As an important manufacturer of permanent magnet materials in China, Zhongke Magnetic Industry is committed to becoming the world's leading permanent magnet application solution provider in the field of new generation consumer electronics and energy-saving household appliances. From 20 19 to 202 1 year, the average compound annual growth rate of operating income and net profit of Zhongke Magnetic Industry reached 44.79% and 74.03%, respectively, while the comparable companies corresponding to the average index were 25.29% and 46.60%, respectively, and the growth rate of the company was significantly higher than the average level of comparable companies in the same period.
In the long run, Zhongke Magnetic Industry still has high investment value and is an ideal investment target for value investors.
Long-term service to high-end customers at home and abroad
China is the country with the largest output of permanent magnet materials in the world. In recent years, the domestic permanent magnet materials industry has achieved leap-forward development, forming a R&D center with large and medium-sized enterprises as the backbone, strong R&D strength, complete product categories and relatively stable layout. D. integrated industrial system integrating production and service. The specifications and varieties of domestic permanent magnet materials are increasing, and the performance of products is improving rapidly. Some products have reached or approached the advanced level in the world, which is to further participate in global competition.
As an important manufacturer of permanent magnet materials in China, Zhongke Magnetic Industry is committed to becoming the world's leading permanent magnet application solution provider in the field of new generation consumer electronics and energy-saving household appliances. The characteristics of high growth all come from core technologies or products, and the innovative ability of Zhongke Magnetic Industry can support long-term sustainable development.
After years of independent research and development and production practice, Zhongke Magnetic Industry has completely mastered the core technology of producing permanent magnet materials, and has a number of invention patents in related fields. The prospectus shows that the permanent magnet materials produced by the company can be widely used in consumer electronics, energy-saving household appliances, industrial equipment, automobile industry, wind power generation, intelligent manufacturing, power tools and many other fields.
It is understood that Zhongke Magnetic Materials has many brands and complete specifications, forming a relatively complete product cluster, which can fully meet the diversified needs of the downstream market.
It is worth noting that Zhongke Magnetic Industry has long been committed to serving high-end customers at home and abroad. The main customers are the leading manufacturers of electro-acoustic devices and permanent magnet motors in the industry, such as Korean Star Daqi, Kone Electronics, EM-Tech, Dongke Holdings, Goer, Ling Wei Electric, Wolong Electric Drive and other related customers. Products are mainly used in Samsung, Harman, Sony, Huawei, Xiaomi, Amazon and Midea.
Short-term performance fluctuations can't hide the company's bright spots.
Affected by the downward price of raw materials such as Pr and nd and public health incidents, it is estimated that the operating performance of Zhongke Magnetic Industry in the first quarter of 2023 will decline to a certain extent compared with the same period of last year. According to preliminary estimation, the expected operating income range is 1 100 million yuan to10.25 billion yuan; The net profit range is130,000 yuan-180,000 yuan.
Short-term performance fluctuation is still difficult to hide the bright spot of Zhongke Magnetic Industry, a new star enterprise in the industry. According to insiders, in the long run, the high-quality growth trend of Zhongke Magnetic Industry will not change, and it still has high investment value and is an ideal investment target for value investors.
It is understood that Zhongke Magnetic Industry has technical expertise in the production and processing of miniaturization, thinning and precision magnets, and has accumulated a certain number of downstream customers. In order to achieve rapid development, Zhongke Magnetic Industry has long adopted a differentiated competition strategy, focused on subdividing the track, concentrated superior resources to expand high-quality customers, and gradually formed a relative competitive advantage in the fields of consumer electronics and energy-saving household appliances.
The moat built around the advantages of technology and customer resources ensures that Zhongke Magnetic Industry can maintain the competitive advantage of sub-sectors, further expand market share and promote performance growth.
From 20 19 to 202 1, the operating income of Zhongke Magnetic Industry was 260 million yuan, 378 million yuan and 545 million yuan respectively. The net profit is 28 1 12600 yuan, 5643700 yuan and 85 146200 yuan respectively. In the past three years, the compound annual growth rate of operating income and net profit returned to the mother was 44.79% and 74.03% respectively, while that of comparable companies in average index was 25.29% and 46.60% respectively. The growth of Zhongke Magnetic Industry is obviously higher than the average level of comparable companies in the same period.
It is understood that at present, the core business and operating environment of Zhongke Magnetic Industry have not undergone major adverse changes, the business operation and performance level are still in a normal state, and the profitability remains stable. Overall, it has maintained a general trend of sustained growth. With the coming of economic recovery cycle, the prosperity of permanent magnet materials industry is expected to rebound sharply, and the recovery of downstream demand will be beneficial to the rapid growth of Zhongke magnetic industry.
Broad market space and sustainable performance growth.
Considering the publication of the Regulations on Rare Earth Management (Draft for Comment) and the standardization trend in the upstream of the rare earth industry, combined with the previous market rules and production practices, it is judged that the short-term price fluctuation of raw materials has a short-term impact on the price and gross profit margin of Zhongke Magnetic Industry products, and there will be no unlimited sharp increase or decrease.
"With the gradual restoration of short-term influencing factors, key rare earth raw materials such as Pr and nd will inevitably return to the reasonable price range." The industry believes that this is conducive to maintaining the security and stability of the core raw material supply chain and maintaining the reasonable profit level of Zhongke magnetic materials products. "The high-quality development of the rare earth industry is also conducive to promoting more downstream demand and the downstream expansion and application of permanent magnet materials, thus promoting the long-term stable and good growth of the operating performance of Zhongke Magnetic Industry.
Under the background of the rapid development of information technology and the upgrading of information consumption, new concepts and new demands are more likely to arise in the field of consumer electronics, and artificial intelligence, 5G, hyperuniverse, wearable devices, wireless charging and other fields are booming. As a cutting-edge technology-intensive consumer field, the performance and quality requirements of consumer electronics products for permanent magnet materials are gradually improving, and the industry concentration is expected to be further improved. For Zhongke Magnetic Industry, this is also a great opportunity to further expand its market share.
At the same time, the momentum of global household appliance frequency conversion iteration is still strong. Analysts believe that leading household appliances enterprises such as Midea and Gree will continue to expand their demand for permanent magnet materials, and new products in the next era will be launched one after another. Traditional motor manufacturers such as Wolong Electric Drive will further increase the proportion of DC variable frequency motors, and the product iteration of many second-and third-tier home appliance enterprises is also in the stage of gradually starting or about to enter the peak demand.
Considering that the cooperation between Zhongke Magnetic Industry and super brands such as Samsung and Midea in the field of energy-saving household appliances has been greatly strengthened, with the arrival of a new round of peak demand for permanent ferrite, Zhongke Magnetic Industry has a good business development prospect in the field of energy-saving household appliances and is expected to become an important growth pole in future performance.
The implementation of fundraising projects will accelerate growth.
After the successful implementation of the fundraising project of Zhongke Magnetic Industry, 6000 tons of high-performance motor magnetic tiles and 1000 tons of high-performance NdFeB magnetic steel will be added. It should be pointed out that the configuration of the new production line is optimized according to the current mainstream first-line standards of the industry and in-depth combination with the technical characteristics of Zhongke Magnetic Industry. The operation capacity of equipment is more advanced, and the allocation ratio of process capacity is more reasonable, which is conducive to improving the overall production efficiency of Zhongke Magnetic Industry.
According to industry insiders, the market positioning of new production line products will be more forward-looking. The production line is highly suitable for customized production of new products in emerging fields such as 5G communication, new energy vehicles, intelligent manufacturing and energy-saving home appliances, which can further meet the high-end customization needs of downstream markets and customers, and the production capacity is expected to be fully released. According to the prospectus, the project is expected to increase the annual operating income of Zhongke Magnetic Industry by 3170,000 yuan, and the annual after-tax net profit is 49,435,400 yuan, with good economic benefits.
In order to meet the needs of potential customers and markets in the future, Zhongke Magnetic Industry actively carries out strategic technology reserves while expanding its production capacity to maintain its competitiveness in the future. On the basis of the existing technology, Zhongke Magnetic Industry focuses on the research and development of products in frontier fields such as 5G communication, intelligent terminals, new energy vehicles, cold adaptation and intelligent manufacturing. At present, the research and development of high-performance magnet modules for intelligent wireless charging equipment, NdFeB special-shaped magnets for intelligent wireless headphones, high-performance magnets for flexible motors for intelligent robots, and non-heavy rare earth sintered NdFeB magnets for wind power are under way, which will further strengthen the depth and breadth of technical reserves of Zhongke Magnetic Industry and ensure the company to be in new markets.
It is understood that Zhongke Magnetic Industry will continue to optimize capacity allocation in the future. On the one hand, the company will continuously increase the production equipment of bottleneck processes, optimize the equipment ratio of different processes, greatly liberate the production capacity of non-bottleneck processes and improve the comprehensive production efficiency of the production line; On the other hand, the company will dynamically adjust the product structure, concentrate resources to produce high-end products with high added value, and realize scale effect, thus promoting the growth of overall profit scale and further releasing production potential.
With the smooth implementation of fundraising projects, R&D is at the forefront; D With the continuous optimization of layout and capacity allocation, Zhongke Magnetic Industry can accept larger and more stable orders and realize the growth of performance and scale in the process of cooperation with more high-quality customers in new fields.