ZG Lightning Protect(SZ:300414)2022-12-06 08:42Group 1: Company Overview and Acquisition - Sichuan Zhongguang Lightning Protection Technology Co., Ltd. aims to become the industry leader in lightning protection within 3-5 years after acquiring Tichuang Technology, which has a competitive edge in railway freight and power lightning protection [2][3] - The acquisition of Tichuang Technology was conducted through a private placement at a price-to-earnings (PE) ratio of 7, with a total valuation of 108 million [3][4] - Tichuang Technology is expected to achieve net profits of 10 million, 12 million, 16 million, and 22 million from 2016 to 2019 [3] Group 2: Future Growth and Market Expansion - The company plans to expand its existing lightning protection product business while actively entering military, power, and new energy sectors [4][5] - The company has established strategic partnerships with international photovoltaic inverter companies to enhance its lightning protection product offerings [4] - The company is focusing on high-tech applications in various industries, including telecommunications, military, and new energy, to maintain its competitive advantage [4][5] Group 3: Financial Performance and Market Trends - The company experienced a revenue peak in 2014, followed by a decline in 2015-2016 due to structural adjustments, but anticipates growth in new industries starting next year [6][7] - The company's main product, SPD, accounts for approximately 85% of total sales revenue, with a stable gross margin of around 40% [7][8] - The company expects to continue its acquisition strategy, focusing on complementary businesses within the lightning protection industry [8][9] Group 4: Competitive Positioning and International Business - The company has achieved a competitive pricing advantage, with its products priced at about two-thirds of those from leading German competitors [8][9] - Approximately one-third of the company's revenue comes from overseas orders, with major clients including Ericsson and Samsung [9] - The company is developing new international partnerships and focusing on markets in the Americas and Europe, while also considering Southeast Asia and Africa [9]