Union Precision(SH:688210) Soochow Securities·2026-03-02 09:36Report Industry Investment Rating - Not provided in the content Core Viewpoints of the Report - The expected listing price of Tonglian Convertible Bond on the first day is between 139.70 and 155.09 yuan, and the expected winning rate is 0.0023%. It is recommended to actively subscribe [1]. - Tonglian Precision is a company engaged in R & D, design, production, and sales of precision components. Since 2020, its revenue has steadily increased with a compound growth rate of 24.73% from 2020 - 2024, and its net profit attributable to the parent has also fluctuated, with a compound growth rate of 2.09% during the same period [1]. Summary According to Relevant Catalogs 1. Convertible Bond Basic Information - Tonglian Convertible Bond (118066.SH) started online subscription on March 2, 2026, with a total issuance scale of 576 million yuan. After deducting issuance fees, the net proceeds will be used for the new intelligent small - home appliance manufacturing base (Phase II) project of Guangdong Xiaoxiong Fine Appliance Co., Ltd [1]. - The current bond floor valuation is 92.03 yuan, and the YTM is 2.19%. The convertible bond has a 6 - year term, with a credit rating of AA -/AA - by United Credit Rating Co., Ltd. The face value is 100 yuan, and the coupon rates from the first to the sixth year are 0.20%, 0.40%, 0.60%, 1.00%, 1.50%, and 2.00% respectively. The company's redemption price at maturity is 110% of the face value (including the last - period interest) [1][11]. - The current conversion parity is 109.1 yuan, and the parity premium rate is - 8.35%. The conversion period is from the first trading day after 6 months from the end of issuance to the maturity date of the convertible bond, i.e., from September 7, 2026, to March 1, 2032. The initial conversion price is 56.2 yuan/share, and the closing price of the underlying stock, Tonglian Precision, on February 26 was 61.32 yuan [1][11]. - The convertible bond terms are standard. The downward - revision clause is "15/30, 85%", the conditional redemption clause is "15/30, 130%", and the conditional put - back clause is "30, 70%". The dilution rate of the total share capital is 5.96%, and the pressure on share capital dilution is small [1]. 2. Investment Subscription Suggestion - The expected listing price of Tonglian Convertible Bond on the first day is between 139.70 and 155.09 yuan. Based on comparable targets and empirical results, considering the good bond - floor protection, average attractiveness of the rating and scale, the expected conversion premium rate on the first listing day is about 35% [1][14]. - The expected priority subscription ratio of original shareholders is 64.03%. The expected winning rate is 0.0023%, and it is recommended to actively subscribe [1][15]. 3. Underlying Stock Fundamental Analysis 3.1. Financial Data Analysis - Tonglian Precision is engaged in the R & D, design, production, and sales of precision components. It has diverse manufacturing capabilities and is actively making technological reserves and capacity layouts in new materials and technologies. Its products are mainly customized and can be widely used in various fields [17]. - Since 2020, the company's revenue has steadily increased, with a compound growth rate of 24.73% from 2020 - 2024. In 2024, the revenue was 814 million yuan, a year - on - year increase of 44.93%. The net profit attributable to the parent has also fluctuated, with a compound growth rate of 2.09% from 2020 - 2024. In 2024, it was 75 million yuan, a year - on - year increase of 26.99% [1][18]. - The company's revenue mainly comes from the precision component business, and the product structure changes annually. From 2022 - 2024, the sales revenue of precision components accounted for 97.83%, 97.72%, and 95.62% of the main business revenue, respectively [23]. - The company's sales net profit margin and gross profit margin have slowly declined, the sales expense ratio has fluctuated steadily, the financial expense ratio has fluctuated significantly, and the management expense ratio has fluctuated steadily. The sales gross profit margin and sales net profit margin are higher than the industry average [26]. 3.2. Company Highlights - Tonglian Precision's products are mainly customized and are mainly used in the new consumer electronics field. It has established good cooperative relationships with well - known brands and won a good reputation in the industry [33].