Today we want to talk about an interesting listed company. Jiangsu Liba Industrial Co., Ltd. (stock abbreviation: Liba Co., Ltd.) was established in 1994 and was listed on the main board of the Shanghai Stock Exchange in March 2015.
Liba Co., Ltd. mainly provides composite materials for home appliance shells to well-known home appliance complete machines at home and abroad. It is one of the most competitive enterprises in China specializing in the production of composite materials for home appliances. Its main products are film-coated board (VCM) series products and pre-coated board (PCM) series products, which are widely used in refrigerators, washing machines, water heaters, microwave ovens, air conditioners, high-end building door panels and other fields.
We checked the product revenue structure of its semi-annual report. Home appliance-related businesses account for 93%, and some other businesses; domestic sales account for 74%, and overseas sales account for 26%. In the main board, they are considered micro-listed companies, because not only are the assets and revenue small, but they are not even many people; by the end of 2021, the total number of employees was only 294, the total number of production personnel was 190, and their family had only 10 financial personnel.
, a company that looks uncharacteristic and whose main customers are not having a good life, achieved good operating results in the first three quarters.
From the perspective of revenue, it is still significantly affected by the downstream home appliance industry, with revenue falling by 6.9% year-on-year, which is different from the same period in 2020. At that time, it should have been temporarily affected by the epidemic, because it has returned "retaliatory" growth in 2021. Will it be the same this time? Judging from the current situation, it is a bit difficult.
Under such a severe situation, Liba shares' net profit increased by 5.7 times year-on-year to 500 million yuan, which is already 360 million yuan higher than the gross profit. Is this a pie falling from the sky, or is there something else?
gross profit margin has basically not changed from the same period last year. Under the current industry situation, it is good to maintain the current low gross profit margin. It is quite difficult to find home appliance manufacturers to raise prices. Fortunately, the prices of raw materials such as plastics have fallen this year, but judging from their situation, the changes in raw materials have not had obvious results.
Although their family has not made much profit in the past years, 's return on equity is still good, obviously the operating performance of most of their home appliance customers who are many times larger in size is better. The performance in the first three quarters of 2022 was impressive, making half of the company. This was the rhythm of using all the tricks such as "Eighteen Dragon Subduing Palms", "Sunflower Book", and "Star-Absorbing Technique".
Not to mention, their main business is not too depressed. Not only has the gross profit margin stabilized, but it has also increased by 0.1 percentage point, and the proportion of period expenses has also decreased. Miraculously, it was only 30 million yuan, accounting for 2.6% of revenue. Of course, this is mainly attributed to the financial expenses of this period from the original expense to the income.
This has to talk about their smaller scale advantages. My old leader told me that "there are more people and the easier it is to pay for money if there are fewer people." In fact, fewer people can spend less money. Looking at the scale of their management expenses, many non-listed medium-sized companies will feel shabby. However, this advantage is that the profit margin of their main business can be expanded, basically at a level of 10%.
However, 10% of revenue is only 10 million yuan. Where does the profit of the other hundreds of millions come from?
mainly means that the investment income is 480 million yuan, and the data from other comparable periods are crowded together. We don’t need to look at it at all. The reason is that it is so small that it is almost negligible. Their long-term equity investment is only 730 million yuan. Why is it so profitable? Even new energy and photovoltaic may not have this effect. I guess it is only the game where money makes money, that is, finance.
Liba Co., Ltd. has not many employees and a small team, but its business idea is still relatively active. It started private equity fund , and it is quite accurate. Once the investors went public, it was better than the home appliance shell business that they had been in for several years.
They have invested in more than one, and there are also ones who do similar businesses. It seems that they have the idea of promoting such businesses into regular businesses.
Liba Co., Ltd. has excellent long-term and short-term debt repayment capabilities, and has not learned the bad habits of crazy expansion like their downstream home appliance companies. In the case of long-term profits, except for a more conservative financial strategy, there is no other problem.
may be a long-term profit and a surplus of funds, which made them think of ways to deal with the downward trend of the industry in this way. Now it seems that the effect of such a decision is still good.
Some people say that the end of all businesses is finance, because doing specific businesses is about making money, and only finance is about making money. Liba Co., Ltd. interprets this sentence vividly as a company producing home appliance shells.
Statement: The above is a personal analysis and does not constitute investment advice to anyone!
#Home Appliances# #Private Equity#
