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Greenlink Technology subscription analysis

Greenlink Technology subscription analysis

1. Introduction to the company's business

Greenlink Technology (301606) is a world-renowned consumer electronics brand enterprise, mainly engaged in the research and development, design, production and sales of 3C consumer electronic products, committed to providing users with a full range of digital solutions, products mainly cover transmission, audio and video, charging, mobile peripherals, storage five series.

On the basis of independent product research and development, the company adopts the production mode of outsourcing finished product procurement, supplemented by independent production, which enables the company to focus on product technology research and development, product innovation and brand management, and cooperate with excellent outsourcing factories to provide users with high-quality products with market competitiveness, and enhance user product experience and brand value experience.

Relying on the "UGREEN" brand to lay out domestic and foreign markets, the company adopts a combination of online and offline models to achieve sales in China, United States, United Kingdom, Germany, Japan and other countries and regions around the world, and has become one of the leading brands in the field of technology consumer electronics. The company has strategically laid out online sales platforms, and has achieved the coverage of mainstream e-commerce platforms at home and abroad, such as Tmall, JD.com, Amazon, AliExpress, Shopee, Lazada, etc., and the company's main brand products are ranked leading in the list of mainstream platforms. In addition, the company actively lays out offline sales channels, and its domestic distribution network covers major provincial-level administrative regions across the country, and the brand's offline influence continues to increase.

The company's representative product forms and diagrams are as follows:

1) Transmission class

Greenlink Technology subscription analysis

2) Audio and video

Greenlink Technology subscription analysis

3) Charging class

Greenlink Technology subscription analysis

4) Move the peripherals

Greenlink Technology subscription analysis

5) Storage class

Greenlink Technology subscription analysis

From 2021 to 2023, the composition of the company's main business income is as follows:

Greenlink Technology subscription analysis

2. The company's performance

From 2019 to 2023, the company's growth and profitability performance are as follows:

Greenlink Technology subscription analysis

From January to June 2024, the company expects operating income of about 2.656 billion yuan to 2.771 billion yuan, an increase of 25.19% to 30.62% year-on-year, net profit of about 200.1 million yuan to 210.2 million yuan, an increase of 6.16% to 11.50% year-on-year, and non-net profit of about 191.7 million yuan to 201.8 million yuan, an increase of 8.54% to 14.24% year-on-year.

3. Issuance and comparison with comparable companies

The company's issue price is 21.21 yuan, 41.5 million shares are issued, and the lead underwriter: Huatai United Securities, with a market value of 8.802 billion yuan after issuance. Based on the median 2024 semi-annual report, the dynamic P/E ratio is 21.45 and the static P/E ratio is 22.71. The market capitalization, price-to-earnings ratio and revenue of comparable companies are as follows:

Greenlink Technology subscription analysis

4. Summary

The company is a consumer electronics brand, and its products are mainly sold through online e-commerce platforms, and from 2021 to 2023, this part of the revenue accounts for 78.14%, 75.98% and 74.77% of the company's main business income, respectively. Although the company's products can reach as many consumers as possible through e-commerce platforms, e-commerce platforms often have a strong voice. In the future, if the e-commerce platform changes its operation and sales policies and the company cannot adjust it in time, it will have an adverse impact on the company.

In addition, nearly half of the company's revenue came from overseas during the reporting period, and in view of the political and economic environment and business environment of different countries and regions, as well as the rising trend of international trade protectionism in recent years, the company's overseas development may face a more complex situation.

The company's financial performance is still good, although the net profit margin level is not very high, but due to the good turnover rate, the company's return on equity remains at a high level. Among comparable companies, Anker Innovations is more comparable with the issuer; Anker Innovations has been recognized by the market since its listing, and it remains to be seen whether the issuer can withstand the test of the market after listing. The company's valuation is okay, and the issue market value of 8.8 billion looks large, but the risk is not great.

New rating: positive. I hit the new plan: participate.

Notes: The performance of IPO on the first day is related to many factors, and this article is only a brief analysis of the company's business, main financial indicators and valuation. Investors need to think independently and make decisions when making new deals. If there is a conclusive statement in the article, it is also a personal opinion. We hope that investors will invest rationally.

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