GATD(SH:688239) Huajin Securities·2024-08-20 14:23Investment Rating - The report assigns an investment rating of AA-/AA- to the company and its convertible bond issuance [7][8]. Core Insights - The company is a leading manufacturer of aerospace engine ring forgings, with a focus on high-tech products used in aviation and aerospace applications [11][14]. - The issuance of the convertible bond amounts to 667 million yuan, with a conversion price set at 32.64 yuan and a maturity period of 6 years [7][8]. - The company has experienced a significant stock price decline of 37.92% year-to-date, underperforming the industry index which decreased by 11.05% [27]. Summary by Sections Convertible Bond Analysis - The bond issuance size is 667 million yuan, with a conversion price of 32.64 yuan and a maturity of 6 years. The bond has a high compensation rate of 10% and market-oriented adjustment clauses [7][8]. - The pure bond value is calculated at 94.61 yuan, with a yield to maturity (YTM) of 3.12%, indicating sufficient debt protection [7][8]. Stock Analysis - The company is primarily engaged in the research, production, and sales of aerospace engine ring forgings, with a significant portion of its revenue derived from domestic sales [11][14]. - The top ten shareholders hold a combined 42.38% of the shares, indicating a concentrated ownership structure [10]. Financial Analysis - In Q1 2024, the company reported revenues of 578 million yuan, a year-on-year increase of 3.21%, and a net profit of 56 million yuan, up 10.36% from the previous year [20][21]. - The company's current ratio is 1.92, and the debt-to-asset ratio stands at 49.03%, reflecting a stable short-term solvency position [22][27]. Valuation Performance - As of August 19, 2024, the company's price-to-earnings (P/E) ratio is 22.85, higher than the industry average, indicating a high valuation elasticity [27]. - The company’s stock has a significant dilution risk due to the upcoming release of restricted shares on September 18, 2024 [27]. Fundraising Project Analysis - The funds raised will be allocated to the construction of a precision manufacturing park for large ring forgings and to supplement working capital, with expected returns and payback periods outlined [30].