Beijing Stock Exchange plans to be listed company Junchuang Technology will subscribe on May 10, seamlessly connecting with the previous new stock, but conflict with Xinhuike on the 11th. The company plans to raise about 150 million yuan in IPO, which will be used for the expansion and technical transformation projects of automobile parts, R&D center construction projects, supplement working capital, and repay bank loans. 9 strategic investors promised to subscribe to 24.2 million yuan. On the list of strategic investors, public funds include Southern Fund, private funds include Danguishun Asset, etc., and broker Huaxin Securities is also among them.
In the context of "plastic instead of steel", the company has established long-term and stable cooperative relationships with many internationally renowned enterprises in providing more useful automotive plastic parts to cater to the development trend of "auto lightweight" and adapting to the green and low-carbon development concept with " carbon peak " and "carbon neutrality" as the core.
Junchuang Technology focuses on the research and development, production and sales of automotive parts as its core business. Its main products cover automotive plastic parts, automotive metal parts and supporting molds, etc. Its customers include global bearing giant SKF, global top 100 automotive parts companies Antonglin and Abofu , the world's leading new energy vehicle manufacturer T Company, the world's top 500 companies Quanta Group and Pegatron United. The auto manufacturers that directly or indirectly serve include T Company, Ford , Jaguar Land Rover , GM, Volkswagen and other European and American brands, Nissan , Toyota and other Japanese brands, as well as Geely , BYD and other domestic independent brands.
1. Enter the T company's first-level supplier system, with an annual sales amount of 100 million
With the development of the New energy automobile industry, the sales of new energy vehicles continue to increase, and the demand for plastic parts for scenarios such as the protection and support of new energy vehicles, such as the protection and support of new energy vehicles, has also increased. Currently, the four models produced by new energy vehicle manufacturer T company are widely used in the company's functional parts of the company's automobile plastic parts. In new energy vehicles, the company's new energy vehicle functional components series are mainly used in new energy vehicles' three-electric systems (motor, battery, electronic control), and mainly utilizes mold manufacturing technology and insert injection molding technology to cooperate with raw material suppliers to achieve "plastic instead of steel".
In 2020, the company's main business revenue increased by 26.7959 million yuan compared with the previous period, an increase of 18.19%; in 2021, the company's main business revenue increased by 166.8301 million yuan compared with the previous period, an increase of 95.83%. It is mainly due to the company's active layout of new energy vehicle industry customers while maintaining stable cooperation with its original large customers SKF and Antonglin, and successfully developing new large customer T companies during the reporting period.
The specific situation is as follows: (1) The company's main customers are automobile manufacturers and their parts suppliers. Thanks to the continuous expansion of the new energy vehicle industry, the sales scale of customers in the new energy vehicle industry has continued to expand, and the company's sales scale to customers in the industry has also increased accordingly. (2) With the continuous improvement of the company's business scale and R&D capabilities, the company has increased its efforts to develop customers in the new energy industry. In 2019, it successively developed customers such as T, a well-known electric vehicle manufacturer, to provide new growth points for the company's revenue during the reporting period.
The company's new energy vehicle functional components series are mainly used in new energy vehicle three-electric systems (motor, electric pool, electrical control), and precision plastic structural components that realize positioning, support, sealing, dustproof, shockproof, and other functional components to provide installation interface conditions. Since the three-electric system is the core system of new energy vehicles, its performance and safety have a significant impact on new energy vehicles, it is necessary to provide supporting applications with strong rigidity, high precision, dimensions and shape and position tolerances, including various PCBA protective covers, brackets and plastic parts with metal inserts. In addition to being used in three-electric systems, the company's new energy vehicle functional components are also used in chassis systems, front doors, tailgate, etc., to achieve support and protection functions.
At present, the company's new energy vehicle functional components are mainly used for the supporting facilities of T Company. The company provides products to it as a first-tier supplier and a second-tier supplier. The products are widely used in all T Company's production models.
In 2017, the company combined with years of experience in R&D, production process and solution demands of downstream customers to solve the abnormal product quality problems for T Company's first-level suppliers. It was recognized by this first-level supplier and was recommended to T Company. After the T Company team further reviewed the company's technology, process, system, price and other aspects, the company was finally approved to become a direct qualified supplier of T Company. Starting from 2019, due to the company's comprehensive competitive advantages, it quickly accumulated designated projects and expanded its cooperation with T Company. In the specific cooperation model with T Company, the company signed the framework agreement with T Company. The procurement orders are issued to the company according to its expected needs and the contract is priced through business negotiations.
Company has started mass cooperation with T Company since 2019. In the early stages of cooperation, as T Company's Shanghai factory was about to be put into production and T Company's global sales increased significantly, the procurement and development work carried out around the increase in T Company's products was carried out simultaneously around the world, and competition was fierce. With its competitive advantages in collaborative development, process technology and response speed, the company has become an important supplier of T Company and obtained the supporting supply qualifications for all T Company models, laying a solid foundation for the company's future business development in the new energy vehicle industry.
In terms of the functional parts series of new energy vehicle, the current requirements for complex structural parts of new energy vehicle customers are constantly increasing, involving the embedding and assembly of diverse components with different structural characteristics. Among the products supplied by the company to T Company, some of the parts are multi-process products, including injection molding, metal parts, dispensing, assembly parts, etc. Among them: metal inlays, sensors, and speakers are all purchased parts from outside. The profit level obtained by the company on the purchased parts is relatively less than that of the company's own products, which dilutes the gross profit margin of this series of products.
021, with the further increase in the proportion of exports of new energy vehicle functional components series, coupled with the dual impact of the rise in raw materials prices and the decline in the exchange rate of US dollar against RMB , the company's export gross profit margin for this period fell sharply compared with the previous period. At present, T Company's new factory has entered the mass production period, the supply chain is becoming stable, and the domestic production rate of parts is constantly increasing. The company's competitive environment is relatively good. At the same time, the production and manufacturing experience of new energy vehicle functional components series has been continuously accumulated, and the process flow has been gradually optimized, production efficiency and product yield have been continuously improved.
At present, the company has entered the first-level supplier system of T Company, and some parts and products are directly supported by T Company's production, and their competitiveness has been further strengthened.
T The company is a world-leading new energy vehicle manufacturer. In the transaction between the company and T Company, the company applied the functional structural parts of "plastic instead of steel" in large quantities in the field of new energy vehicles, and was the first batch of suppliers of T Company's domestic companies and had certain first-mover advantages. The company's comparable company in the field of functional components of new energy vehicles is Xusheng Co., Ltd.
2. The company's comprehensive gross profit margin showed a downward trend
achieved revenue of 345 million yuan in 2021, and increased by 92.91% year-on-year; net profit attributable to shareholders was 28.06 million yuan, a year-on-year increase of 33.49%. The company's R&D expenses last year were 10.98 million yuan, an increase of 23.78% year-on-year, accounting for 3.18% of its revenue.
During the reporting period, the company's comprehensive gross profit margin was 35.30%, 29.62% and 22.57%, respectively, showing a downward trend. The prices of raw materials used in the company's main products, automotive plastic parts, show great fluctuations, and are greatly affected by external factors such as macroeconomic , political environment, and international oil prices. Beijing Stock Exchange plans to be listed company Junchuang Technology will subscribe on May 10, seamlessly connecting with the previous new stock, but conflict with Xinhuike on the 11th. The company plans to raise about 150 million yuan in IPO, which will be used for the expansion and technical transformation projects of automobile parts, R&D center construction projects, supplement working capital, and repay bank loans. 9 strategic investors promised to subscribe to 24.2 million yuan. On the list of strategic investors, public funds include Southern Fund, private funds include Danguishun Asset, etc., and broker Huaxin Securities is also among them.
In the context of "plastic instead of steel", the company has established long-term and stable cooperative relationships with many internationally renowned enterprises in providing more useful automotive plastic parts to cater to the development trend of "auto lightweight" and adapting to the green and low-carbon development concept with " carbon peak " and "carbon neutrality" as the core.
Junchuang Technology focuses on the research and development, production and sales of automotive parts as its core business. Its main products cover automotive plastic parts, automotive metal parts and supporting molds, etc. Its customers include global bearing giant SKF, global top 100 automotive parts companies Antonglin and Abofu , the world's leading new energy vehicle manufacturer T Company, the world's top 500 companies Quanta Group and Pegatron United. The auto manufacturers that directly or indirectly serve include T Company, Ford , Jaguar Land Rover , GM, Volkswagen and other European and American brands, Nissan , Toyota and other Japanese brands, as well as Geely , BYD and other domestic independent brands.
1. Enter the T company's first-level supplier system, with an annual sales amount of 100 million
With the development of the New energy automobile industry, the sales of new energy vehicles continue to increase, and the demand for plastic parts for scenarios such as the protection and support of new energy vehicles, such as the protection and support of new energy vehicles, has also increased. Currently, the four models produced by new energy vehicle manufacturer T company are widely used in the company's functional parts of the company's automobile plastic parts. In new energy vehicles, the company's new energy vehicle functional components series are mainly used in new energy vehicles' three-electric systems (motor, battery, electronic control), and mainly utilizes mold manufacturing technology and insert injection molding technology to cooperate with raw material suppliers to achieve "plastic instead of steel".
In 2020, the company's main business revenue increased by 26.7959 million yuan compared with the previous period, an increase of 18.19%; in 2021, the company's main business revenue increased by 166.8301 million yuan compared with the previous period, an increase of 95.83%. It is mainly due to the company's active layout of new energy vehicle industry customers while maintaining stable cooperation with its original large customers SKF and Antonglin, and successfully developing new large customer T companies during the reporting period.
The specific situation is as follows: (1) The company's main customers are automobile manufacturers and their parts suppliers. Thanks to the continuous expansion of the new energy vehicle industry, the sales scale of customers in the new energy vehicle industry has continued to expand, and the company's sales scale to customers in the industry has also increased accordingly. (2) With the continuous improvement of the company's business scale and R&D capabilities, the company has increased its efforts to develop customers in the new energy industry. In 2019, it successively developed customers such as T, a well-known electric vehicle manufacturer, to provide new growth points for the company's revenue during the reporting period.
The company's new energy vehicle functional components series are mainly used in new energy vehicle three-electric systems (motor, electric pool, electrical control), and precision plastic structural components that realize positioning, support, sealing, dustproof, shockproof, and other functional components to provide installation interface conditions. Since the three-electric system is the core system of new energy vehicles, its performance and safety have a significant impact on new energy vehicles, it is necessary to provide supporting applications with strong rigidity, high precision, dimensions and shape and position tolerances, including various PCBA protective covers, brackets and plastic parts with metal inserts. In addition to being used in three-electric systems, the company's new energy vehicle functional components are also used in chassis systems, front doors, tailgate, etc., to achieve support and protection functions.
At present, the company's new energy vehicle functional components are mainly used for the supporting facilities of T Company. The company provides products to it as a first-tier supplier and a second-tier supplier. The products are widely used in all T Company's production models.
In 2017, the company combined with years of experience in R&D, production process and solution demands of downstream customers to solve the abnormal product quality problems for T Company's first-level suppliers. It was recognized by this first-level supplier and was recommended to T Company. After the T Company team further reviewed the company's technology, process, system, price and other aspects, the company was finally approved to become a direct qualified supplier of T Company. Starting from 2019, due to the company's comprehensive competitive advantages, it quickly accumulated designated projects and expanded its cooperation with T Company. In the specific cooperation model with T Company, the company signed the framework agreement with T Company. The procurement orders are issued to the company according to its expected needs and the contract is priced through business negotiations.
Company has started mass cooperation with T Company since 2019. In the early stages of cooperation, as T Company's Shanghai factory was about to be put into production and T Company's global sales increased significantly, the procurement and development work carried out around the increase in T Company's products was carried out simultaneously around the world, and competition was fierce. With its competitive advantages in collaborative development, process technology and response speed, the company has become an important supplier of T Company and obtained the supporting supply qualifications for all T Company models, laying a solid foundation for the company's future business development in the new energy vehicle industry.
In terms of the functional parts series of new energy vehicle, the current requirements for complex structural parts of new energy vehicle customers are constantly increasing, involving the embedding and assembly of diverse components with different structural characteristics. Among the products supplied by the company to T Company, some of the parts are multi-process products, including injection molding, metal parts, dispensing, assembly parts, etc. Among them: metal inlays, sensors, and speakers are all purchased parts from outside. The profit level obtained by the company on the purchased parts is relatively less than that of the company's own products, which dilutes the gross profit margin of this series of products.
021, with the further increase in the proportion of exports of new energy vehicle functional components series, coupled with the dual impact of the rise in raw materials prices and the decline in the exchange rate of US dollar against RMB , the company's export gross profit margin for this period fell sharply compared with the previous period. At present, T Company's new factory has entered the mass production period, the supply chain is becoming stable, and the domestic production rate of parts is constantly increasing. The company's competitive environment is relatively good. At the same time, the production and manufacturing experience of new energy vehicle functional components series has been continuously accumulated, and the process flow has been gradually optimized, production efficiency and product yield have been continuously improved.
At present, the company has entered the first-level supplier system of T Company, and some parts and products are directly supported by T Company's production, and their competitiveness has been further strengthened.
T The company is a world-leading new energy vehicle manufacturer. In the transaction between the company and T Company, the company applied the functional structural parts of "plastic instead of steel" in large quantities in the field of new energy vehicles, and was the first batch of suppliers of T Company's domestic companies and had certain first-mover advantages. The company's comparable company in the field of functional components of new energy vehicles is Xusheng Co., Ltd.
2. The company's comprehensive gross profit margin showed a downward trend
achieved revenue of 345 million yuan in 2021, and increased by 92.91% year-on-year; net profit attributable to shareholders was 28.06 million yuan, a year-on-year increase of 33.49%. The company's R&D expenses last year were 10.98 million yuan, an increase of 23.78% year-on-year, accounting for 3.18% of its revenue.
During the reporting period, the company's comprehensive gross profit margin was 35.30%, 29.62% and 22.57%, respectively, showing a downward trend. The prices of raw materials used in the company's main products, automotive plastic parts, show great fluctuations, and are greatly affected by external factors such as macroeconomic , political environment, and international oil prices.During the reporting period, the issuer's main business overseas sales revenue was RMB 18.8798 million, RMB 47.145 million and RMB 143.4265 million, respectively, accounting for 12.82%, 27.08% and 42.07% of the main business revenue, respectively. The amount and proportion of overseas sales increased significantly.
main raw materials are modified plastic particles (PP, PC, TPE, PA66, etc.), various steels, etc. During the reporting period, the proportion of the company's direct material accounted for 67.27%, 67.84% and 66.15% of the current main business cost , respectively. Among them, the company's main raw material modified plastic particles belong to the petrochemical industry chain products, and are greatly affected by the price factors of bulk commodities such as crude oil and related chemical products, and its price changes have a greater impact on the company's production costs.
3. Comparable companies and valuations
The company's industry is the "automotive manufacturing industry" in the "manufacturing industry" (industry code: C36), and the industry's average static price-to-earnings ratio in the past month was 25.39 times. The company's issuance price is 12.5 yuan, which corresponds to the full exercise of over-allotment option , the issuer's corresponding net profit diluted price-to-earnings ratio is 25.46 times, slightly higher than the industry's average static price-to-earnings ratio in the past month.
Comparable companies include Xinquan Co., Ltd., Daimei Co., Ltd., Xusheng Co., Ltd., Zhaomin Technology, and Weike Technology. Xinquan Co., Ltd. and Daimei Co., Ltd. are relatively large in scale, and the comparable company in new energy is Xusheng Co., Ltd.
Jiangsu Xinquan Auto Parts Co., Ltd. was established in 2001 and is engaged in the design, manufacturing and sales of automotive interior and exterior parts system parts and molds; self-operating and agenting the import and export business of various commodities and technologies. Announcement on May 21, 2020 revealed: The company has reached a cooperation intention with Tesla and obtained the interior designated project of Tesla Model Y. The company's total market value is 12.4 billion, with a profit of 284 million last year, and a static price-to-earnings ratio of 43 times.
Shanghai Daimei Automobile Interior Parts Co., Ltd. was established in 2001. It is mainly engaged in the research, development, production and sales of passenger car parts. It is a professional automobile parts manufacturer integrating design, development, production, sales and services. The company's total market value is 8.5 billion, its net profit was 416 million last year, and its static price-to-earnings ratio was 21 times.
Ningbo Xusheng Automobile Technology Co., Ltd. is mainly engaged in the research, development, production and sales of precision aluminum alloy automotive parts and industrial parts. The main application areas of products include precision mechanical processing parts of core systems such as new energy vehicle transmission systems, transmission systems, battery systems, suspension systems, etc. The company's total market value is 12.7 billion yuan, with a profit of more than 400 million yuan last year, and a static price-to-earnings ratio of 30 times.
The main business of Shanghai Zhaomin New Materials Technology Co., Ltd. is the research and development, production and sales of precision injection molding parts and supporting precision injection molds. It was just listed on the ChiNext last year, with a total market value of 2.7 billion yuan, a net profit of 116 million yuan last year, and a static price-to-earnings ratio of 23 times.
Xiamen Weike Molding Technology Co., Ltd.'s main business is to engage in the research and development, design, manufacturing and sales of precision injection molds. It was just listed on the ChiNext this year, with a total market value of 4.3 billion yuan, a profit of 192 million yuan last year, and a static price-to-earnings ratio of 22 times.
The average static price-to-earnings ratio of comparable companies in the same industry in 2021 is 30.86 times. Except for Xinquan Co., Ltd. and Xusheng Co., Ltd., the valuations of other companies are more than 20 times. The first two companies have high valuations because of the concept of new energy vehicles.
Junchuang Technology's total share capital after the issuance before exercising the over-allotment option is 55.2 million shares. If the over-allotment option is fully exercised, the total share capital after the issuance is 56.49 million shares. The company's issuance price is 12.5 yuan, corresponding to a total market value of 706 million yuan after issuance. The company's net profit in 2021 was 28.0617 million, corresponding to a 25-fold price-to-earnings ratio. The net profit excluding non-recurring items was 27.7395 million, corresponding to a price-to-earnings ratio of 25.45 times.
According to the average price-to-earnings ratio of the auto parts industry, the company's valuation is obviously high. At the same time, it is listed on the Beijing Stock Exchange, and the valuation must be 30% off. The normal listing valuation is 18 times. In other words, if it is just an ordinary auto parts stock and without the concept of new energy, the company will not exceed 18 times the price-to-earnings ratio.But Junchuang Technology has one advantage, which is the concept of new energy. The largest customer in 2021 is Tesla, with annual sales of more than 100 million yuan. Therefore, I think the valuation of Junchuang Technology is comparable to Xinquan Co., Ltd. and Xusheng Co., Ltd., with an average valuation of 36 times. Of course, Junchuang Technology is listed on the Beijing Stock Exchange, with a discount on liquidity and a valuation of about 25 times.
In addition, Tesla wants to continue to expand production, and the company is expected to make significant profits in the past two years, and its performance is likely to continue to grow. According to the report of CSI on May 4, Tesla has clearly planned to build another new factory near the current Lingang Super Factory in Shanghai to expand production capacity. It is reported that the new factory is expected to produce Model 3 and Model Y models, with an annual production capacity of 450,000 vehicles. After the expansion of the new factory will help Tesla increase the total production capacity of its Shanghai factory to 1 million vehicles per year. Based on this calculation, it means that Tesla's Shanghai factory production capacity will double. Dongwu Securities predicts that Tesla's global electric vehicle delivery volume from 2022 to 2025 will be 1.51 million, 2.2 million, 3.23 million and 4.56 million respectively.
Therefore, I think Junchuang Technology can be subscribed. The biggest highlight of the company is the Tesla concept. The largest customer is Tesla, and it will continue to grow high in the future. However, if the market conditions of the Beijing Stock Exchange are not good, there is also a possibility of breaking the issue price. That is to say, now that new stock issuance is market-oriented, there is basically no need to pay attention to new stock subscription. As the saying goes, if you buy something, you don’t sell something. The bosses and underwriters of listed companies are smart people.
But Junchuang Technology has one advantage, which is the concept of new energy. The largest customer in 2021 is Tesla, with annual sales of more than 100 million yuan. Therefore, I think the valuation of Junchuang Technology is comparable to Xinquan Co., Ltd. and Xusheng Co., Ltd., with an average valuation of 36 times. Of course, Junchuang Technology is listed on the Beijing Stock Exchange, with a discount on liquidity and a valuation of about 25 times.
In addition, Tesla wants to continue to expand production, and the company is expected to make significant profits in the past two years, and its performance is likely to continue to grow. According to the report of CSI on May 4, Tesla has clearly planned to build another new factory near the current Lingang Super Factory in Shanghai to expand production capacity. It is reported that the new factory is expected to produce Model 3 and Model Y models, with an annual production capacity of 450,000 vehicles. After the expansion of the new factory will help Tesla increase the total production capacity of its Shanghai factory to 1 million vehicles per year. Based on this calculation, it means that Tesla's Shanghai factory production capacity will double. Dongwu Securities predicts that Tesla's global electric vehicle delivery volume from 2022 to 2025 will be 1.51 million, 2.2 million, 3.23 million and 4.56 million respectively.
Therefore, I think Junchuang Technology can be subscribed. The biggest highlight of the company is the Tesla concept. The largest customer is Tesla, and it will continue to grow high in the future. However, if the market conditions of the Beijing Stock Exchange are not good, there is also a possibility of breaking the issue price. That is to say, now that new stock issuance is market-oriented, there is basically no need to pay attention to new stock subscription. As the saying goes, if you buy something, you don’t sell something. The bosses and underwriters of listed companies are smart people.
