【GlobalData】2024纳克检测技术股份有限公司财务分析综述报告_25页_497kb

Summary of NCS Testing Technology Co Ltd (300797) - Financial Analysis Review

Core Content

NCS Testing Technology Co Ltd (NCS) is a subsidiary of China Iron & Steel Research Institute Group Co Ltd and operates in the Technology and Communications industry. The company is based in Beijing, China, and provides a range of analysis and testing instruments, including testing machines, XRF spectrometers, mass spectrometers, oxygen and nitrogen analyzers, detection devices, and inspection equipment. It also sells metallurgical and nonferrous reference materials and offers services such as third-party testing, proficiency testing, marine corrosion engineering, and training consultation.

NCS has 1,199 employees and is listed on the Shenzhen Stock Exchange under the ticker symbol 300797. As of 02-Aug-2024, the company's share price is CNY9, with an EPS of CNY0.34. Its market cap is CNY3,445 million, and enterprise value is CNY3,332 million.

Key Points

Company Overview

• Products & Services: Testing machines, XRF and mass spectrometers, oxygen and nitrogen analyzers, detection devices, inspection equipment, metallurgical and nonferrous reference materials, third-party testing, proficiency testing, marine corrosion engineering, and training consultation.
• Headquarters: No.13, Gaoliang Bridge Inclined Street, Haidian District, Beijing, China.
• Operations: Across China.
• Key Executives:
  • Yang Zhigang – Chairman and General Manager (since 2022)
  • Zhang Xiaowei, Xia Ning, Qu Xuanhui, Tang Jianxin, Li Han, Huang Seabuckthorn – Directors (since 2017–2022)
  • Yuan Liangjing, Zhang Xiuxin, Bao Lei, Han Bing, Liu Bin – Deputy General Managers and Senior Management (since 2017–2022)

Key Competitors

• Horiba Ltd (Headquarters: Japan, Revenue: US$2,147 million)
• Wuhan Guide Infrared Co Ltd (Headquarters: China, Revenue: US$341 million)
• Jiangsu Skyray Instrument Co., Ltd. (Headquarters: China, Revenue: US$144 million)

Financial Performance

• Fiscal Year 2022 (Dec):
  • Revenue: CNY815.4 million
  • Net Profit: CNY125.70 million
  • Operating Margin: 13.5%
  • Net Margin: 14%
• Third Quarter 2023 (Sep):
  • Revenue: CNY233.1 million
  • Revenue Growth: 9% compared to previous quarter

Financial Ratios (as of 02-Aug-2024)

• P/E Ratio: 27.41
• EV/EBITDA: 32.01
• Enterprise Value/Sales: 3.51
• Enterprise Value/Operating Profit: 32.01
• Enterprise Value/Total Assets: 1.77
• Dividend Yield: 0.99%

Annual Financial Ratios (2019–2023)

• EPS: 0.23 (2019), 0.21 (2020), 0.23 (2021), 0.23 (2022), 0.34 (2023)
• Dividend per Share: 0.02 (2019), 0.02 (2020), 0.07 (2021), 0.09 (2022), 0.10 (2023)
• Dividend Cover: 12.56 (2019), 9.80 (2020), 3.34 (2021), 2.54 (2022), 3.36 (2023)
• Book Value per Share: 1.92 (2019), 2.12 (2020), 2.28 (2021), 2.54 (2022), 2.82 (2023)
• Cash Value per Share: 1.12 (2019), 1.18 (2020), 1.02 (2021), 1.02 (2022), 0.71 (2023)
• Gross Margin: 42.72% (2019), 43.19% (2020), 45.51% (2021), 46.45% (2022), 46.59% (2023)
• Operating Margin: 12.99% (2019), 13.82% (2020), 12.47% (2021), 13.49% (2022), 10.92% (2023)
• Net Profit Margin: 12.65% (2019), 13.19% (2020), 12% (2021), 13.96% (2022), 13.24% (2023)
• Profit Markup: 74.57% (2019), 76.04% (2020), 83.52% (2021), 86.75% (2022), 87.23% (2023)
• Return on Equity: 9.65% (2019), 9.80% (2020), 9.93% (2021), 12.06% (2022), 11.94% (2023)
• Return on Capital Employed: 8.98% (2019), 9.24% (2020), 8.23% (2021), 9.31% (2022), 8.09% (2023)
• Return on Assets: 8.28% (2019), 7.35% (2020), 6.78% (2021), 7.48% (2022), 7.09% (2023)
• Return on Fixed Assets: 51.98% (2019), 40.96% (2020), 25.96% (2021), 21.65% (2022), 15.51% (2023)
• Return on Working Capital: 11.77% (2019), 13.69% (2020), 16.78% (2021), 23.82% (2022), 27.17% (2023)
• Sales Growth: 8.08% (2019), 7.14% (2020), 19.84% (2021), 16.22% (2022), 16.45% (2023)
• Operating Income Growth: 1.73% (2019), 13.97% (2020), 8.15% (2021), 25.70% (2022), -5.68% (2023)
• Net Income Growth: 7.64% (2019), 11.69% (2020), 9.03% (2021), 35.22% (2022), 10.41% (2023)
• EPS Growth: 1.20% (2019), -10.79% (2020), 8.63% (2021), -0.15% (2022), 47.95% (2023)
• Working Capital Growth: 85.58% (2019), -2% (2020), -11.77% (2021), -11.43% (2022), -17.32% (2023)
• Capex to Sales: 8.73% (2019), 13.84% (2020), 17.59% (2021), 22.62% (2022), 17.38% (2023)
• R&D to Sales: 7.84% (2019), 6.64% (2020), 7.31% (2021), 11.24% (2022), 8.86% (2023)

Interim Financial Ratios (Mar-2023 to Mar-2024)

• Interim EPS: 0.03 (Mar-2023), 0.08 (Jun-2023), 0.10 (Sep-2023), 0.12 (Dec-2023), 0.03 (Mar-2024)
• Dividend per Share: 0.10 (Dec-2023)
• Book Value per Share: 2.57 (Mar-2023), 2.60 (Jun-2023), 2.61 (Sep-2023), 2.82 (Dec-2023), 2.86 (Mar-2024)
• Gross Margin: 42.28% (Mar-2023), 47.53% (Jun-2023), 52.38% (Sep-2023), 43.20% (Dec-2023), 42.25% (Mar-2024)
• Operating Margin: 0.94% (Mar-2023), 14.06% (Jun-2023), 15.07% (Sep-2023), 11.45% (Dec-2023), 1.29% (Mar-2024)
• Net Profit Margin: 5.56% (Mar-2023), 15.54% (Jun-2023), 16.62% (Sep-2023), 13.48% (Dec-2023), 5.90% (Mar-2024)
• Profit Markup: 73.25% (Mar-2023), 90.58% (Jun-2023), 109.99% (Sep-2023), 76.05% (Dec-2023), 73.16% (Mar-2024)
• PBT Margin: 0.97% (Mar-2023), 13.93% (Jun-2023), 15.03% (Sep-2023), 11.54% (Dec-2023), 0.98% (Mar-2024)
• Current Ratio: 2.03 (Mar-2023), 1.98 (Jun-2023), 1.90 (Sep-2023), 1.64 (Dec-2023), 1.72 (Mar-2024)
• Quick Ratio: 1.49 (Mar-2023), 1.41 (Jun-2023), 1.28 (Sep-2023), 1.19 (Dec-2023), 1.14 (Mar-2024)
• Debt to Equity Ratio: 0.14 (Mar-2023), 0.12 (Jun-2023), 0.11 (Sep-2023), 0.12 (Dec-2023), 0.10 (Mar-2024)
• Net Debt to Equity: -0.13 (Mar-2023), 0.36 (Jun-2023), -0.06 (Sep-2023), 0.37 (Dec-2023), 0.01 (Mar-2024)
• Debt to Capital Ratio: 0.12 (Mar-2023), 0.10 (Jun-2023), 0.09 (Sep-2023), 0.10 (Dec-2023), 0.08 (Mar-2024)

Key Information

• Revenue: CNY815.4 million (2022), with a 16.2% increase from 2021.
• Net Profit: CNY125.70 million (2022).
• Employees: 1,199.
• Share Price: CNY9 (as of 02-Aug-2024).
• Market Cap: CNY3,445 million.
• Enterprise Value: CNY3,332 million.
• Share Outstanding: 383 million shares.
• Key Competitors: Horiba Ltd, Wuhan Guide Infrared Co Ltd, Jiangsu Skyray Instrument Co., Ltd.
• Growth Trends:
  • Sales growth in 2021 was the highest at 19.84%.
  • Net income growth in 2022 was significant at 35.22%.
  • EPS growth in 2023 was 47.95%.
• Liquidity and Leverage:
  • The company's liquidity ratios have been declining over the years.
  • Debt to Equity Ratio has been steadily decreasing.
• Profitability:
  • Gross margin has shown consistent growth.
  • Operating margin and net profit margin have fluctuated.
  • Profit markup has increased significantly in recent years.

Conclusion

NCS Testing Technology Co Ltd is a growing player in the Technology and Communications sector, with a strong product portfolio and a diverse range of services. The company has shown mixed financial performance, with notable growth in net income and EPS in 2023. However, liquidity ratios have been on a downward trend, which may indicate increasing financial risk. The company's financial health and performance are closely monitored through a range of financial ratios, and it faces competition from well-established firms such as Horiba Ltd.