Zhongtai Securities(SH:600918) Zheng Quan Ri Bao·2025-09-09 22:43Core Viewpoint - The report outlines the ongoing supervision of Hunan Xiangtou Jintian Titanium Industry Technology Co., Ltd. (hereinafter referred to as "Jintian Titanium") by its joint sponsors, Zhongtai Securities and AVIC Securities, during the company's initial public offering and listing on the Sci-Tech Innovation Board, confirming no major issues were found during the supervision period [1][2]. Group 1: Company Overview - Jintian Titanium specializes in the research, production, and sales of high-end titanium and titanium alloy materials, primarily used in high-end equipment fields such as aviation, aerospace, naval vessels, and weaponry [3]. - The company has established long-term and stable cooperative relationships with major clients, including state-owned enterprises and well-known listed companies in the defense sector [4][23]. Group 2: Risks - Core Competitiveness Risk: The company faces challenges in maintaining its competitive edge due to the complex and demanding nature of titanium alloy material production, which requires continuous R&D investment and technological innovation [3]. - Customer Concentration Risk: The company has a high customer concentration, with significant revenue derived from a few major clients. Changes in national defense policies or market demand could adversely affect its operations [4]. - Supplier Concentration Risk: The company relies heavily on a limited number of suppliers for key raw materials, which poses risks if these suppliers fail to deliver [5]. - Market Development Risk: The company must navigate the lengthy verification processes required to become a qualified supplier for high-end equipment, which could impact future sales if new products fail to pass these evaluations [7]. - Price Adjustment Risk: The pricing of high-end products is subject to regulatory frameworks and market conditions, which could affect profitability if prices decline [8]. Group 3: Financial Performance - As of June 30, 2025, the company reported a significant amount of accounts receivable, totaling 100,205.11 million yuan, which represents 33.24% of total assets, indicating potential cash flow challenges [10]. - The company's inventory value stood at 40,851.67 million yuan, accounting for 11.90% of total assets, which could lead to risks of inventory write-downs if market conditions change [11]. - The gross profit margins for 2024 and the first half of 2025 were 38.85% and 35.65%, respectively, reflecting some volatility influenced by product costs and sales structure [13]. Group 4: Competitive Advantages - The company has established a strong R&D and technical advantage, with a dedicated team and numerous patents, positioning it as a leader in high-end titanium alloy production [21]. - The company benefits from a market first-mover advantage, having secured long-term relationships with key clients through successful product evaluations [22]. - The company possesses comprehensive certifications and quality management systems, enhancing its credibility and ability to meet stringent industry standards [24]. - The management team is experienced and well-versed in the industry, contributing to the company's strategic development and operational efficiency [26]. Group 5: Fundraising and Compliance - As of June 30, 2025, the company has maintained compliance with regulations regarding the management and use of raised funds, with no reported violations [27].