities and consumables in automation equipment, including electromagnetic brakes, precision transmission parts and harmonic reducers, etc., which are widely used and in huge demand.
Attaches great importance to R&D
With the continuous expansion of the application field of industrial automation equipment and the continuous enrichment of application scenarios, the transmission and braking system parts manufacturers are required to have strong technical research and development capabilities.
Reddy's has strong R&D and innovation genes. From 2021 to 2023, the R&D expenses of Reddy's Intelligent Drive will be 21.4795 million yuan, 27.8541 million yuan and 32.9811 million yuan respectively, and the proportion of R&D expenses to operating income will be 3.79%, 4.74% and 5.64% respectively, and the company's R&D investment will increase year by year.
The continuous investment has enabled Reddy's to win many honors and achieve fruitful results. In November 2022, Reddy's was awarded the "Specialized, Specialized and New" SME in Sichuan Province by the Sichuan Provincial Department of Economy and Information Technology. In September 2023, it was awarded the fifth batch of specialized, special and new "little giant" enterprises assessed by the Ministry of Industry and Information Technology.
In addition, as of the end of 2023, Reddy's has obtained 114 patents and 9 computer software copyrights closely related to core technologies, including 27 invention patents, 84 utility model patents, 1 overseas utility model patent, and 2 design patents.
It is commendable that Reddy's has deep technical reserves, and is one of the few manufacturers in the industry that has product design, manufacturing and testing and verification as one of the precision transmission parts, electromagnetic brakes and harmonic reducers. The company has established a joint laboratory and talent training base with the University of Electronic Science and Technology of China, engaged in the research of transmission and braking technology, and has obvious technical advantages in the development of new products and the undertaking of scientific research topics. In recent years, Reddy's has undertaken a total of 16 provincial and municipal scientific research projects. Among them, there are 13 provincial scientific research projects and 3 municipal scientific research projects.
Create a competitive advantage
Reddy's actively builds competitive advantages and keeps itself at the forefront of the industry.
The competitive advantage continues to expand, which is reflected in the change in gross profit margin. From 2021 to 2023, Reddy's comprehensive gross profit margin will be 27.30%, 28.38% and 32.88%, respectively, showing an upward trend.
How? The competitive strategy of Reddy's intelligent drive is mainly reflected in the two aspects of the client and the product side: the client, the downstream customers have a high entry threshold, and the certification is difficult, the company has passed the long-term supply verification of many industries by virtue of the technical advantages of efficient customized design and product quality advantages, locked the leading high-quality customers in the industry, and established a stable cooperative relationship; On the product side, it is based on the business strategy of "stable wings + core upgrade". "Stable wings" refers to the precision transmission parts and electromagnetic brake products as the two wings of the company's stable development, focusing on the development of key customers, optimizing and upgrading products in existing application fields, and constantly developing new products, entering new application fields, and steadily increasing market share at home and abroad by virtue of customer advantages and quality advantages.
It is based on the strong technical strength as the support, the members of the "circle of friends" of Reddy's intelligent drive are not small. It is understood that the company's customers are mainly global or domestic well-known enterprises in the downstream field, such as Inovance, a leading domestic industrial automation company, Hitachi Elevator, Otis Elevator and Toshiba Elevator, a well-known global elevator manufacturer, and an internationally renowned transmission parts company, such as Lingfeida of Germany, Tsubakimoto Machinery of Japan and Fenner Transmission of the United States.
Looking forward to the future, with the successful landing of Reddy's Intelligent Drive on the GEM, the fundraising project can achieve a total annual production capacity of 3.59 million sets of new electromagnetic brakes, providing a strong guarantee for the realization of the company's overall development strategic goals, and expanding the future development space while further improving profitability.