Shenzhen Honor Electronic (300870) 民生证券·2024-07-04 08:22Investment Rating - The report gives a positive recommendation for participation in the new bond subscription, suggesting a listing price of around 120 yuan with a 30% premium on the first day of trading [17][38]. Core Insights - The company, Shenzhen Oulutong Electronics Co., Ltd., is a leading domestic manufacturer in the server power supply sector, with a focus on research and development, production, and sales of switching power supply products [84][43]. - The company has shown significant revenue growth, with a 34.06% year-on-year increase in Q1 2024, reaching 696 million yuan, and a remarkable 1703.04% increase in net profit [29][79]. - The company operates in a favorable market environment, benefiting from the growth of the cloud computing industry and the increasing demand for data center power supplies [90]. Summary by Sections 1. Convertible Bond Basic Terms - The convertible bond has an issuance scale of 645 million yuan, with a bond and issuer rating of AA-/AA-; the conversion price is set at 44.86 yuan, and as of July 2, 2024, the conversion value is 92.47 yuan [38][39]. - The bond has a maturity of 6 years, with an average annual coupon rate of 0.92 yuan and a maturity compensation rate of 12%, indicating a relatively high level for newly issued convertible bonds [38][39]. 2. Subscription Value Analysis - The company operates in the other power supply equipment sector, with a current PE (TTM) of 19 times, which is below the average of comparable companies [41][87]. - The company’s stock has decreased by 5.58% year-to-date, while the industry index has dropped by 16.98%, indicating better relative performance [41][29]. 3. Company Operating Performance - In Q1 2024, the company achieved a revenue of 696 million yuan, a 34.06% increase year-on-year, with a gross profit margin of 19.88% [29][60]. - The company has maintained a low equity pledge ratio of 12.06%, indicating lower equity pledge risk [41]. 4. Competitive Advantages - The company has developed a series of server power supply products and has established a stable customer base, including well-known domestic and international clients [43][63]. - The company has accumulated 166 patents and emphasizes quality control and technological innovation in its operations [86][43]. 5. Industry and Market Analysis - The switching power supply market in China is projected to grow significantly, with a compound annual growth rate (CAGR) of 8.08-8.13% expected until 2025 [22][49]. - The global server market is anticipated to grow at a CAGR of 9.3% from 2023 to 2030, which will drive demand for server power supplies [49][90].