A: Basic Information of the Company
Company Full Name: Changzhou Wujin Zhongrui Electronic Technology Co., Ltd.
Stock Code: 301587
Stock Abbreviation: Zhongrui Shares
Region: Changzhou, Jiangsu Province
Industry: Special Purpose Equipment Manufacturing
Establishment Date: March 2, 2001
Issue Price: 21.73 CNY/share
Founder: Yang Xuxin
Company Website: http://www.zhongrui-tech.com
Registered Address: No. 158, Dongdu East Road, Luoyang Town, Wujin District, Changzhou, Jiangsu Province
Total Share Capital: 147 million shares
Market Capitalization: 26.73 billion CNY (as of September 30, 2024)
Business Scope: R&D, manufacturing, and sales of precision safety components for cylindrical lithium batteries, mainly including power-type and capacity-type lithium battery combination caps.
Company Profile: Zhongrui Shares is a high-tech enterprise focusing on the R&D, manufacturing, and sales of precision safety components for cylindrical lithium batteries. The company's products are widely used in new energy vehicles such as Tesla Model 3 and Model Y, electric bicycles from brands like Xiaoniu, Hello, and Yadea, electric tools from brands like Dyson, TTI, and Bosch, as well as digital 3C products. The company has established cooperative relationships with leading lithium battery manufacturers and sellers such as LG New Energy, Nengyuan Technology, Bik Battery, and Lishen Battery.
B: Value Investment Analysis
Key Financial Indicators:
Revenue: 3.62 billion CNY for the period of January-June 2024.
Net Profit: 756.58 million CNY for the period of January-June 2024.
Market Capitalization: 26.73 billion CNY (as of September 30, 2024).
PE (TTM): 34.83, Price-to-Book Ratio: 2.73.
Company Investment Value:
Zhongrui Shares, as a leading enterprise in the field of cylindrical lithium battery precision structure parts in China, demonstrates a high investment value with its technological accumulation and breakthroughs in the development and processing of lithium battery combination caps. The company has established stable cooperative relationships with well-known enterprises such as LG New Energy, and its products are applied in well-known new energy vehicles like Tesla, showing its market competitiveness and brand influence.
Company Growth Potential:
The growth potential of Zhongrui Shares is mainly reflected in the following aspects:
Technological Innovation: The company has a deep technical accumulation in the field of lithium battery precision structure parts, continuously launching new products to meet market demands.
Market Demand: With the rapid development of the new energy vehicle and electric tool industries, the demand for high-performance lithium batteries is growing, providing a broad market space for the company.
International Cooperation: The company's cooperation with internationally renowned enterprises helps to improve the company's technical level and market competitiveness, enhancing the company's global influence.
Industry Support Policies:
National support policies for high-tech enterprises and specialized, refined, and innovative enterprises, as well as support for strategic emerging industries such as medical devices, provide a favorable external environment for Zhongrui Shares. Moreover, with the development of the new energy vehicle industry, it will further promote the growth of the lithium battery structure parts industry, bringing more development opportunities for the company.
International Policy Risks:
Zhongrui Shares may face risks such as changes in trade policies and exchange rate fluctuations in the process of internationalization. The company needs to closely monitor international market dynamics and flexibly adjust market strategies to cope with potential policy risks.
A.Top's Investment Review:
Zhongrui Shares, as a leading enterprise in the field of cylindrical lithium battery precision structure parts in China, shows strong investment value and growth potential due to its technological strength, market prospects, and international cooperation. However, the company may also face certain policy risks in the process of internationalization. Investors should comprehensively consider the company's technical capabilities, market prospects, and potential risks when considering investing in Zhongrui Shares, and make rational investment decisions.