Under the influence of the new energy tide, Xiangxin Technology (002965.SZ) is at the forefront, the pace of obtaining orders for related business continues to accelerate, and the stock price has also soared, setting new highs this year.
Since bottoming out and rebounding on April 27, Xiangxin Technology's cumulative increase has reached 250.3%, becoming the top component stock , which has the largest increase in the automotive parts sector.
01 focuses on new energy, and orders soar
Public information shows that Xiangxin Technology was established in 2004 and was initially engaged in the production of hardware and electronic metal structural parts. Relying on the advantages of metal forming technology, it has continuously expanded downstream. In 2008, it officially entered the field of automobile stamping molds and metal structural parts. Since then, the company has entered the production of structural parts in the communications field with its advantages. In 2012, the company has once again set its sights on the emerging new energy industry.
As of the moment, the company's main products include precision stamping molds and metal structural parts of fuel vehicles/new energy vehicles, precision stamping molds and metal structural parts of energy storage equipment, precision stamping molds and metal structural parts of communication equipment, as well as other precision stamping molds and metal structural parts, such as photovoltaic inverter , charging pile chassis, etc.
Among them, new energy vehicle-related businesses (body structural parts + power battery box) are currently the biggest highlight of Xiangxin Technology and have become the main driving force of the company's performance. In the first half of 2022, the product revenue of this sector was 954 million yuan, up 193.07% year-on-year; accounting for 55.82%, and increased by 23.56 percentage points year-on-year; the profit ratio was as high as 62.08%.
In this field, the company supplies power battery boxes, lightweight body structural parts, heat exchange system precision components, chassis system components and other products to GAC Aion, Geely Auto (00175.HK), BYD (002594.SZ) (01211.HK), CATL (300750.SZ), Funeng Technology (688567.SH), Xinwangda (300207.SZ), Guoxuan Hi-Tech (002074.SZ), Yiwei Lithium Energy (300014.SZ), Tafir and other companies.
At the same time, in the field of smart cars, the company provides Huawei Automobile, Desai Xiwei (002920.SZ) and other companies with products that can be used for VGW intelligent networking, OBC vehicle charging, mPOWER intelligent electric, AIS fusion perception and other modules, and has become a first-tier supplier of complete vehicle manufacturers such as GAC Group (02238.HK), GAC Aion, FAW Volkswagen , NIO (NIO.US) (09866.HK), Geely Automobile, Daimler , BYD, Xiaopeng Automobile (XPEV.US) (09868.HK) and other complete vehicle manufacturers.
With the rapid development of new energy vehicles, Xiangxin Technology, as a leading enterprise in the automotive mold and parts industry, has enjoyed the dividends of industry growth, and orders have increased significantly.
On August 31, Xiangxin Technology disclosed that the company received a fixed-point intent letter of intent from 10 projects from power battery-related customers from April to August 2022. The estimated project transaction amount is 5-6 billion yuan, with a cycle of 3-7 years.
In addition, under the dual carbon target, the installation volume of photovoltaic , wind power, etc., has driven the installation demand for "strong distribution" of energy storage. As new energy storage enters the stage of large-scale development from the initial stage of commercialization, Xiangxin Technology actively deploys the fields of energy storage and photovoltaic inverters, which is the company's key development business in the future.
In the field of energy storage and photovoltaics, Xiangxin Technology has supplied photovoltaic inverters, energy storage cabinets, charging pile chassis and other related products to well-known domestic and foreign companies such as Huawei , Xinnengan, EnphaseEnergy, Larsen, FENECONGmbH, etc. This field is expected to become the second growth point of the company's performance in the future.
In the first half of 2022, energy storage equipment precision stamping molds and metal structural parts revenue was 230 million yuan, an increase of 238.07% year-on-year; accounting for 13.02%, an increase of 6.71 percentage points year-on-year.
In the second quarter of 2022, Xiangxin Technology won the bid for three energy storage photovoltaic inverter projects, with a total order amount of 1.15 billion yuan. The targeted intention projects received this time also come from this business scope.
In the second half of 2022, Xiangxin Technology received another large order for downstream customers. On September 5, the announcement showed that the company received a bid notice from inverter and energy storage-related customers, and determined that the company is a supplier of commercial inverters and energy storage-related products. The estimated life cycle of project is 3 years, and the estimated project transaction amount is RMB 700 million to RMB 800 million.
Judging from the current disclosure announcement, the expected orders for Xiangxin Technology's new energy business are indeed considerable and may have a positive impact on the company's future operating performance.
02 revenue has increased steadily, and its profitability is under pressure
returns to the performance level. With the continuous rise in the new energy track's prosperity, Xiangxin Technology delivered a good report card in the first half of 2022.
data shows that in the first half of 2022, the company achieved revenue of 1.71 billion yuan, a year-on-year increase of 69.4%; achieved net profit attributable to shareholders of RMB 75.97 million, a year-on-year increase of 56.4%; as of the end of June 2022, the company's net operating cash flow inflow was RMB 34.6562 million, while the net outflow in the same period last year was RMB 36.465 million, and the operating cash flow improved significantly.
Before this, Xiangxin Technology's overall performance was stable. From the perspective of revenue, the company's revenue scale has continued to expand from 373 million yuan in 2012 to 2.371 billion yuan in 2021; on the profit side, in addition to 2021, the company's net profit attributable to shareholders also maintained a steady growth trend overall.
From the perspective of gross profit margin, Xiangxin Technology's profitability performance is not outstanding. In recent years, the company's overall gross profit margin has shown a downward trend year by year. In the first half of 2022, the company's gross profit margin has dropped from 25.52% in 2018 to 16.82%.
is subdivided into various business segments. In the first half of 2022, except for the precision stamping mold and metal structural parts business of energy storage equipment, the gross profit margins of other businesses of Xiangxin Technology have declined to varying degrees.
For this reason, Xiangxin Technology bluntly stated that it is mainly affected by the price increase of raw materials for metal materials such as steel and aluminum. If raw material prices continue to fluctuate significantly in the future, the company's gross profit will continue to be under pressure.
In addition, the author noticed that although , although Xiangxin Technology's revenue rose by 69.4% in the first half of this year, the operating cost growth rate was even higher, reaching 72.06%. Mainly due to the impact of the epidemic, the sales of the Changshu factory, Tianjin factory and Ningbo factory did not meet expectations.
Conclusion:
It can be seen that Xiangxin Technology has accumulated strength in popular fields such as "new energy vehicles", "energy storage", and "photovoltaics", and the company's stock price trend is also quite strong.
Driven by the new energy boom, Xiangxin Technology has abundant orders for designated-point projects, and the company's performance improvement potential is great, which is worth looking forward to. However, it will take some time for the intended order to become profit income of real money. In the future, we will wait and see whether Xiangxin Technology's stock price can continue to rise.
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