Recently, the information disclosed by the Shanghai Stock Exchange shows that Shanghai Automotive Air Conditioning Parts Co., Ltd. (hereinafter referred to as "Shanghai Auto Parts") will be reviewed by the Listing Committee on July 21. According to Beido Finance, Shanghai Auto Parts has updated the prospectus (draft for the meeting) on July 13.
In this sprint IPO, Shanghai Auto Parts plans to raise 783 million yuan, which will be used for the construction of Zhejiang Hailit Automobile Air Conditioning Parts Co., Ltd. with an annual output of 19.1 million automotive air conditioning pipes, an annual output of 4.9 million fuel distribution pipes and other auto parts, R&D center construction, supplementary working capital, and repayment of bank loans.
Among them, Zhejiang Hailite Automobile Air-Conditioning Parts Co., Ltd. is a wholly-owned subsidiary of Shanghai Auto Parts, whose main business is the production and sales of auto air-conditioning parts and other auto parts. Tianyancha information shows that the former was established in January 2018 with a registered capital of 100 million yuan and its legal representative is Wang Youzhao.
Before this listing, Shanghai Automobile Air Conditioner Factory Co., Ltd. (hereinafter referred to as "Shanghai Automobile Factory") held 44.24% of the shares of Shanghai Auto Parts and was its controlling shareholder; the People's Government of Beicai Town indirectly controlled 44.24% of the shares of Shanghai Auto Parts through the Steam Air Factory and was the actual controller of the company.
1. Thirty years of senior enterprise, long-term cooperation with well-known car companies
According to the prospectus, Shanghai Auto Parts is a manufacturer mainly engaged in the R&D, production and sales of auto parts such as automotive air-conditioning pipelines and fuel distribution pipes.
As one of the earliest domestic enterprises engaged in the research and development of automotive air-conditioning pipelines and other components, after more than 30 years of accumulation of product development and quality control capabilities, Shanghai Auto Parts has formed a product system that focuses on automotive air-conditioning pipelines and supplemented by fuel distribution pipes, and has successively introduced automotive parts such as transmission cooling oil pipes to the market.
At present, Shanghai Auto Parts has established stable cooperative relations with a number of OEMs including Volkswagen AG, FAW-Volkswagen, SAIC, Jaguar Land Rover, and first-tier suppliers of auto parts such as United Electronics and BorgWarner (Shanghai). The products cover Volkswagen Tiguan, Buick, Audi and other best-selling models.
2. Revenue is stable and improving, with an increase of over 30% in the first quarter of 2023
The performance of Shanghai Auto Parts is very good. In 2020, 2021, and 2022 (the "reporting period"), the company's operating income will be 1.188 billion yuan, 1.391 billion yuan, and 1.636 billion yuan, respectively, showing steady growth.
In terms of profitability, Shanghai Auto Parts recorded a net profit of 127 million yuan attributable to its parent company in 2020. In 2021, due to the rise in the price of upstream materials and the impact of factors such as the provision for impairment of Shanghai Rilun's long-term equity investment, the company's net profit attributable to the parent company will decline to 95.2901 million yuan, and it will rise again to 129 million yuan in 2022.
After entering 2023, thanks to the increase in sales revenue from new customers, the operating conditions of Shanghai Auto Parts are stable and improving.
Specifically, the revenue of Shanghai Auto Parts in the first quarter of 2023 was 389 million yuan, a year-on-year increase of 32.04%. In addition, the company recorded a net profit attributable to the parent company and a net profit after deducting non-existing expenses of 39.4073 million yuan and 38.9581 million yuan, both of which increased by more than 50% compared with the same period in 2022.
At the same time, Shanghai Auto Parts is expected to achieve revenue of 750 million to 850 million yuan in the first half of 2023, a year-on-year increase of 9.53% to 24.14%; the net profit attributable to the parent is about 70 million to 85 million yuan, a year-on-year increase of 48.97% to 80.89%; the net profit after deducting non-existing expenses is about 69 million to 84.5 million yuan, a year-on-year increase of 52.92% to 87.27%.
3. Relying on automobile air-conditioning pipeline products, the gross profit margin fluctuates
Bedouin Finance found that automotive air-conditioning pipelines are not only the "star product" of Shanghai Auto Parts, but also the "important lifeblood" related to the company's performance changes.
During the reporting period, the operating income of Shanghai Auto Parts from automobile air-conditioning pipelines was 856 million yuan, 985 million yuan, and 1.202 billion yuan, accounting for about 75% of the company's main business income, which is an important growth point that drives its revenue upward.
During the reporting period, the gross profit margins of the main business of Shanghai Auto Parts were 21.64%, 16.51% and 18.61% respectively. Among them, more than 80% of the gross profit is contributed by the automobile air-conditioning pipeline, and the corresponding gross profit is 205 million yuan, 184 million yuan and 241 million yuan respectively, accounting for 83.08%, 84.02% and 81.19% respectively.
In addition, the fluctuation of the gross profit rate of Shanghai Auto Parts' main business is also closely related to the change of the gross profit rate of the company's automotive air-conditioning pipeline products.
Due to the increase in the purchase unit price of raw materials, sensors and other electronic components in 2021, the average sales cost of automotive air-conditioning pipeline products will increase from 44.08 yuan per unit to 50.15 yuan per unit. Although Shanghai Auto Parts has also raised the unit price of this product, it cannot fully compensate for the impact of rising costs on its gross profit margin.
Therefore, the gross profit margin of Shanghai Auto Parts' automotive air-conditioning pipeline products in 2021 will be 18.66%, which is 5.3 percentage points lower than that in 2020. During the same period, the gross profit margin of the main business of Shanghai Auto Parts also dropped from 21.64% in 2020 to 16.51% in 2021.
In 2022, thanks to the higher gross profit margin of products sold by Shanghai Automobile to its new customer "Customer 1", although the cost of sales continues to increase, the gross profit margin of the company's automotive air-conditioning pipeline products will rise to 20.02%; the gross profit margin of the main business will increase to 18.61%, an increase of 2.1 percentage points.
Four. Conclusion
At present, Shanghai's auto parts are mainly supplied to traditional fuel vehicles, but benefiting from the impact of carbon neutrality and clean energy related policies, the global new energy vehicle industry is developing rapidly, and traditional fuel vehicles are facing the pressure and challenge of being squeezed out of the market by new energy vehicles.
But Shanghai Auto Parts did not wait and see what happened, but chose to overweight. During the reporting period, its sales revenue from new energy vehicle air-conditioning pipelines increased from 42.0379 million yuan in 2020 to 304 million yuan in 2022, with a compound annual growth rate of 168.78%, and its proportion jumped from 4.91% in 2020 to 25.26% in 2022.
It should be pointed out that the automotive air-conditioning pipelines produced by Shanghai Auto Parts can be used in both traditional fuel vehicles and new energy vehicles. In other words, on the road to adapt to the development of new energy vehicles, Shanghai Auto Parts' existing automotive air-conditioning pipeline products have certain feasibility.
In the future, how will Shanghai Auto Parts "make another breakthrough" in the field of new energy vehicles, and will the conference go smoothly? The author will continue to pay attention.