According to Zhixin Finance APP, on July 1st, Qiaofeng Intelligence (301603.SZ) started subscription, with an offering price of 26.50 yuan/share, a subscription limit of 7,000 shares, a P/E ratio of 19.96 times, and belongs to the ChiNext board of the Shenzhen Stock Exchange, with Guotou Securities as its exclusive sponsor.

According to the prospectus, Qiaofeng Intelligence is a high-tech enterprise specializing in the R&D, production and sales of CNC machine tools. The company has been deeply involved in the machine tool industry for many years and has been committed to developing high-precision, high-reliability, high-efficiency and intelligent domestic modern "industrial mother machines" to provide higher quality CNC machine tool equipment for the transformation and upgrading of intelligent manufacturing. The company currently has more than 80 high-end models in categories such as vertical machining centers, gantry machining centers, and horizontal machining centers. The company's products are widely used in industries such as general equipment, consumer electronics, automobile and motorcycle accessories, molds, construction machinery, military industry, energy, medical instruments, aerospace, and 5G communications.

During the reporting period, the company's main operating income by product category is as follows:

Machine tools are machines for manufacturing machines. In general machine manufacturing, the processing workload of machine tools accounts for 40% to 60% of the total workload of machine manufacturing, and they are an important cornerstone of modern industrial development. According to data from the China Machine Tool Industry Association, in 2023, China's metal cutting machine tool production value was 113.5 billion yuan, a year-on-year decrease of 6.7%. China's machine tool industry has a certain cyclical nature. The new cycle of upward movement is the development process of China's manufacturing industry transfer, industrial upgrading, and demand upgrading. In the future, machine tool renewal, upgrading and import substitution will become the main growth drivers of the industry.

It is reported that Qiaofeng Intelligence plans to use the funds raised after deducting the issuance expenses for the following projects:

In terms of finance, the company's operating income is expected to be approximately 1.31 billion yuan, 1.548 billion yuan, and 1.454 billion yuan in 2021, 2022 and 2023, respectively. The company's net profit is expected to be approximately RMB 235 million, RMB 193 million, and RMB 170 million, respectively.

It is noteworthy that the prospectus specifically reminds investors to pay attention to the risk of declining gross profit margin. During the reporting period, the gross profit margin of the company's main business was 34.89%, 29.04%, and 28.99%, respectively, which was generally stable. Among them, the decrease of the gross profit margin in 2022 compared with 2021 was mainly due to price adjustments and the increase in casting prices since the second half of 2021. In the future, with the expansion of business scale and the increasing market competition pressure, there is a risk of decline in the company's gross profit margin. The main risk factors of the decline in the gross profit margin of the company's main business include: (1) If the future macroeconomic growth slows down and market competition intensifies, the company will not rule out accelerating market promotion and expanding market share through appropriate pricing strategies; (2) The company accelerates the layout of the distribution model, and the gross profit margin of distribution is lower than that of direct sales; (3) The direct material cost of the company's main business cost structure accounts for a relatively high proportion, 85.85%, 84.47%, and 83.38% respectively during the reporting period. The raw materials of the company's products mainly include machine body castings, as well as functional components such as CNC systems, linear guides, and lead screws.

During the reporting period, the market prices of functional components such as CNC systems, linear guides, and lead screws were generally stable, and the company's procurement prices have slightly decreased due to the increase of procurement scale. There were certain fluctuations in casting prices during the reporting period. They rose sharply in the second half of 2021 and remained stable after falling back in 2022. If the price of raw materials rises in the future, it will adversely affect the gross profit margin of the company's products. Therefore, affected by factors such as market competition, the company's business strategy, and raw material prices, there is a risk of decline in the gross profit margin of the company's main business.