Di Yi Cai Jing·2025-07-15 09:09Core Viewpoint - The gross profit margin of Tianhai Electronics has significantly declined due to increased collaboration with major clients like Geely, rising raw material costs, and a competitive market environment [1][7]. Group 1: Financial Performance - Tianhai Electronics plans to list on the Shenzhen Stock Exchange, focusing on automotive wiring harnesses, connectors, and electronic components [1]. - The company's revenue for 2022, 2023, and 2024 is projected to be 8.215 billion, 11.549 billion, and 12.523 billion yuan respectively, with net profits of 402 million, 652 million, and 614 million yuan [2]. - The gross profit margin has decreased from 15.94% in 2022 to 14.59% in 2024, indicating a downward trend [5]. Group 2: Market Dynamics - The automotive wiring harness market in China is estimated to reach approximately 119.6 billion yuan in 2024, with Tianhai Electronics holding an 8.45% market share [4]. - The connector market is projected to be around 478 billion yuan in 2024, with Tianhai Electronics capturing a 3.52% share [4]. - The company faces challenges from intense competition and price wars among major automotive manufacturers, which have led to a "increment without profit" scenario [3]. Group 3: Client Relationships - Tianhai Electronics has established long-term partnerships with major automotive manufacturers, including Geely, Chery, SAIC, and others, which has increased its revenue from high-voltage wiring harnesses [7][9]. - The collaboration with Geely has directly impacted the gross profit margin of high-voltage wiring harnesses, as increased production has led to higher unit costs and lower average prices [10][11]. Group 4: Raw Material Costs - The prices of key raw materials, copper and aluminum, remain high, with copper around 80,000 yuan per ton and aluminum exceeding 20,000 yuan per ton [6]. - Rising raw material costs have contributed to the decline in gross profit margins for both high-voltage and low-voltage wiring harnesses [10].