Market Overview - The automotive parts sector increased by 1.59% on August 5, with Huami New Materials leading the gains [1] - The Shanghai Composite Index closed at 3617.6, up 0.96%, while the Shenzhen Component Index closed at 11106.96, up 0.59% [1] Top Gainers in Automotive Parts Sector - Huami New Materials (Code: 836247) closed at 23.73, up 12.41% with a trading volume of 192,200 shares and a transaction value of 450 million yuan [1] - Jiezhong Technology (Code: 873690) closed at 28.89, up 11.12% with a trading volume of 97,300 shares and a transaction value of 292 million yuan [1] - Shenda Co., Ltd. (Code: 600626) closed at 4.46, up 10.12% with a trading volume of 290,600 shares and a transaction value of 127 million yuan [1] Fund Flow Analysis - The automotive parts sector saw a net inflow of 884 million yuan from institutional investors, while retail investors experienced a net inflow of 28.08 million yuan [2][3] - Major stocks like Hunan Tianyan (Code: 600698) had a net inflow of 404 million yuan from institutional investors, but a net outflow of 210 million yuan from retail investors [3] Notable Decliners - Redik (Code: 300652) closed at 61.42, down 3.97% with a trading volume of 64,700 shares and a transaction value of 402 million yuan [2] - Fosa Technology (Code: 301529) closed at 68.88, down 2.03% with a trading volume of 61,600 shares and a transaction value of 428 million yuan [2]

| 代码 | 名称 | 收盘价 | 涨跌幅 | 成交量(手) | 成交额(元) | | | --- | --- | --- | --- | --- | --- | --- | | 836871 | 派特尔 | 18.03 | -4.50% | 3.47万 | 6270.12万 | | | 603922 | 全鸡顺 | 21.40 | -4.12% | 16.87万 | | 3.51 Z | | 605255 | 天普股份 | 24.92 | -3.04% | 5.27万 | | 1.31亿 | | 603121 | 华培动力 | 22.08 | -2.04% | 8.59万 | | 1.89亿 | | 832978 | 开特股份 | 22.96 | -1.03% | 1.70万 | 3892.44万 | | | 920106 | 林泰新材 | 95.18 | -0.94% | 6045.56 | 5769.16万 | | | 603409 | 汇通控股 | 36.26 | -0.93% | 3.27万 | | 1.18亿 | | 002537 | 海联金汇 | 9.34 | -0.85% | 44.59万 | ...

Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][5]. Core Views - The company focuses on the overseas automotive aftermarket shock absorber business, with revenue growth driven by capacity expansion. The company has developed comprehensive manufacturing and service capabilities for suspension strut assemblies and has strong vehicle matching capabilities [1]. - The company is expected to achieve significant revenue growth in 2024, with projected revenues of 1.64 billion yuan for shock absorbers, 425 million yuan for engine sealing parts, and 205 million yuan for rubber shock absorbers, reflecting year-on-year growth rates of 32.09%, 20.24%, and 50.4% respectively [1]. - The company has announced a fundraising plan to raise up to 450 million yuan, primarily for expanding domestic shock absorber production capacity [2]. - The company has established a smart manufacturing base in Thailand, which is expected to enhance its competitiveness and market share in the international market [2]. - The company has developed a lean information management system to adapt to the characteristics of the aftermarket, allowing for efficient production management and strong negotiation capabilities [2]. Financial Summary - The company’s projected revenues for 2024 are 2.30 billion yuan, with a year-on-year growth of 30.98%. The net profit attributable to the parent company is expected to be 71 million yuan, reflecting a growth of 21.39% [4][14]. - The forecasted net profits for 2025, 2026, and 2027 are 161 million yuan, 201 million yuan, and 256 million yuan respectively, with corresponding P/E ratios of 22.16, 17.77, and 13.95 [3][4]. - The company’s gross margin is projected to be 23.38% in 2024, with a slight decrease of 1.25 percentage points year-on-year [1]. Market Data - As of August 1, 2025, the company's closing price was 14.89 yuan, with a target price of 21 yuan for the next six months [5]. - The company has a total market capitalization of approximately 3.57 billion yuan [5]. Growth Indicators - The company is expected to maintain strong revenue growth rates, with projected growth rates of 31.0% in 2024, 24.3% in 2025, 18.0% in 2026, and 13.0% in 2027 [14]. - The net profit growth rates are forecasted at 21.4% for 2024, 125.7% for 2025, 24.8% for 2026, and 27.4% for 2027 [14].

Core Viewpoint - The company plans to issue A-shares to specific investors, aiming to raise up to 450 million yuan for its projects and working capital [1][2]. Group 1: Issuance Details - The issuance will target no more than 35 specific investors, including various financial institutions and qualified investors [1]. - The shares will be priced at no less than 80% of the average trading price over the 20 trading days prior to the pricing date [1]. - The total number of shares issued will not exceed 30% of the company's total shares before the issuance, amounting to a maximum of 72,009,980 shares [2]. Group 2: Fund Allocation - The total investment for the Zhengyu Intelligent Manufacturing Park (Phase II) is 430.93 million yuan, with 360 million yuan planned to be raised from this issuance [3]. - An additional 90 million yuan is allocated for supplementing working capital, bringing the total planned fundraising to 450 million yuan [3]. Group 3: Control and Ownership - As of June 30, 2025, the actual controllers of the company, the Zheng brothers, hold 145.76 million shares, representing 60.73% of the total shares [3]. - Post-issuance, their control will decrease to 46.71%, but they will remain the actual controllers of the company [3]. Group 4: Previous Issuance Context - The company previously announced the termination of a simpler issuance process for 2024 due to non-compliance of the hired securities service institution [4]. - The earlier plan aimed to raise up to 250 million yuan for the Zhengyu Intelligent Manufacturing Park project [4]. Group 5: Financial Performance - The company anticipates a significant increase in net profit for the first half of 2025, projecting approximately 118.36 million yuan, a 420.05% increase year-on-year [6]. - The expected net profit after excluding non-recurring gains and losses is around 68.69 million yuan, reflecting a 268.62% increase compared to the previous year [6].

Core Viewpoint - Zhengyu Industrial is accelerating its expansion by issuing new shares to raise up to 450 million yuan, with funds primarily allocated for the construction of its Intelligent Manufacturing Park (Phase II) and to supplement working capital [2][3][4]. Fundraising and Investment - The company plans to raise a maximum of 450 million yuan, with 360 million yuan (80% of the total) earmarked for the Intelligent Manufacturing Park (Phase II) project, which has a total investment of approximately 431 million yuan [3][4]. - The project aims to produce various shock absorber products, including traditional and electric control intelligent shock absorbers, with a construction period of 24 months and a static investment recovery period of 8.13 years [3][4]. Financial Performance - Zhengyu Industrial is projected to achieve a net profit of 118 million yuan in the first half of 2025, representing a year-on-year increase of 420.05%, with a significant second-quarter net profit increase of over 11 times [7]. - The company reported a revenue of 2.303 billion yuan in 2024, a 30.98% increase from the previous year, with the shock absorber segment contributing 1.635 billion yuan, up 32.09% [6][7]. Market Position and Strategy - Zhengyu Industrial has established a dual capacity layout with domestic and overseas bases, enhancing its competitiveness and market share [4][5]. - The company has a comprehensive product matrix covering over 20,000 varieties of shock absorbers, catering to both passenger and commercial vehicles, with a strong focus on R&D, investing 269 million yuan from 2022 to 2024 [2][4][7]. Asset Growth - The total assets of Zhengyu Industrial increased from 1.804 billion yuan in 2020 to 3.494 billion yuan in 2024, marking a growth of 93.68% [8].

Core Viewpoint - Zhejiang Zhengyu Industrial Co., Ltd. has decided to cancel its supervisory board and amend its registered capital and articles of association, reflecting a shift in corporate governance structure and compliance with updated regulations [1][3]. Group 1: Cancellation of Supervisory Board - The company will no longer have a supervisory board or supervisors, with the powers previously held by the supervisory board now transferred to the audit committee of the board of directors [1][3]. - The relevant rules governing the supervisory board have been abolished, and provisions related to the supervisory board will no longer apply [1][3]. Group 2: Change in Registered Capital - The company has received approval from the China Securities Regulatory Commission for the issuance of 2.9 million convertible bonds, which can be converted into A-shares starting from July 7, 2020 [1][2]. - As of the last conversion date on June 18, 2025, a total of 289,495,000.00 yuan of convertible bonds have been converted into 31,226,743 shares, increasing the total share capital from 223,738,756 shares to 240,033,268 shares [2][3]. Group 3: Amendments to Articles of Association - The articles of association will be revised to reflect the cancellation of the supervisory board, changes in registered capital, and the addition of provisions regarding the responsibilities of controlling shareholders and actual controllers [3][4]. - Key amendments include the removal of supervisory board-related provisions, the establishment of a worker representative director on the board, and the clarification of the obligations of controlling shareholders [3][4][5].

Group 1 - The company is confirmed to meet the qualifications and conditions for issuing A-shares to specific targets in 2025 [1] - The proposal for the issuance of A-shares to specific targets in 2025 has been unanimously approved by the supervisory board, aligning with the company's long-term development plan and benefiting all shareholders [2] - The analysis report regarding the issuance of A-shares has been deemed sufficient and relevant, considering the company's industry, financial status, and funding needs [2][3] Group 2 - The feasibility analysis report for the use of funds raised from the issuance of A-shares has been approved, indicating compliance with national industrial policies and enhancing the company's competitive capabilities [2][3] - The company has provided an analysis of the impact on immediate returns due to the issuance of A-shares and proposed specific measures to mitigate this impact, with commitments from relevant parties [3] - The special report on the use of previously raised funds has been approved, confirming compliance with regulations and no violations in fund usage [4] Group 3 - The establishment of a special account for the funds raised from the issuance of A-shares has been approved, aimed at improving fund management and efficiency [4]

Group 1 - The company plans to raise a total of up to 450 million yuan for investment projects, with a total project investment of 520.93 million yuan [1] - The main project is the second phase of the Zhengyu Intelligent Manufacturing Park, focusing on shock absorber products, including traditional and electric control intelligent suspension shock absorbers [1][2] - The company aims to enhance production capacity to meet growing demand in both domestic and overseas automotive aftermarket sectors [2][4] Group 2 - The automotive shock absorber market is expected to grow due to increasing vehicle ownership and demand for high-quality automotive components [4][5] - The company has a strong R&D capability and has established a multi-level management system for product development, which supports the successful implementation of the investment project [6][12] - The project is expected to improve the company's financial structure and reduce financial costs by supplementing working capital with raised funds [9][10] Group 3 - The project has a static investment payback period of 8.13 years and an internal rate of return of 13.44%, indicating good economic benefits and financial feasibility [9] - The company has established long-term stable relationships with international automotive parts suppliers, which will help in absorbing the new production capacity [7][12] - The investment aligns with national industrial policies and the company's strategic development direction, enhancing its competitive advantage in the market [11][12]

Fundraising Overview - Zhejiang Zhengyu Industrial Co., Ltd. raised a total of RMB 290 million through the issuance of 2.9 million convertible bonds at a face value of RMB 100 each, with a net amount of RMB 285.58 million after deducting underwriting fees [1][2] - The funds were deposited in a special account and verified by Tianjian Accounting Firm [1] Fund Utilization - The total amount of funds used was RMB 287.83 million, which includes investments in the automotive suspension damping product project and working capital [1][5] - The actual investment in the automotive suspension damping product project was RMB 28.56 million, while the working capital project received the remaining funds [1][5] Financial Performance - The company reported a total return of RMB 223.68 million from idle funds, which includes interest from bank deposits and returns from low-risk financial products [2][3] - The automotive suspension damping product project achieved a projected annual net profit of RMB 37.62 million once fully operational, although market conditions have limited its performance [7] Idle Fund Management - The company has utilized idle funds for low-risk financial products, with a total of RMB 260 million invested in bank financial products from 2020 to 2021, yielding returns of RMB 1.46 million and RMB 2.17 million respectively [3][4] - Temporary working capital was supplemented using idle funds, with amounts of RMB 130 million, RMB 90 million, and RMB 37 million approved for use in different years, all of which were recovered within the stipulated time [3][4] Project Completion and Account Closure - As of December 31, 2024, all fundraising projects have been completed, and the special fundraising account has been closed with no remaining balance [2][5]

Core Viewpoint - Zhejiang Zhengyu Industrial Co., Ltd. has not faced any penalties from regulatory authorities in the last five years, but it has received warnings related to performance forecasts and short-term trading violations by a former executive [1][2][5]. Regulatory Actions and Rectification - In the last five years, the company has not been penalized by regulatory authorities or exchanges [1]. - The company received a verbal warning for inaccurate performance forecasts, where the actual net profit for 2020 was reported at 4.34 million yuan, significantly lower than the forecast range of 10.08 million to 24.96 million yuan, representing a decrease of 57% to 83% [1][2]. - The warning was issued to the company and its then-chairman, general manager, board secretary, financial officer, and an independent director for failing to fulfill their duties as per the stock listing rules [2]. - The company has taken corrective measures by enhancing training on stock listing rules and improving internal management to prevent similar issues in the future [2][5]. - A warning letter was issued to the former vice president, Li Zhenhui, for short-term trading violations involving his spouse's trading activities, which included buying 106,300 shares and selling 109,200 shares within a six-month period, constituting a violation of the Securities Law [3][4]. - The short-term trading profits of 23,347 yuan were returned to the company, and Li Zhenhui resigned from his position on May 25, 2020 [4][5]. - The company has communicated these issues to its major shareholders and has emphasized the importance of compliance with securities laws among its executives [5].