Forged aluminum alloy wheels are internationally competitive: The company's main business is the R&D, design, manufacture and sale of forged aluminum alloy wheels for automobiles. It is a high-tech enterprise that began using the forging process to produce automobile aluminum alloy wheels earlier in China, successfully breaking the monopoly of foreign brands on forged aluminum alloy wheels in China's commercial vehicle market. The company's main products are forged aluminum alloy wheels for automobiles, including commercial vehicle wheels and passenger car wheels. In addition to forged aluminum alloy wheels for automobiles, other products produced by the company include forged winches, wheel accessories, etc. Among them, forged winches are mainly used in warp knitting machines.
We have maintained long-term and stable cooperative relationships with many high-quality customers: after more than ten years of development, the company has become a professional manufacturer of forged aluminum alloy wheels for automobiles. The company exports products to countries and regions such as the United States, Australia, Canada, Japan, etc., and has maintained long-term stable cooperative relationships with many high-quality customers. The main customers of the company's commercial vehicle wheels include: WheelPros (US), FleetPride (US), Loves (US), Jost, Tyres4u Pty Ltd. (Australia), Kal Tire (Canada), Homet, Dongfeng Liuqi, Sinotruk, BYD, etc. The company's main customers for passenger car wheels include:
American Wheels (US), Forgiato (US), Cruzer Inc. (US), WheelPros (US), Wholesale Wheel & Tire LLC (US), S.M. Heights (Korea), J.T.
Morton (US), Rivian (US), Superior (US), Lucid (US), Hangzhou Mika, Jiangsu Guangwei, Ningbo Liberty, etc.
Valuation analysis: 6-12 month fair value range of 13.13-1,447 billion yuan: Under the relative valuation method: 1) Comparable company average market value We select the average market value for the year from March 6, 2023 to March 6, 2024. 2) The price-earnings ratio and non-price-earnings ratio of the comparable company Zhongyueling Co., Ltd. deviate greatly from the average value of comparable companies, so they need to be removed. Furthermore, Dickens' price-earnings ratio and price-earnings ratio after deducting non-price-earnings ratios in 2022 are negative values, which also need to be removed. 3) There is a big difference between today's deducted non-price-earnings ratio and price-earnings ratio in 2022. There was a high non-recurring profit and loss in the company's net profit due to the 2022 net profit, so today's Fikaida's 2022 deducted non-price-earnings ratio was excluded. After excluding Yueling Co., Ltd. and today's Fei Kaida's 2022 deducted non-price-earnings ratio and other negative values, the average value of the comparable company's 2022 deducted non-price-earnings ratio was 25.7 times. We also referred to the latest rolling price-earnings ratio of the C36 automobile manufacturing industry in the CCCC industry classification, which was 20.85 times higher than the industry's latest rolling price-earnings ratio. For careful consideration, we selected the industry's latest rolling price-earnings ratio as Hongxin Technology's PE valuation multiplier, combined with the company's 2022 net profit deducted to the mother of 63 million yuan, corresponding to Hongxin The reasonable market value of technology under the Relative Valuation Act is 1,313 billion yuan. Under the absolute valuation method, the company estimates that the company's 6-12 month fair value range is 953-1,447 million yuan. We take the reference market value of the relative valuation method as the lower limit, and the upper limit of the fair value range of the absolute valuation method as the upper limit. Combining the two valuation methods, we expect the overall forward fair value range of the company 6-12 months after issuance to be 1,313-1,447 billion yuan. The price-earnings ratio of the corresponding company's net profit deducted from mother in 2022 was 20.84 times -22.97 times. According to Hongxin Technology's prospectus, the company's total share capital is expected to be no more than 148 million shares after listing. Assuming that the total share capital after listing is 148 million shares, the company's fair share price range is 8.87-9.78 yuan.
Risk warning: Risk of failure to establish profit forecasting assumptions and valuation conclusions; risk of failure in new product development; risk of technical route and iteration; risk of loss of technical personnel; risk of core technology leakage; risk of declining revenue for major customer Haumet; major customer American