1. Domestic precision parts experts, business covers casting machining
(1) Domestic leading precision parts experts
Founded in 1995, Pintejin group is mainly engaged in the research and development, design, production and sales of high-precision mechanical parts and precision cavity mold products, providing one-stop services from casting to finishing. The company's products include precision parts for compressors, construction machinery, energy equipment and food machinery manufacturing. Specifically, the company's compressor parts products include compressor rotor seats, motor seats, suction seats, exhaust seats, slide valves, oil grooves and volutes, rotor support components, diffuser plates, nozzle plates, etc. Components include box assembly, transmission cover, body assembly, transmission box assembly, clutch housing, gear cover, transmission accessories, etc., injection molding machine parts include static plate, moving plate, oil cylinder, frame, motor base, feeding pipe, Bottom cover, etc. Food machinery parts include frame, main body, crosshead, connecting rod assembly, power frame, front frame, gear cover, bearing cover, etc.
The company's customers are all industry leaders. At present, the company has established a solid strategic partnership with the world's top equipment manufacturers Feiyue Laser, Huawei, Stanford, Mairui, the world's largest construction machinery manufacturer Sanyi and other well-known global top 500 companies, the products continue to be highly recognized by major customers.
Since its establishment, the company has expanded its business and expanded its production capacity through acquisitions and the establishment of subsidiaries for many times. In June 2019, the company established a subsidiary, BE-CU china rapid prototyping company, which is mainly engaged in the trading business related to customized machinery and parts. BE-CU.COM was established in September 2020, mainly engaged in the machining of high-precision mechanical parts, and it was wholly acquired in November 2016. Be-cu china die casting was established in April 2021, mainly engaged in the casting of high-precision mechanical parts, and then wholly acquired in February 2022. Be-cu is mainly responsible for the production of high-precision mechanical parts castings in Europe and the United States. After that, the company has successively set up a Japanese docking department. In January 2022, the company will integrate the powder coating supply chain, which will effectively expand the casting and machining capacity.
The company's shareholding structure is concentrated. The company is privately owned. The actual controller of the company is Zhou Hanping, and the shareholding structure is concentrated. The company has 5 wholly-owned subsidiaries: PTJ Hardware, Pintejin Laser Cutting Factory, Pintejin Casting, BE-CU prototype company, PTJ metal forging china company.
The parent and subsidiary companies perform their respective duties and cooperate well. The production of the company's precision parts is mainly through forging, machining volume and other links. The subsidiary Pintejin Casting is mainly responsible for the casting process. The parent company Pintejin group and the subsidiary BE-CU prototype company are mainly responsible for the machining process. The global layout of the company's business.
(2) Relatively stable income in recent years and excellent financial indicators
The company's revenue has grown steadily and the gross profit margin has been relatively high. The company's revenue and net profit are relatively stable. In 2021Q1-3, the company achieved revenue of 588 million yuan, a year-on-year increase of 25.33%, and realized a net profit attributable to the parent of 128 million yuan, a year-on-year increase of 9.59%. The company's gross profit margin is relatively high, maintaining an average of more than 40%. In 2021Q1-3, the company's gross profit margin was 36.38% and net profit margin was 21.76%, down 5.55pct and 3.12pct year-on-year respectively, mainly due to the increase in raw material prices.
Compressor parts are the company's main source of income, and the proportion of construction machinery parts has increased in recent years. The company's products mainly include compressors, construction machinery, food machinery, and energy equipment parts. Among them, compressor parts account for the highest proportion of revenue. In 2021H1, the company's compressor parts revenue is 283 million yuan, accounting for 77.75% of operating income. Construction machinery The revenue of parts and components was 61 million yuan, accounting for 16.76% of the operating income, and this proportion increased by 2.01pct compared with 2020. In addition, the proportion of food machinery and energy equipment parts is relatively low. In 2021H1, the revenue of the two will be 0.09 billion and 0.05 billion yuan, accounting for 2.47% and 1.37% of the operating income, respectively. Among various products, food machinery parts have the highest gross profit margin. In 2021H1, the company's compressor parts, construction machinery parts, food machinery parts, and energy equipment parts have gross profit margins of 38.77%/30.07%/49.83%/43.22%, respectively.
Both domestic and foreign business are emphasized, and the domestic gross profit margin is higher than that of foreign countries. The company adheres to the development of domestic and foreign routes, and the proportion of domestic and foreign income is relatively stable. In 2020, the company's domestic and foreign revenue were 421/249 million yuan, accounting for 62.84%/37.16% of the current revenue, respectively. Compared with the domestic business, the company's foreign business has a lower gross profit margin. In 2020, the domestic and foreign business gross profit margins are 46.53% and 37.60% respectively. The difference in gross profit margin at home and abroad is mainly caused by factors such as product structure and scale effect. For example, the company's important base in the Americas, AMR, sells mainly construction machinery parts, and the proportion of sales in each period is basically more than 80%, while domestic sales of products are Compressor parts are the main components, and the sales in each period account for about 85%. Since AMR only started production in 2016, the amortization of initial fixed costs is relatively high. With the increase in revenue and the gradual realization of the scale effect, the gross profit margin is expected to increase steadily.
Under economies of scale, the period expense rate continued to decline. The industry in which the company operates has relatively significant economies of scale. In recent years, with the continuous increase of the company's scale, the company's period expense ratio has continued to improve. In 2021H1, the company's sales expense ratio, management expense ratio, and financial expense ratio were 1.04%, 6.42%, and -0.51%, respectively, down 3.72/5.97/1.32pct from the highest point in 2017. The company focuses on R&D investment, and the R&D expense ratio has increased this year. In 2021H1, the company's R&D expense ratio is 6.62%, an increase of 1.75pct compared to 2017.
2. High-end precision parts are the foundation of high-end manufacturing, fully benefiting from the development of downstream industries and the rise of China's manufacturing industry
(1) Manufacturing of high-end mechanical parts
The manufacturing of machinery and equipment parts is one of the most important basic links in the machinery manufacturing industry. The product categories of machinery and equipment parts are diverse and their functions are important. The quality and technical level of the equipment often determines the performance, quality and reliability of the equipment host products. Therefore, the machinery and equipment parts manufacturing industry, as the basic industry of the equipment manufacturing industry, is a large number of host products and high-end technology. The basic guarantee of equipment innovation and development plays an indispensable role in the development of the national economy, and has become one of the basic driving forces for improving the overall level of a country's equipment manufacturing industry. From the production process point of view, raw materials need to be formed through casting, forging, welding, stamping and other links to form blank parts, and then through processing, assembly and other links to form parts, and parts are assembled to form various types of complete machines.
Casting is one of the most common processes in the blank forming of mechanical parts, and production capacity is gradually shifting to my country, which is already the world's largest producer of castings. The casting process has low cost and high process flexibility, and can obtain complex shapes and large-scale castings. The product has good comprehensive performance and has certain comparative advantages over other forming processes such as forging, rolling, welding, and punching. It is the main process of metal forming at present. methods and means. In recent years, with the reconstruction of the global industrial chain, emerging economies have undertaken international industrial transfer, and the foundry industry in emerging economies such as China, India, Russia, and Brazil has developed rapidly. my country has now become the world's largest casting producer. According to Wind, china die casting output in 2020 will be 51.95 million tons, accounting for 49.24% of the world's total casting output.
Machining is a key link that affects the accuracy and reliability of parts and components. The blank of mechanical equipment parts needs to be further machined by machine tools and other equipment, so that the parts can meet the needs of host production in terms of performance and accuracy. The higher the technological level of machining, the higher the precision and quality stability of the parts produced, thereby effectively improving the safety, reliability and stability of mechanical equipment.
There are many downstream industries of machinery and equipment parts. There are many downstream fields of machinery and equipment parts, including compressors, construction machinery, tires, national defense and military industries, air conditioners, and automobiles. From the perspective of comparable companies in the same industry, the company's main downstream application fields are compressors, construction machinery, energy equipment, food machinery, etc., while Liancheng Precision's main application fields are passenger cars, commercial vehicles, diesel engines, construction machinery, commercial compressors , hydraulic machinery, environmental protection water treatment, etc. The main application fields of Himile Technology are tire manufacturing, large-scale castings for wind power and gas turbines, and the main application fields of Yingliu Co., Ltd. are aerospace, nuclear power, oil and gas, resources and special equipment such as defense agents. Huaxiang Co., Ltd. The main application areas are air conditioners, refrigerators, automobiles, etc.
Under the demand of high-end customization, there are higher requirements for the research and development and process design of enterprises. In response to high-end demand, leading enterprises in the industry have begun to implement innovative business models of specialized customization. Customers only need to provide product drawings, standard specifications and delivery time requirements, and the rest are highly professional process design, tooling production, manufacturing, The whole process of quality inspection is completed by the parts manufacturer, and the traceability records required by the standard specifications are provided; at the same time, the R&D personnel of the parts manufacturer also participate in the customer's product design and provide professional technology and expert opinions. In this mode, not only the technological level of the parts manufacturing enterprises is inspected, but also the R&D level of the enterprises has high requirements. However, at present, my country's mechanical equipment parts products are still mainly low-end basic products, high-end parts and components products account for a relatively low proportion, the phenomenon of homogeneity is relatively common, and the research and development cycle is long and the contribution rate of new products is low. At the middle and low end of the industrial chain and value chain, some key components for special and high-end products, such as bearings, electronic components, high-speed rail gearboxes, robot gearboxes, etc., also rely on imports. Excellent casting companies represented by Liuzhou Co., Ltd., Himile Technology, etc. have moved towards the high-end direction.
The customer structure is greatly affected by the downstream concentration, but in general, the proportion of large customers is relatively high. The client concentration of Pintejin Group is relatively high. Among them, the top five customers of BE-CU.com account for the lowest revenue, mainly because its downstream are tire manufacturing enterprises, wind power, gas turbine and other enterprises, and the industry is relatively fragmented with a large number of enterprises, and the market is fragmented. The main downstream of the company are compressors and construction machinery, and the industry concentration is relatively high. Affected by this, the revenue of the company's top five customers is higher than that of comparable companies in the same industry. In addition, the number of downstream application areas will also affect the customer concentration of industry companies. As mentioned above, Liancheng Precision, Yingliu and Huaxiang have many downstream fields, which also reducestheir customer concentration. The company's compressor parts revenue accounts for more than 70%, and the downstream areas are relatively concentrated, which also leads to a high degree of customer concentration of the company.
(3) Construction machinery: the recovery of overseas markets is accelerating, and export demand may grow further
The construction machinery market is highly concentrated. Construction machinery includes excavators, cranes, road rollers, concrete machinery, etc. The construction machinery industry has high investment and high market concentration. The main players include Caterpillar, Komatsu, XCMG, Sany, and Zoomlion. According to YellowTable, the total market share of the top ten companies in the construction machinery industry in 2021 will be 65.3%, and the market shares of Caterpillar, Komatsu, XCMG, Sany, and Zoomlion will be 13.0%, 10.4%, 7.9%, and 7.5% respectively. , 4.9%.
The global economy has entered a recovery channel, and the global sales growth of construction machinery has gradually recovered. According to the financial report of the global construction machinery leader Caterpillar, its Asia-Pacific business has resumed positive growth since Q3 in 2020. Since Q1 2021, as the global economy gradually recovers from the epidemic, its global business has begun to grow, especially in Europe and the United States and other regions. The recovery is relatively fast, and its global market sales in 2021Q4 increased by 27% year-on-year.
In the short term, export demand may become the main driving force for the growth of the construction machinery market. With the recovery of the global construction machinery market, my country's export demand for excavators will gradually expand. According to the China Construction Machinery Industry Association, from April 2020, the export volume of my country's excavators began to bottom out, and the export growth rate continued to accelerate. In 2021, my country will export a total of 68,427 excavators, an increase of 96.96% compared with 2020.
(4) Wind power castings: Benefit from the development of the global wind power market under the trend of carbon neutrality
With the rapid development of the global wind power industry, my country has become the largest wind power market. According to the Global Wind Energy Organization Association GWEC (the same below), the global installed capacity of onshore wind power will be 72.5GW in 2021, and the new installed capacity of offshore wind power will be 21.1GW, an increase of 82.16% and 2244.44% respectively compared with 2011, and the compound growth rate of 2011-2021 The rates were 6.18% and 37.09%, respectively. At the same time, my country has become the world's largest wind power market. In 2021, my country's newly installed capacity of onshore wind power and offshore wind power will be 30.7GW and 16.9GW respectively, accounting for 42.30% and 80.09% of the world's newly installed capacity, respectively.
The company vigorously entered the market of large-scale castings for wind power. In recent years, the global wind power industry has developed rapidly, but the company can only produce and sell a small amount of sealing parts for large-scale wind power equipment. According to the company's prospectus, the company initially planned to invest 229 million yuan in the construction of a "technical transformation project with an annual output of 65,000 sets of high-precision mechanical parts". After transportation expenses and other factors, the company decided to change the original project and invest 596 million yuan to build the "high-precision mechanical parts production and construction project". The revised new fundraising project will be built into a complete industrial chain base of "casting + cnc machining china", and will meet the production of large-scale wind power supporting parts. The newly raised investment projects can not only meet the increased demand for the company's existing products, but also fully meet the needs of large-scale production of new products.
About The Company:
As a China cnc machining company, Pintejin Group is internationally known for its dedication to the development of quality prototypes at an affordable cost for businesses all across the world. This company began operations in 1995 and has since expanded to a second facility in China to handle the growing number of project orders. For precision machining services in China, they have built a solid reputation for themselves.
Tel: +86 (0)769-8288 6112
Fax: +86 (0)769-8288 6112
Factory Address: Sifangyuan Industrial Park, Xinshapu, Huaide Community, Humen town, Dongguan City, Guangdong Province.
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