Core Viewpoint - The article discusses the growth logic and investment value of Suzhou Huichuan United Power, which is expected to be the largest IPO project in the A-share new energy vehicle supply chain this year [3]. Company Overview - United Power, a subsidiary of Huichuan Technology, focuses on modular solutions and components for electric drive systems and power systems, serving as a core supplier for domestic new energy vehicle manufacturers [4]. - The company is recognized as a sole supplier for Li Auto and one of the electric drive suppliers for Xiaomi's vehicles, benefiting from the rapid growth of these companies [4]. IPO Progress - United Power completed the registration with the CSRC in just seven and a half months, indicating a quick IPO process despite minor setbacks [4]. - The company aims to raise 4.86 billion yuan, with a valuation expected between 20 billion and 50 billion yuan [4]. Financial Performance - Revenue projections for United Power from 2022 to 2024 are approximately 5 billion yuan, 9.3 billion yuan, and 16.1 billion yuan, with gross margins of 13%, 15%, and 16% respectively [7]. - The net profit margin is expected to improve from -4% in 2022 to 6% in 2024, driven by controlled sales and R&D expenses [7]. Customer Base and Market Position - The proportion of revenue from the top five customers decreased from 76% in 2023 to 68% in 2024, indicating diversification in customer relationships [9]. - As of May 2025, the company had an order backlog of nearly 7.9 billion yuan, ensuring continued high growth and stable profit structure [9]. Capacity and Investment Needs - United Power's production capacity utilization rates for electric drive systems and power systems are 94% and 74% respectively, suggesting potential capacity expansion issues [14]. - The company plans to use over half of the IPO proceeds for capacity construction, with a projected revenue of approximately 37 billion yuan by 2029 if fully operational [15]. Market Share and Competitive Landscape - United Power's market share in electric motors and controllers exceeds 10%, ranking second in the independent third-party sector [16]. - The company is positioned to maintain growth in the medium to long term, supported by its industry status and business growth rate [16]. Industry Dynamics - The future of United Power's growth is closely tied to the ongoing price war in the new energy vehicle sector, which could either benefit or limit the company's expansion [18]. - If the price war continues, it may lead to structural adjustments in the industry, increasing reliance on third-party suppliers like United Power [19]. - Conversely, if the price war eases, major automakers may shift towards vertical integration, potentially limiting United Power's market opportunities [20]. Current Industry Challenges - The automotive industry's profit margins are under pressure, with the profit rate dropping to 4.3% in 2024, indicating ongoing challenges due to the price war [21]. - The current market conditions may affect United Power's IPO timing and future growth prospects [21].