This article is taken from one of the series "Looking for the Invisible Champion in A-shares" of TF Securities Research Report: Which targets in the market value of 11 billion have been ignored?

1. Why are you looking for an "invisible champion"?

in recent years, the performance of Shanghai and Shenzhen 311 has been dominated by trends, and the blue-chip style market of value has been continuously rising for many times in the past few years. Since 2121, the short-term investment opportunities of value blue chips are difficult to grasp, and the long-term endogenous motivation is relatively insufficient.

under the current background, compared with the blue-chip companies with the value of "obvious champion" that have been rising continuously in the past few years, we think that the "invisible champion" with relatively cheap investment valuation, stable and upward fundamentals, leading position in subdivided tracks and certain market pricing power is an investment strategy with higher risk-return ratio.

2. What is an "invisible champion"?

in what fields? -tradition or emerging? Invisible champions are born in different fields, but they will always develop in a certain direction with the intersection of technological development and market demand;

2B or 2C? Invisible champions are mostly in the field of 2B, and they are suppliers of supporting products behind customers.

is the market size large or small? Invisible champion focuses on its business, and its market size is usually small, and its own scale is mostly small and medium-sized enterprises.

The industries where the invisible champions are located are mostly concentrated in manufacturing and chemical industries, and the dominant industries of the invisible champions in different countries have their own emphases. China stealth champions are mainly distributed in the Yangtze River Delta and the Pearl River Delta, and they are developing at the right time.

There are three criteria for screening the A-share "invisible champion": ranking in the top three in the world market or in China, rarely known to the outside world, and earning less than 21 billion yuan annually; Four characteristics: business focus, resource advantages (R&D and innovation capabilities), steady growth in performance and leading market share.

3. Selection criteria of "invisible champion" 4. List of the first batch of "invisible champion"

Guangzhou Restaurant: Cantonese-style moon cake leader & Quick-frozen food leads

Sailun tire: the world's leading supplier of mining tires

Bosch shares: the automation leader in the later stage of petrochemical industry & Industrial robots are ahead

Safety inspection: the leader in integrated inspection of motor vehicles

Jincheng Medicine: Cephalosporin Intermediate &; Leading supplier of glutathione.

4. Details of the company

1) Guangzhou Restaurant: Guangdong-style moon cake leader &; The leader of quick-frozen food

Guangzhou Restaurant Group Co., Ltd. was founded in 1935, and now the company is listed on the Shanghai Stock Exchange in June 2117 (Guangzhou Winemaker, 613143). The company has developed into a large-scale food manufacturing and catering service group with Lingnan characteristics. From 2112 to 2118, the production and sales of moon cakes ranked first in the country, and it is the leader of Cantonese-style moon cakes. At the same time, it has vigorously developed frozen foods to form new profit growth points.

The business focuses on "Cantonese flavor", based on Guangdong in terms of catering and food, and opening up domestic and foreign markets.

① "Food and Beverage Brand", deeply cultivate Guangzhou. The company started out in the catering business, and its main brands are self-operated Cantonese Chinese food "Guangzhou Restaurant" and "Tianji". In addition, it has cultivated and developed a number of distinctive catering brands such as "Xixidi", "Haotangxing" and "Xingyue City", and also developed antique famous banquets such as "Full Banquet in Man and Han", "Banquet in Five Dynasties" and "Banquet for the King of South Vietnam". In 2119, the company signed the Cooperation Framework Agreement for Taotaoju, aiming at promoting the revival and reconstruction of Guangzhou's time-honored brands. At present, the company's catering sales model is mainly direct sales, with 19 catering direct sales stores, most of which are located in Guangzhou;

② "Food has reached a large scale" and moved towards home and abroad. The company's food manufacturing business is mainly based on moon cake series products and quick-frozen foods, supplemented by bacon, cake crisp, bread, western pastry and other categories, and has well-known brands such as "Likoufu", "Autumn Wind" and "Making Crisp". This plate mainly adopts direct sales and distribution mode, including self-owned chain stores, e-commerce, supermarkets, special channels, distributors and chain franchisees. At present, the company and its subsidiaries have more than 211 cake houses (including franchise stores). Among them, "Likoufu" is the company's main brand, with many chain stores and outlets in the city and general distribution in many provinces, cities and autonomous regions in China. Its products cover eight series, such as Mid-Autumn moon cakes, quick-frozen snacks, Cantonese-style bacon, lotus seed paste stuffing, cake bread, safe lunch, snack food and Dragon Boat Festival dumplings, which are sold well in China and exported to the European Union, the United States, Canada, Australia, New Zealand and other countries and regions.

Time-honored and innovative brands have enjoyed a good reputation year after year, and the production and sales ratio is still in short supply. By continuously increasing the brand influence, the company continuously expanded its sales volume, thus driving the output, and the production and sales remained at a high level than normal. The brand "Guangzhou Restaurant" has a high recognition among the catering industry consumers, and enjoys the reputation of "the first place to eat in Guangzhou", and has been selected as the fourth batch of municipal intangible cultural heritage list in Guangzhou for its "Cantonese cooking skills". In 2116, the company was awarded as "China Famous Brand Product"; From 2112 to 2118, the production and sales volume ranked first in the country for seven consecutive years, and was awarded the honor of "the first mooncake in China" by China Hotel Association; In 2117, it was certified as a high-tech enterprise, and in 2119, it was recognized as "Guangdong Key Agricultural Leading Enterprise". Up to now, the company has cultivated six generations of Cantonese cooking skills inheritors and nearly 111 famous Cantonese craftsmen, and has participated in cooking competitions on behalf of the country, provinces and cities for many times. Entrusted by the Overseas Chinese Affairs Office of the State Council for many years, the Chef Group visited Latin America, Oceania, Northern Europe and other places as a food ambassador to promote Cantonese cuisine culture.

in order to meet the needs of consumers, the company's production capacity continues to expand. The company has set up food manufacturing and production bases in Panyu, Meizhou, Maoming and Xiangtan. As of the annual report of 2118, the company's moon cake series products produced 1.16 million tons, with a sales volume of 1.15 million tons, with a production-sales ratio of 99.49%. The output of quick-frozen food is 21,611 tons, the sales volume is 21,211 tons, and the ratio of production to sales is 98.19%. According to the company's announcement in March, 2119, the production capacity of moon cakes and fillings is not less than 2,111 tons/year and not less than 6,111 tons/year, even though the production capacity has been expanded to 7,141 tons.

years of steady growth in performance and steady improvement in profitability. From 2111 to 2118, the company's revenue rose from 1.166 billion yuan to 2.537 billion yuan, and CAGR reached 11.75%, an increase of 2.18 times; The net profit of returning to the mother rose from 48 million yuan to 384 million yuan, and the CAGR reached 14.56%, an increase of 2.59 times; The gross profit margin benefited from the scale of production and the proper control of raw material costs, which reduced the cost and achieved continuous improvement. In 2118, it was 54.66%, an increase of 7.38pct； compared with 2111. The net interest rate has been increasing steadily for many years, reaching 15.11% in 2118, an increase of 2.39pct compared with 2111. In 2119, the company opened online channels, and the single store sales of Double Eleven Tmall flagship store increased by 1.38% year-on-year, the sales turnover of JD.COM channel increased by 1.11% year-on-year, and the sales of Double Twelve JD.COM channel increased by 711% year-on-year, ranking in the self-operated pastry list in JD.COM, and the company jumped to the third place in the country. On February 7th, the company also reached a cooperation with JD.COM Supermarket, which enabled its time-honored food brands to take the e-commerce express train, and * * * promoted a substantial year-on-year increase in sales in 2121.

2) Sailing tire: the global leading supplier of mining tires

Sailing Group Co., Ltd. was established in Qingdao in 2112 and listed on Shanghai Stock Exchange in 2111 (Sailing Tire, 611158), which is the first domestic private tire enterprise with A-share listing. The company is mainly engaged in the research, production, marketing and service of tires, and is a leading supplier of all kinds of tires for mining.

Deeply cultivate the tire industry and devote to "making a good tire". The company's tire products are mainly divided into semi-steel radial tires, all-steel radial tires and off-road tires, which are widely used in cars, light trucks, large buses, trucks, special vehicles and other fields; Recycling products mainly include retreaded tires, tread rubber, rubber powder, steel wire, etc., which are respectively used in tire replacement, old tire retreading, reclaimed rubber manufacturing, high-quality steel production and other fields; Tire trading business mainly adopts market-oriented operation mode, purchasing tire products from other companies and selling them to the outside world.

internationalization and going abroad are important strategies that the company has always adhered to. In terms of channels, more than half of the company's products are exported overseas and sold well in more than 111 countries and regions such as Europe, America, Asia and Africa. The expanding scale of overseas sales benefits from the perfection of the company's global marketing system. At present, the company has formed a global marketing network focusing on sales companies and service centers in North America, Africa, Southeast Asia and Europe, supplemented by sales representative offices in other regions. In terms of talents, the company has continuously introduced overseas experts to the R&D team and management team, and at the same time trained and selected outstanding talents from production workers to be sent overseas for further study, and trained international talents from within the company.

The company builds the advantage barrier from two aspects:

① Building the industry leadership from the technology. Since its inception, the company has attached great importance to technological innovation and invested a lot of research and development expenses every year to support independent innovation. The company is a scientific research demonstration base of "National Rubber and Tire Engineering Technology Research Center". By the end of 2118, the company had about 253 patents and participated in the formulation or revision of 88 national and industrial standards. The company is the first advanced technology enterprise in China to develop a tire with "electronic identity"-RFID smart tire, and it is also the first enterprise in the industry to adopt information technology to control the whole production process. In recent years, the company has been awarded national honorary qualifications such as "National Intelligent Manufacturing Pilot Demonstration Enterprise", "National Industrial Internet Pilot Demonstration Enterprise", "National Internet of Things Integration Innovation and Integration Application Demonstration Enterprise" and "National Service-oriented Manufacturing Demonstration Enterprise".

years of steady growth in performance and steady improvement in profitability. From 2111 to 2118, the company's revenue rose from 4.15 billion yuan to 13.685 billion yuan, and CAGR reached 16.44%, an increase of 3.38 times; The net profit of returning to the mother rose from 13 million yuan to 668 million yuan, and the CAGR reached 24.84%, an increase of 5.91 times; The gross profit rate was 19.82% in 2118, an increase of 11.47pct； compared with 2111; The net profit rate was 4.81% in 2118, an increase of 2.11pct compared with 2111. On the whole, the company's production and sales of all-steel tires and semi-steel tires have steadily increased, and the gross profit margin has been continuously improved. Off-road tires have achieved major breakthroughs in terms of production, sales and channels, and their profitability has been continuously improved. According to the 2119 performance report, the company continued to benefit from market development and the low price of raw materials. At the same time, the new production capacity of the factory in Vietnam was running well. In 2119, the revenue was 15 billion yuan, up by 11.34% year-on-year, and the net profit attributable to the mother was 1.2 billion yuan, up by 79.61% year-on-year.

3) bosch co., ltd.: the automation leader in the later stage of petrochemical industry &; Leading industrial robots

Harbin Boshi Automation Co., Ltd. started in Harbin in 1997, and now the company is listed on Shenzhen Stock Exchange in 2112 (Boshi shares, 112698). The company is mainly engaged in the research, production and marketing of large-scale intelligent complete sets of equipment and environmental protection process equipment, and provides supporting value-added services related to the equipment. It is the leader in the field of complete sets of petrochemical post-treatment equipment in China and the world leader in the field of high-temperature mining furnace robots.

based on the traditional petrochemical back-office automation field, seize the opportunity of emerging robot products. The company's traditional main business is complete sets of automatic palletizing equipment for granular materials in petrochemical field, which can provide fully automatic solutions for post-treatment of solid materials in downstream petrochemical, coal chemical, salt chemical, fertilizer, fine chemical and other chemical industries. Over the years, the business has continued to expand to areas with automatic weighing and packaging requirements such as grain, food, beverage, building materials, ports and feed. The accumulation of technology in the field of petrochemical automation has laid the foundation for the company's business to extend to the high-end industrial robot products with the same origin and different uses, and now it has won the top spot in many fields, forming a new growth point of performance:

① In the metallurgical field, the company's self-developed special robot products for high-temperature operation in front of calcium carbide furnace can replace manual operation to realize high-temperature dangerous operation. At the same time, the company continues to promote the research and development of robots in all aspects of submerged arc furnace and alloy smelting, and some products have entered the debugging stage;

② In the high-end medical field, the company has invested in a number of medical companies by investing in testing high-end medical robots. The projects involved include the research and development of minimally invasive abdominal surgery robots, the research and development of image-guided radiotherapy precise positioning system, and the research and development of remotely assisted minimally invasive pedicle implantation robots.

at the same time, in order to meet other post-processing needs of downstream customers, the company

① acquired Austrian P& in the field of energy conservation and environmental protection; Company P has acquired waste acid treatment technology, and its related business has now achieved rapid growth;

② The introduction of intelligent information system for intelligent freight transport equipment in the field of intelligent logistics can realize the automation of warehousing, storage and delivery of logistics. At present, the company's main market is domestic, and its products are sold to all provinces and regions except Hong Kong, Macao and Taiwan, and exported to more than ten countries in Europe, Asia and Africa. The downstream customers include industry giants such as PetroChina, Sinopec, Global Engineering, Zhongtai Mining and Metallurgy, Junzheng Group and Yihai Kerry.

the company has complete factory buildings and production line facilities, laying the foundation for creating "precision tools" for intelligent manufacturing.

in terms of production, the company has now built more than 41,111 square meters of manufacturing and assembly debugging workshops, with more than 111 sets of production and processing equipment and experimental testing equipment. By the end of 2118, the annual output value of core products and supporting services of the company's intelligent complete sets of equipment reached 413 million yuan;

in terms of research and development, the company integrates the accumulation of industrial resources with the strong academic advantages of Harbin Institute of Technology, and has independently developed a number of technologies and products to fill domestic gaps and have independent intellectual property rights. The performance indicators of major products have reached the domestic leading and international advanced level. According to the data of Patent Gateway, as of 2119, the company has applied for China National Intellectual Property Administration to approve 225 patents, including 99 utility models, 76 inventions, 47 inventions and 3 designs. At the same time, the company has a considerable number of nuclear technology in the form of proprietary technology by security measures, and the technical barriers are solid.