text｜Hexun Finance Zhang Xingyu
blower is an important process equipment that provides gas power in industrial production. At present, the blowers produced by Chinese enterprises are mainly traditional blowers such as Roots blowers, single-stage gear speed blowers, multi-stage centrifugal blowers, and other traditional blowers. Although the air-suspended centrifugal blowers and magnetic levitation centrifugal blowers are more efficient, there are few companies with corresponding R&D and production capabilities.
Nowadays, a company with magnetic levitation centrifugal blowers as its core business has entered the capital market. On September 7, Nanjing Cigu Technology Co., Ltd. (hereinafter referred to as "Cigu Technology") disclosed the "Announcement on the Issuance of Stocks and Listing on the Science and Technology Innovation Board", intending to issue 17.8153 million new shares with an issue price of 32.9 yuan per share, and is expected to raise 586 million yuan. This also marks the official birth of the "first stock in commercial application of magnetic levitation technology".
magnetic levitation centrifugal blower business revenue accounts for more than 90%. It has abundant orders in hand
Founded in 2006, Cigu Technology is the first domestic enterprise to use magnetic levitation technology to create centrifugal blower products. Its main business is the research and development, production and sales of core components such as magnetic levitation fluid machinery and magnetic levitation bearing , high-speed motors, and high-speed drives.
From 2019 to 2021, Cigu Technology achieved operating income of 213 million yuan, 251 million yuan and 312 million yuan, respectively, and achieved net profit of 41.1263 million yuan, 48.2451 million yuan, and 59.7593 million yuan, respectively, with steady growth in performance. At the same time, the company's gross profit margin "leading" its peers, with outstanding profitability, at 47.87%, 44.71%, and 39.72%, respectively.
Source: Prospectus
points of product, Cigu Technology's main products include magnetic levitation centrifugal blowers, magnetic levitation air compressors, and magnetic levitation chillers. Among them, the magnetic levitation centrifugal blower is the company's core revenue source, achieving sales revenue of 206 million yuan, 244 million yuan and 283 million yuan from 2019 to 2021, respectively, accounting for more than 90% of the operating income of each period.
Source: Prospectus
According to Xiao Lanhua, director, financial director and secretary of the board of directors of Cigu Technology, as of April 30, 2022, the company's products were 297 million yuan in hand orders, and the orders in hand were in good condition.
It should be pointed out that more than 90% of the operating income comes from the same product, which means that Cigu Technology also faces certain single product structure risks. In order to change this situation, the company is actively carrying out new product research and development, expanding the application areas of core technologies, and launching new products such as magnetic levitation air compressors, magnetic levitation chillers, and magnetic levitation vacuum pumps.
In 2021, the above three new products achieved sales revenue of RMB 12.5619 million, RMB 2.8319 million and RMB 1.284 million respectively, accounting for 4.17%, 0.94%, and 0.43%, which is expected to become an important source of future revenue for Cigu Technology. However, the promotion of new products requires a certain period of time and the new market still needs to be cultivated and promoted. This listing is expected to provide an important opportunity for the development of new businesses.
industry competition is fierce, and it continues to independently develop and build the first stock in the sub-sector
my country's blower manufacturing began in the 1950s. It started late compared with leading foreign companies, and the industry competition is fierce, and the oligarchical pattern has not yet been formed. By subcategory, the domestic market is still dominated by traditional blowers, with magnetic levitation centrifugal blowers accounting for less than 20%, and the output value in 2020 accounts for only 16.63%.
took only more than 10 years. Magnetic Valley Technology has become one of the few companies that have made major breakthroughs in magnetic levitation bearing technology and other coupled technologies and achieved mass production. Why can companies be at the forefront in such a segmented application track?
As the concept of magnetic levitation proposed in the mid-19th century, this technology was mastered by foreign companies for a long time in the past. The bottleneck of technology once made domestic companies "sigh" with magnetism. Against this background, Cigu Technology insists on continuous independent research and development. From 2019 to 2021, the company's R&D investment was RMB 15.1904 million, RMB 19.7799 million, and RMB 24.2259 million, respectively, with R&D expense rates of 7.12%, 7.87%, and 7.77%, respectively, which is far higher than the average R&D expense rate of peers.
Source: Prospectus
At present, Magnetic Valley Technology has formed core technologies such as five-degree of freedom magnetic levitation bearings, high-power high-speed permanent magnet synchronous motor , high-speed motor special variable frequency driver, high-speed high-efficiency centrifugal impeller, etc., with 321 authorized patents and 18 authorized software copyrights, and a series of research and releases of an independent R&D team with a high-level and complete structure.
uses R&D strength as the endorsement of . With its strong competitive products and excellent sales team, Cigu Technology has continuously explored the downstream market and gradually established the brand of domestic high-end magnetic levitation blowers. China Construction , Sinopec , Zhongyuan Energy Saving, Sinochem Group , BOE , Beikong Water, Wanhua Chemical (600309), Jinneng Group , Angel Yeast (600298), Weierli (300190), Shenghong Group, Formosa Plastics Group and other well-known state-owned enterprises and listed companies have become customers of the company. High-quality customer funds have laid a solid foundation for the company's subsequent business expansion.
product realizes "two substitutions" to help the blower industry develop with high quality
At present, the magnetic levitation centrifugal blower developed and promoted by Cigu Technology is realizing "two substitutions".
is to realize import substitution. The development of my country's blower industry has gone through the process of technology introduction, digestion and absorption, independent innovation and import substitution. The same is true for high-end products represented by magnetic levitation centrifugal blowers. Before 2000, the products were mainly monopolized by foreign manufacturers, and their products were mainly imported. Domestic manufacturers do not yet have the ability to independently develop and produce. It was not until 2009 that Cigu Technology developed the first magnetic levitation centrifugal blower in China and successfully applied it, filling the domestic gap and replacing imports. In the past 10 years, the company not only completed the series of magnetic levitation centrifugal blowers, but also extended and developed into other magnetic levitation fluid equipment products.
Compared with foreign brands, Cigu Technology products have obvious cost-effective advantages, quick after-sales response and timely timely. They have covered all provinces and cities across the country and are widely used in more than 2,000 projects such as Jiangsu, Zhejiang, Shandong, Sichuan, Guangdong, and Xinjiang. They not only gradually occupy the domestic market of imported products, but are also expected to open up overseas markets in the future. In addition to the company, some domestic companies have gradually joined the development team of magnetic levitation centrifugal blowers, and the overall degree of localization of the blower industry has increased.
The second is to realize traditional substitution. With the proposal of the " carbon peak " and "carbon neutrality" timetable, achieving green and sustainable development in various industries has been put on the agenda. As an industrial general equipment widely used in various industries, blowers have also shown a trend of high efficiency, high speed, low noise and intelligence. In other words, the market prospects of magnetic levitation centrifugal blowers with the advantages of energy conservation and high efficiency and low noise are broad. In order to meet the national policy requirements for energy conservation and carbon reduction, downstream customers will give priority to this product when building or renovating projects.
Compared with traditional blowers, Cigu Technology products have great advantages in energy saving, noise reduction and maintenance costs. The products are more efficient, more reliable, and have a longer service life. They save about 25%-30% energy compared with traditional blowers. At present, the company's products mainly replace traditional blowers in the field of sewage treatment, and have begun to be used in the fields of biofermentation, material transportation, desulfurization and oxidation, and have gradually expanded to other fields.
Taking this listing as an opportunity, Cigu Technology plans to raise 450 million yuan of funds, of which 240 million yuan will be used to invest in the "high-efficiency and intelligent integrated magnetic levitation fluid equipment production and construction project". In the company's existing new series of magnetic levitation centrifugal blowers and expand new application fields based on core technology, the product structure will be further optimized and the application fields will be further expanded; 90 million yuan will be used to invest in the "R&D center construction project", and on the basis of the company's existing R&D department, the R&D software and hardware environment will be further optimized, the company's R&D strength will be enhanced, and the research and development of new products will be accelerated; 120 million yuan will be used to supplement working capital.
Source: Prospectus
Chairman of Cigu Technology Wu Lihua said that logging into the capital market will be an important milestone in the company's development history.After listing, the company will not forget its original aspiration and continue to deepen its application of cutting-edge technologies in "magnetic levitation" on the road of capital empowerment, actively respond to the national "dual carbon" strategy, continue to make efforts to promote energy conservation and consumption reduction in the country, and contribute to the circular economy and energy conservation and environmental protection.
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