CHANGAN AUTOMOBILE-B(SZ:000625) Di Yi Cai Jing·2025-08-11 10:28Core Viewpoint - Daming Electronics Co., Ltd. is preparing for an IPO on the Shanghai Stock Exchange, with significant revenue dependence on Changan Automobile, raising concerns about customer concentration risk and the timeliness of information disclosure in its prospectus [1][2][12]. Group 1: Company Overview - Daming Electronics specializes in the research, production, and sales of automotive body electronic control systems, with key products including driving assistance systems, intelligent optical systems, cockpit control systems, window control systems, and seat adjustment systems [2]. - The company has established long-term partnerships with major domestic automakers such as Changan Automobile, SAIC Group, FAW Group, BYD, and Geely, as well as foreign brands like Ford and Toyota [2][3]. Group 2: Financial Performance - Daming Electronics reported revenues of 1.713 billion yuan, 2.147 billion yuan, and 2.727 billion yuan for the years 2022, 2023, and 2024, respectively, with net profits of 143 million yuan, 196 million yuan, and 279 million yuan after excluding non-recurring gains and losses [2]. - In 2024, revenue from Changan Automobile is expected to exceed 650 million yuan, accounting for over 24% of total revenue, down from over 30% in 2023, indicating a potential risk of customer concentration [2]. Group 3: Margin Analysis - The overall gross margin of Daming Electronics has declined from 23.74% in 2021 to 20.65% in 2023, attributed to factors such as price reductions imposed by downstream customers, changes in product sales structure, and rising material and labor costs [5][6]. - The company's main business gross margins for 2022, 2023, and 2024 are reported as 20.57%, 20.62%, and 21.08%, respectively, showing slight recovery in 2024 [6][7]. Group 4: Management and Governance - The vice chairman of Daming Electronics, Zhang Xiaoming, has extensive experience within the Changan Automobile system, which may enhance the company's understanding of Changan's needs but also raises concerns about the fairness of transactions between the two entities [4][11]. Group 5: Industry Context - The automotive parts manufacturing industry in China is entering a mature phase, with increasing bargaining power for downstream manufacturers, leading to a common practice of annual price reductions [5][11]. - The global automotive parts supply chain is dominated by suppliers from Japan, the United States, and Germany, as highlighted in the 2024 Automotive News Global Top 100 Suppliers list [11][12].