The electronic information industry is one of the pillar industries in Huizhou, and PCB is the mother of electronic products. Among the 20 listed companies in Huizhou, 4 are PCB manufacturing companies: Shenghong Technology, Junya Technology, Zhongjing Electronics, and Kexiang Co., Ltd. Recently, these four companies released their 2023 annual reports, showing mixed performance, while the reports also disclosed the compensation of their executives. The impressive performance is undoubtedly attributed to the efforts of the executives, and listed companies naturally offer high compensation. So, what is the level of annual salaries for the executives of these four PCB companies?
1. 2023 Salary Exposure First, the highest annual salary for a chairman in 2023 goes to Kexiang Co., Ltd., at 1.86 million yuan, while the other three companies have chairman salaries that are not much different, all slightly above 1.2 million yuan. Secondly, the general manager is usually the chairman as well, with Zhongjing Electronics being the only exception, whose general manager’s annual salary for 2023 is 900,000 yuan; the highest salary for a financial director is at Shenghong Technology, with an annual salary of 750,000 yuan; the company secretary, as the “all-round helmsman” of the company, is crucial, and Junya Technology offered a high salary of 1.65 million yuan to its company secretary. Additionally, we can see that Kexiang Co., Ltd. is the most generous, with a total compensation of 11.05 million yuan for its executives in 2023, while Shenghong Technology, Junya Technology, and Zhongjing Electronics had total executive compensations of 7.31 million yuan, 7.24 million yuan, and 6.26 million yuan, respectively.
In fact, executive compensation is not the only source of income for executives from the company. Some listed companies implement equity incentives, granting executives stocks through restricted stocks, stock options, employee stock ownership plans, etc. The incentive plans are often linked to company performance, which greatly enhances executives’ motivation to achieve performance, and performance is generally positively correlated with stock prices. This positive feedback loop of incentives sometimes surpasses direct salary increases. Additionally, dividends from shares held by executives also serve as a supplementary form of income.2. Annual Report Data Comparison
The annual reports disclosed a lot of performance data and financial conditions. I have summarized and compared the financial indicators of the four companies’ 2023 annual reports for everyone to quickly understand the basic situation of these four companies.
1. Profitability Comparison
In terms of operating income, in 2023, Shenghong Technology, Kexiang Co., Ltd., Zhongjing Electronics, and Junya Technology ranked from high to low at7.931 billion yuan, 2.962 billion yuan, 2.624 billion yuan, 2.427 billion yuan, and in terms of net profit, the four companies had two profitable and two loss-making, corresponding to671 million yuan, -159 million yuan, -137 million yuan, 69 million yuan. The average operating income of A-share PCB listed companies in 2023 was about 4.083 billion yuan, with a net profit of about 297 million yuan. Shenghong Technology leads the other three in both revenue and profit, approximately twice the industry average. Although Junya Technology ranks last in revenue scale among the four, it still made a profit of over 60 million yuan, while Zhongjing Electronics reduced its losses compared to 2022, and Kexiang Co., Ltd. turned from profit to loss.
In terms of net sales profit margin and gross profit margin, in 2023, Shenghong Technology, Junya Technology, Zhongjing Electronics, and Kexiang Co., Ltd. had rates of 8.46%, 2.82%, -5.16%, -5.81% and 20.70%, 20.30%, 11.08%, 8.05%, respectively. The average rates for A-share PCB listed companies were 7.28 and 20.52%, with only Shenghong Technology exceeding the industry average, while Junya Technology’s gross profit margin is close to the industry average. 2. Solvency Comparison
In terms of solvency, Shenghong Technology, Junya Technology, Zhongjing Electronics, and Kexiang Co., Ltd. had asset-liability ratios of 56.13%, 55.89%, 58.67%, and 66.48%, respectively, with corresponding current ratios of 0.96, 0.73, 0.80, and 0.86. The industry averages for asset-liability ratio and current ratio were 40.98% and 1.66, respectively. From these two values, the comprehensive solvency of the four companies is generally average, below the industry average.
3. Operating Capability Comparison
In terms of operating capability, Shenghong Technology, Junya Technology, Zhongjing Electronics, and Kexiang Co., Ltd. had inventory turnover rates of 5.03, 5.63, 3.72, and 8.08 times, and accounts receivable turnover rates of 2.45, 3.67, 2.88, and 1.98 times, respectively. The industry averages for inventory turnover rate and accounts receivable turnover rate were 4.64 and 3.61, with Kexiang Co., Ltd., Shenghong Technology, and Junya Technology all exceeding the industry average in inventory turnover rate, indicating strong inventory liquidation capability. Junya Technology’s accounts receivable turnover rate is also above the industry average, demonstrating excellent operating capability.
4. Growth Capability Comparison
In terms of growth capability, Shenghong Technology, Junya Technology, Zhongjing Electronics, and Kexiang Co., Ltd. had year-on-year revenue growth rates of 0.58%, -5.66%, -14.10%, and 12.36%, respectively, and year-on-year net profit growth rates of -15.09%, -57.85%, 23.33%, and -418.06%. The industry averages for revenue and net profit year-on-year growth rates were -1.78% and -47.01%, respectively. In 2023, the overall situation was quite severe, with only Shenghong Technology surpassing the industry passing line.
5. Secondary Market Performance Comparison
In terms of secondary market performance, Shenghong Technology leads with a total market value of 26.3 billion yuan, while Zhongjing Electronics, Junya Technology, and Kexiang Co., Ltd. have total market values of 4.4 billion yuan, 3.3 billion yuan, and 2.8 billion yuan, respectively. The total market value is also positively correlated with stock price performance. From the beginning of the year to now, Shenghong Technology has seen a price increase of 65%, while the other three have corresponding declines of -18%, -27%, and -34%.
Note: The above data comes from the annual reports of listed companies, choice financial terminal, public information, etc.