HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

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Equity Capital Markets

Shanghai Top Numerical Control Technology / Equity Capital Markets

Shanghai Top Numerical Control Technology (7688 HK)

Shanghai Top Numerical Control Technology

<ul>
<li>The scarcity of Top Numerical Control (TNC) is reflected in high technological barriers, independent supply chain and strong customer barriers, but there is growth ceiling due to small market size</li>
<li>TNC’s main-business profit remained fragile. Commercialization of six-axis CNC machine tools may disrupt the existing market landscape. Declining utilization rate will lead to overcapacity/impairment issue, thereby dragging down profit level.</li>
<li>Considering policy support for "industrial machines" by government, the urgency of import substitution, and the valuation premium brought by concept of commercial aerospace, TCN’s valuation center could be RMB4.0-7.7 billion.</li>
</ul>


The scarcity of Top Numerical Control (TNC) is reflected in high technological barriers, independent supply chain and strong customer barriers, but there is growth ceiling due to small market size
TNC’s main-business profit remained fragile. Commercialization of six-axis CNC machine tools may disrupt the existing market landscape. Declining utilization rate will lead to overcapacity/impairment issue, thereby dragging down profit level.
Considering policy support for "industrial machines" by government, the urgency of import substitution, and the valuation premium brought by concept of commercial aerospace, TCN’s valuation center could be RMB4.0-7.7 billion.


Pre-IPO Shanghai Top Numerical Control Technology (PHIP Updates) - Some Points Worth the Attention