Company Overview - Company name is Jiaoda Tiefa, focusing on the research, development, production, and sales of intelligent products and equipment for rail transit, as well as providing professional technical services in this field [1][2] - Established in 2005 by Southwest Jiaotong University, the company is closely tied to its parent institution, which holds a 17.19% stake [1][2] - The company has participated in significant national and provincial research projects, including the development of a high-speed railway earthquake early warning system [1][2] Market Position - Jiaoda Tiefa's products are widely used in major rail projects such as the Beijing-Zhangjiakou High-Speed Railway and the Guangzhou Metro, with key clients including the China National Railway Group [2][3] - The company has a market share of approximately 40% in the earthquake warning system sector and over 90% in the switch monitoring system sector [2][3] Industry Context - The rail transit equipment industry is expected to grow rapidly, with China's railway operating mileage projected to increase from 146,000 kilometers in 2020 to 165,000 kilometers by 2025 [3] - Urban rail transit is also anticipated to expand significantly, with 59 cities operating urban rail systems and a total operational length of 11,224.54 kilometers as of the end of 2023 [3] Financial Performance - Projected revenues for 2022, 2023, and 2024 are 235 million, 273 million, and 335 million yuan respectively, with year-on-year growth rates of 15.26%, 16.12%, and 22.61% [4] - The company expects to raise 193.4 million yuan through its IPO, with funds allocated for three projects and working capital [4] IPO and Valuation - The IPO has generated significant interest, with subscription funds exceeding 5 billion yuan, setting a record for the North Exchange [5][6] - The dynamic price-to-earnings ratio for Jiaoda Tiefa is 12.26, significantly lower than the average of comparable companies at 30.86, indicating a strong valuation advantage [6][7] - If the stock reaches the average valuation of comparable companies, it could see an increase of 152% on its first trading day, with a potential price target of 22 yuan [7]

Investment Rating - The report suggests a "Buy" rating for the company, indicating a positive outlook for investment opportunities in the near future [2][5]. Core Insights - The company, Jiao Da Tie Fa, is recognized as a national-level "Little Giant" in the field of rail transit infrastructure safety and intelligent products, with a focus on technological innovation and industry upgrades supported by the National Railway Group [2][11]. - The company plans to raise funds through an initial public offering (IPO) to invest in new production projects, a research center, and marketing networks, which are expected to significantly increase revenue and profit [8][9]. - The rail transit infrastructure market is experiencing substantial growth, with national fixed asset investment in railways reaching 850.6 billion yuan in 2024, a year-on-year increase of 11.3% [33][37]. Summary by Sections 1. Initial Issuance - The company is issuing 19.09 million shares at a price of 8.81 yuan per share, with an initial price-to-earnings (P/E) ratio of 12.6X [2][5]. - The total number of shares after issuance will be 76.34 million, with the issuance accounting for 25.01% of the total shares before any over-allotment [5][6]. 2. Fundraising and Investment Projects - The funds raised will be allocated to projects including the construction of a new production facility for rail transit intelligent products, a research center, and a marketing and after-sales service network [8][9]. - The new production project is expected to generate an additional annual revenue of approximately 247.15 million yuan and a net profit of about 30.10 million yuan upon reaching full capacity [9][10]. 3. Company Overview - Founded in 2005, the company specializes in rail transit safety products and has established partnerships with several universities and research institutions [11]. - The company has participated in significant national railway projects, including the Beijing-Zhangjiakou High-Speed Railway and the Jakarta-Bandung High-Speed Railway [11]. 4. Financial Performance - From 2020 to 2024, the company's revenue is projected to grow from 154 million yuan to 335 million yuan, with a compound annual growth rate (CAGR) of 21% [27]. - The net profit is expected to increase from 19.85 million yuan to 53.39 million yuan during the same period, with a CAGR of 28% [27][32]. 5. Market Potential - The report highlights the strategic importance of railway construction and information technology in promoting economic development, with significant investments planned for the coming years [33][34]. - The company is well-positioned to benefit from the growing demand for rail transit infrastructure, supported by government policies and increasing urbanization [33][38].

Investment Rating - The report assigns a positive investment rating to the company, highlighting its strong growth potential in the rail transit safety monitoring and service sector [1]. Core Viewpoints - The company, Jiao Da Tie Fa, is recognized as a "small giant" in the rail transit safety service field, demonstrating high profitability and stable growth, with industry-leading profit quality [1]. - The rail transit industry is supported by national policies and is experiencing rapid growth, with significant investments expected to continue [2]. - The company has shown remarkable achievements in technological innovation and has a strong research and development capability, which is expected to enhance its market competitiveness [3]. Summary by Sections Company Overview - Jiao Da Tie Fa specializes in the research, development, production, and sales of intelligent products and equipment for rail transit, providing professional technical services [11]. - The company has a diverse product range, including safety monitoring products, railway information systems, new materials, intelligent equipment, surveying services, and operation and maintenance services [17][21]. Financial Performance - The company's operating revenue has shown a consistent upward trend from 2022 to 2024, with revenues of 230.41 million, 269.09 million, and 331.03 million yuan respectively [69]. - The gross profit margins for the years 2022, 2023, and 2024 were 45.76%, 46.57%, and 44.50%, indicating stable profitability [1][69]. Industry Context - The rail transit industry is a strategic emerging industry supported by the government, with significant growth in railway operating mileage projected from 146,000 kilometers in 2020 to 165,000 kilometers by 2025 [2]. - The market size of China's rail transit operation and maintenance industry has grown from 91.4 billion yuan in 2017 to 191.68 billion yuan in 2022, with a compound annual growth rate of 15.96% [2]. Investment Highlights - The company is recognized as a national-level specialized and innovative "small giant" enterprise, with a strong focus on technological innovation and a robust R&D framework [3]. - The company has participated in numerous research projects and has a significant number of patents and software copyrights, enhancing its competitive edge in the market [3][12].