Author: Lin Shen
In recent years, with the increasing lightness of 3C electronic products represented by laptops, the number of interfaces has been continuously streamlined, the problem of insufficient number of interfaces in new equipment is becoming increasingly prominent, and the demand for interface conversion and expansion has grown rapidly; at the same time, with the continuous advancement of display technology, the signal transmission rate is getting higher and higher, and the signal transmission interfaces of various 3C electronic products have been constantly updated and replaced, especially the rapid popularization of Type-C interfaces on new devices, resulting in mismatch between new and old devices, and the demand for interface conversion is rapidly growing.
Under the catalysis of the above-mentioned comprehensive factors, signal conversion expansion products have ushered in a relatively strong market demand, and Xianying Technology (301067.SZ), which specializes in the research, development, production and sales of signal conversion expansion products, is also expected to start a new round of growth cycle.
It is reported that after years of industry deepening, the company relies on its excellent R&D strength, rapid response capabilities and stable production quality to provide global brand customers with the research and development and manufacturing of signal conversion expansion products. In order to further enhance the comprehensive competitive advantage, the company plans to invest the funds raised this time in the Type-C signal converter product expansion project and the high-speed high-definition multi-function expansion dock construction project, and the rest is used to supplement working capital.
Based on the company's industry, market conditions, valuation level of listed companies in the same industry, fundraising needs and underwriting risks, the company and the sponsor (lead underwriter) negotiated to determine that the issuance price is 47.58 yuan per share. Investors can use the Shenzhen Stock Exchange trading system on September 6, 2021 (T day) and use online market value subscription method.
In the past three years, the annual compound growth rate of net profit attributable to shareholders is 69.79%
has established a stable cooperative relationship with upstream suppliers and downstream customers
After years of industry deepening, Xianying Technology has formed a main business pattern with signal conversion and expansion products as the main product supplemented by molds and precision structural parts. During the reporting period, relying on its excellent R&D strength, rapid response ability and stable production quality, the company's performance showed a steady and positive development trend.
Specifically, from 2018 to 2020, the company achieved operating income of RMB 400.1805 million, RMB 421.0293 million, and RMB 530.5127 million, with an annual compound growth rate of 15.14%; and achieved net profit attributable to shareholders of RMB 23.0341 million, RMB 51.7513 million, and RMB 66.4066 million, respectively, with an annual compound growth rate of 69.79%. It can be seen that compared with the annual compound growth rate of revenue, the annual compound growth rate of the company's net profit attributable to shareholders is more considerable, which also highlights to a certain extent that under the premise of a certain revenue scale, the company's main products have relatively strong revenue-generating strength.
The steady improvement of the above performance is not unrelated to the company's strong competitive advantages in products and high customer stickiness.
It is understood that since the company launched its first Type-C signal converter product at the end of 2015, it has continued to innovate its products in multi-dimensional terms, and further launched the full-function Type-C multi-port signal expansion docking product in 2016. At present, the company's Type-C product series has comprehensive advantages such as strong integrity, process maturity, and product stability. Relying on the above advantages, it has established a long-term and stable cooperative relationship with many well-known brands in the industry, and has won wide recognition from customers.
development, in terms of customers, the prospectus shows that the company's current well-known brand customers include: Belkin, StarTech.com, Green Technology, Cropmark, SANWA SUPPLY, etc.; in the supplier field, the company has established partnerships with upstream chip manufacturers such as VIA, Synaptics and ITE to help them test and trial new chips. The company can obtain new chip supply earlier and carry out product research and development in advance, thereby gaining first-mover advantage.
R&D investment is steady and growth of core technologies, rich reserves
Realize multi-product coverage in the field of 3C peripheral products
Although signal conversion expansion products are more common 3C electronic peripheral products, it is relatively difficult to do a good job in refining a signal conversion expansion product.
According to public information, many problems encountered by consumers during use are manifestations of lack of product quality, such as: it requires multiple unplugs and plugs to use, slow transfer of large-capacity files, slow picture after being connected, picture quality declines after conversion, flashes, disappears, video picture and sound are out of sync, product heats up too high during use, signal interruption, etc.
In order to avoid the above problems and provide consumers with high standards and excellent products, Xianying Technology has always attached great importance to R&D work and continuously carried out product innovation since its establishment. According to the prospectus, during the reporting period, the company's R&D investment amounts were RMB 14.6806 million, RMB 18.3941 million and RMB 19.9619 million, respectively, maintaining a rapid growth momentum; at the same time, as of the end of December 2020, the company has obtained 121 authorized patents, including 4 invention patents and 63 utility models.
In addition to the continuous increase in R&D investment and related patent achievements, the company has also established a complete R&D management system, introduced an IPD integrated development system, and has a safety certification laboratory and an industrial-grade 3D printing laboratory. It has the technical development capabilities of various signal conversion expansion products, and can provide complete signal conversion expansion product solutions.
Specifically speaking of related core technologies, the company currently has rich relevant technology reserves and has formed 8 core technologies. Each core technology has applied for intellectual property protection, and the core technology rights are clear. At the same time, the company has several R&D projects in progress, such as: Thunderbolt 3 ultra-high-definition 8K signal expansion docking project, 40Gb/s bandwidth USB4 cable R&D project, wireless screen project, etc. In the next step, the company will rely on its existing high-quality customer resources, R&D and production advantages to develop other 3C peripheral products that customers are selling, and achieve multi-product coverage in the 3C peripheral product field.
In the future, the company will continue to improve its technical advantages and production advantages in the field of signal conversion expansion products, expand the production scale of Type-C signal conversion, and continue to increase R&D investment, and develop ultra-high-speed signal conversion expansion products that can support USB4, DP2.0 and HDMI2.1. At the same time, we will continue to integrate the industrial chain, promote the internal supply of metal molds and structural parts, and expand the external sales scale of the company's molds and precision structural parts to meet customers' high-value order needs.
Disclaimer: This article is for reference only and does not constitute investment advice.
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