China's new shares in vehicle parts rose for second place, Huajun Motors will issue shares

This year, the performance of new stocks is very satisfactory. New stocks that have fallen below the offer price are commonplace. However, there are always exceptions. The cumulative increase in the number of Chinese vehicle parts and components listed on November 23 (01269) has exceeded 10% since the listing so far, and the top ten new stocks have risen this year. Ranked third in the list. Next week, there will be another new shares of Huazhong Automotive (06830), which is engaged in auto parts manufacturing business, to conduct public offerings.

Huazhong will publicly offer shares from the 30th to the 5th of next month. It will be listed on January 12, 2012 and is expected to become the first new stock to be listed in 2012. The company plans to sell 200 million shares with an IPO price ranging from 1.2 to 1.5 yuan and raises up to 300 million yuan. Part of the investment is in Ningbo factory, and the sponsor is Guotai Junan.

Most of Huazhong's customers are Sino-foreign joint-venture vehicle manufacturers Huazhong's products include various models of auto body parts, including internal and external structures and decorative parts (such as front and rear bumpers, front frame, instrument panel, ABCD column, air intake grille, and door trim panel. ) This segment accounted for 83.5% of its revenue last year, with the rest being air-conditioning, warm air and non-automotive products (the Group also produced steamboat engine roof canopy and office chair parts and other products), with over 95% of sales revenue coming from the Mainland. Customers include FAW-Volkswagen, Shanghai GM, Shanghai Volkswagen, Changan Ford Mazda, and Beijing Benz.

According to 2009 earnings, Huazhong is the third largest manufacturer of automotive plastic body parts in China. Headquartered in Ningbo, China has 11 factories throughout China. The production facilities are located in Ningbo, Changchun, Shanghai, Chongqing, Guangzhou and Chengdu. The total area is 335,000 square meters and the number of employees is about 2,300.

Its turnover increased from RMB 755 million in 2008 to RMB 1 billion last year, with a compound annual growth rate of approximately 15.5%; net profit increased from RMB 57.5 million in 2008 to RMB 105 million last year. The growth rate is about 35.7%. In the first half of this year, the turnover and net profit were 573 million yuan and 51 million yuan respectively.

Less than ten times of predicted PE for vehicle parts Compared with Huazhong, China's vehicle parts and components mainly produce automobile shock absorbers and automobile suspension systems, and the products are more specialized. According to the production volume of shock absorbers supplied to the domestic automobile manufacturing market in 2010, The group is the fourth largest shock absorber manufacturer and the largest independent shock absorber manufacturer in China. The Group designs and manufactures shock absorbers for the original equipment manufacturer market, and also manufactures and supplies shock absorbers for the automotive aftermarket. Customers include FAW-Volkswagen, Chery, Haima Motors, and JAC Motors. The largest customer is Chery. Last year, the Group produced approximately 5.1 million shock absorbers in China, which accounted for approximately 7.3% of the market.

The shock absorbers developed by the Group for high-speed railways have completed a total of approximately 400,000 km of railway tests on the relevant railways and have stable technical performance. Its turnover increased from 297 million yuan in 2008 to 543 million yuan last year. Net profit increased from 18.65 million yuan in 2008 to 37.53 million yuan last year. In the first five months of this year, the turnover and net profit were 286 million yuan and 38.17 million yuan respectively. Although its stock price has risen more than 50% from the offer price, this year's forecast price-earnings ratio is still less than 10 times.