Research summary:
We participated in the reverse roadshow organized by the company on June 21-22 and visited the company's production center in Xiangshan, Ningbo, the mold factory, and the company's Hualot factory in Hangzhou Bay. The production headquarters is an injection molding mass production plant, and Hualot is a Sino-German joint venture plant that produces high-end automotive interior fabrics and exterior fabrics.
Adhere to the development direction of plastic instead of steel weight reduction:
The company believes that since the energy consumption and battery life requirements of automobiles are getting higher and higher, weight reduction is bound to be the future development direction. The company has always insisted on plastic instead of steel. Its products include bottom guard plates and front end frames, etc. It has now become the first supplier of many car companies' front-end frames to plastic instead of steel. This year, relying on the company's mature experience in FRP molds at FBZ in Germany, a new SMC process spoiler product was developed to replace ordinary ABS/PC materials to achieve higher strength. It is the only supplier successfully developed and ordered in China, and it is expected that the market will continue to expand in the future.
The launch of the new plant frees up new production capacity:
The company currently has 21 production bases, which are located near partner OEMs. As OEMs continue to launch new models and increase company orders, the company continues to expand production capacity. In the first half of this year, the second phase of the Tianjin plant was put into operation, and the second paint line was put into trial operation, mainly supplying new Audi models (new Q3) and other customers in the Tianjin-Beijing-Hebei region. This year, the company will also build a new paint line in Changchun to supply bumpers for FAW Volkswagen and others. At the same time, the company continues to improve the level of automation in an attempt to continuously reduce manufacturing costs and increase the gross margin level.
Actively develop new energy customers:
The company has solid and stable relationships with large customers and has maintained cooperative relationships with many customers for more than 10 years, including FAW-Volkswagen, Shanghai GM, Changan Ford, etc. The company and OEMs participate in process development and have a close cooperative relationship. At the same time, the company is actively developing new energy customers and reaching strategic cooperation with brands such as WM Motor and Aiche Yiwei to customize and develop new products for new energy customers, including charging port covers, electric tailgates, and battery pack cases.
High value-added fabrics may usher in opportunities for localization:
The company entered into a three-party joint venture with Germany's Roekona and Zoeppritex to establish the country's first domestic special production line for sunshade fabrics. It designs and develops the weaving, dyeing, post-finishing and composite of high-end fabric fabrics to supply sunroof assemblers of first-tier automobile manufacturers (such as Mercedes-Benz, Audi, etc.) at home and abroad. The profit margin of new products is expected to reach more than 30%. In the future, in the high-value-added fabric sector, the company is expected to usher in localization opportunities with its technological advantages.
Summarizing recommendations:
The company adheres to the lightweight development direction of plastic instead of steel vehicles, and has maintained solid and stable cooperative relationships with automakers such as FAW and Volkswagen for many years. At the same time, the company is also actively developing new energy customers and designing and developing new processes and materials. The company has more than RMB 10 billion in secure orders in hand, which will contribute to the steady development of future business.