Report Industry Investment Rating - No information provided Core Viewpoints of the Report - The report is optimistic about the prospects of Tai Rui Machine and Tai Rui Convertible Bonds, believing that the company has strategic advantages, overseas markets are in the harvest period, and the convertible bonds have certain investment value [5] Summary by Relevant Catalogs Information on Tai Rui Convertible Bonds - Tai Rui Convertible Bonds (113686.SH) are rated AA-. The bond balance is 336 million yuan, accounting for 99.59% of the total issuance. The remaining term is 4.58 years. The closing price on December 3rd was 142.32 yuan, with a conversion premium rate of 15.18% [1] Information on the Underlying Stock - Tai Rui Machine - Tai Rui Machine (603289.SH) is one of the major injection molding machine suppliers in China, mainly producing large and super - large customized injection molding machines. Its downstream industries are mainly automotive parts, household appliances, and 3C. From January to Q3 2025, its revenue was 868 million yuan, a year - on - year increase of 0.66%; the net profit attributable to the parent company was 66 million yuan, a year - on - year increase of 51.01%. The latest total market value is 2.954 billion yuan, with a PE TTM of 28.3x [3] Key Highlights of Tai Rui Convertible Bonds - Overseas business has become the core growth engine, and the global layout has entered the harvest period. In H1 2025, overseas revenue was 326 million yuan, accounting for 55.74% of the total revenue, and has been increasing since 2022. The gross profit margin of overseas business is significantly higher than that of the domestic market, becoming a key factor in profit growth. The company has established 6 overseas subsidiaries covering Europe, Asia, and the Americas, with a full - chain local operation system, and has successfully delivered high - end injection molding equipment to global top automotive parts suppliers and home appliance giant Electrolux [4] - Technological innovation builds high barriers. From January to Q3 2025, R & D expenses were 52.06 million yuan, accounting for 6.00% of revenue. In 2024, the company entered the aluminum alloy die - casting field. On November 19th, it disclosed a globally innovative integrated two - plate die - casting and ultra - high - pressure injection molding dual - process, achieving molecular - level combination of aluminum alloy and engineering plastics. Technological strength helps products achieve import substitution in high - end fields such as automotive, medical, 3C, and logistics [4] - A performance inflection point is looming, and the financial structure is sound. The headquarters building and smart factory in Hangzhou and the manufacturing base in Tongxiang were completed in June and July 2025 respectively. The company has a large number of pending orders. As production capacity ramps up, the company's profitability is expected to continue to improve. At the end of Q3 2025, the asset - liability ratio was 49.93% (compared to 52.25% at the end of 2024), and the monetary funds were 758 million yuan, with sufficient liquidity and a sound capital structure [5] - It is a newly - issued convertible bond, and the company has announced that it will not force redemption before January 15, 2026. The probability of continued non - forced redemption in the future is relatively high [5] Reasonable Valuation Deduction of Tai Rui Convertible Bonds - Based on the Shanxi Securities convertible bond valuation model, if the stock price remains unchanged and no forced redemption or downward revision is considered, the reasonable valuation of Tai Rui Convertible Bonds is between 148 and 162 yuan [6]