Yonggui(SZ:300351) Minsheng Securities·2025-03-13 00:23Investment Rating - The report gives a positive recommendation for the investment in Yonggui Convertible Bonds, suggesting active participation in the new bond subscription with an expected listing price of around 126 yuan, reflecting a 25% premium on the first day of trading [3][13]. Core Viewpoints - Yonggui Electric is positioned as a leading domestic player in the rail transit connector sector, with a strong emphasis on technology research and development, customer resources, and manufacturing capabilities [5][47]. - The company has shown significant revenue growth, with a 35.56% year-on-year increase in revenue for the first three quarters of 2024, reaching 1.371 billion yuan [4][39]. - The convertible bond has a high pure bond value and a substantial debt protection level, making it an attractive investment opportunity [10][13]. Summary by Sections Convertible Bond Basic Situation Analysis - Yonggui Convertible Bonds have an issuance scale of 980 million yuan, rated AA-/AA- with a conversion price of 18.29 yuan. As of March 10, 2025, the conversion value is 101.09 yuan, and the bond has a maturity of 6 years with an average annual coupon of 1.18 yuan [10][11]. Subscription Value Analysis - The company operates in the rail transit equipment sector, with a current PE (TTM) of 64 times, which is above the median of 36 times among comparable companies. The market capitalization stands at 7.172 billion yuan [3][13]. Company Operating Situation Analysis - For the first three quarters of 2024, the company achieved revenue of 1.371 billion yuan, a 35.56% increase year-on-year, with a net profit of 101 million yuan, reflecting an 11.80% increase [4][39]. Competitive Advantage Analysis - Yonggui Electric has established itself as a leader in the rail transit connector niche, with advantages in technology development, customer resources, manufacturing capabilities, and rapid response to customer needs [5][47]. The company has a strong customer base, including major domestic rail and automotive brands [47][48]. Industry Overview - The connector industry is experiencing steady growth, with the global connector market expected to reach 81.9 billion USD by 2023, driven by applications in automotive, communication, and industrial sectors [20][31]. The domestic connector market is projected to grow to 185.1 billion yuan in 2024 [21][26].