Core Viewpoint - Tianbo Intelligent Technology (Shandong) Co., Ltd. has received acceptance for its IPO on the Shanghai Stock Exchange, aiming to raise approximately 2.057 billion yuan for various projects related to automotive thermal management systems and components [1] Group 1: Company Overview - Tianbo Intelligent is a manufacturer of automotive thermal management system components and has expanded into automotive acoustic components [1] - The company's main products are primarily used in the automotive sector [1] Group 2: IPO Details - The company plans to raise around 2.057 billion yuan through its IPO [1] - After deducting issuance costs, the funds will be allocated to several projects, including the construction of intelligent thermal management components and systems, expansion and technical transformation of the automotive thermal management system and core component production base, the establishment of a research and development center, and the upgrade of the information center [1]

Group 1: Bond Information - The A+ - rated ShangSheng Convertible Bond (127088.SZ) has a bond balance of 468 million yuan, accounting for 89.99% of the total issuance, and a remaining term of 3.59 years. As of December 3rd, its closing price was 128.86 yuan, with a conversion premium rate of 36.11% and a YTM of -3.04% [1] Group 2: Underlying Stock Information - The underlying stock, ShangSheng Electronics (002810.SZ), is the largest automotive acoustic product supplier in China. Its in - vehicle speakers had a 15.24% global market share in 2024, and both domestic and global market shares have increased for three consecutive years. From 1Q to 3Q in 2025, its revenue was 2.135 billion yuan (yoy +7.06%), and the net profit attributable to the parent was 135 million yuan (yoy -28.83%). Its latest total market value is 4.488 billion yuan [3] Group 3: Key Highlights of ShangSheng Convertible Bond - The company has achieved full - stack self - research in the in - vehicle acoustic system and built a three - dimensional technology system of "self - developed chips + intelligent algorithms + vehicle - grade verification". In 2025, it launched the industry's first intelligent seat pure digital link panoramic sound field solution, and earlier achieved mass production of AVAS products [4] - The proportion of high - margin products is continuously increasing, and the profit structure is optimized. The product structure has shifted from single speakers to "speakers + amplifiers + AVAS", and the supporting value per vehicle is expected to continue to rise. In H1 2025, the gross profit margins of in - vehicle amplifiers and AVAS were 21.50% and 27.85% respectively, higher than the 19.39% of in - vehicle speakers [4] - The company has a well - developed global production capacity layout and its customers cover mainstream domestic and foreign automakers. It has production bases in China, Europe, and the Americas, and its overseas revenue in 2024 was 959 million yuan, accounting for 34.56% of the total revenue [5] - The performance and valuation of the underlying stock are at a low level, and the convertible bond's indicators are also attractive. The Hefei factory is in the early stage of operation, and the low capacity utilization rate has dragged down the company's performance. It is expected that the company's profit will recover quarter by quarter as capacity is released. The expected PE in 2025 is 20.6x, which is at a historically low level and lower than the average of the auto parts industry. The market price of ShangSheng Convertible Bond is lower than the market median, and the conversion premium rate is within a reasonable range [5] Group 4: Reasonable Valuation of ShangSheng Convertible Bond - Based on the Shanxi Securities convertible bond valuation model, if the stock price remains unchanged and without considering forced redemptions and downward revisions, the reasonable valuation of ShangSheng Convertible Bond is between 129 and 135 yuan [6]

Core Viewpoint - The company, 汇通控股, is actively expanding its product offerings in automotive styling components and acoustic products, with a focus on increasing per-vehicle value and responding to market demands for improved driving experiences [1][2][3]. Product Value and Revenue Growth - The per-vehicle value for styling components is approximately 1,300 RMB, while acoustic products can reach around 1,200 RMB, leading to a total value of about 2,500 RMB for interior and exterior trim [2]. - In 2024, the revenue from automotive acoustic products is projected to be 464.55 million RMB, reflecting a year-on-year growth of 126.73%, primarily driven by increased sales from production bases in Fuzhou and Dalian [2]. - The total market size for automotive acoustic products in China is estimated to be nearly 40 billion RMB, indicating significant growth potential in this segment [2][3]. Technological Advantages and Production Capacity - The company has developed automotive acoustic packaging products since 2006, leveraging advanced foreign technologies and establishing a competitive edge in the market [3]. - The company has new production lines in Wuhu and Anqing, with the potential to produce 700,000 sets of bumpers annually in Anqing and 400,000 sets in Wuhu once fully operational, contributing to an estimated revenue of about 2 billion RMB if all production bases operate at full capacity [4]. Market Challenges and Strategies - The automotive industry is facing intense competition, with major clients like Chery and BYD exerting pressure on suppliers to reduce costs, which may impact the company's gross margins [5]. - The company plans to mitigate the effects of price reductions by continuously acquiring new projects and expanding its product range, aiming for sustained revenue growth and improved net profit performance [6]. Financial Performance - In Q1 2025, the company reported a main revenue of 259 million RMB, a year-on-year increase of 32.54%, while net profit attributable to shareholders decreased by 19.65% to 29.06 million RMB [6]. - The company's debt ratio stands at 31.34%, with a gross margin of 23.27%, indicating a stable financial position despite the challenges faced [6].

Investment Rating - Maintain BUY with a target price of HK$58.78, reflecting a potential upside of 61.3% from the current price of HK$36.65 [3][12]. Core Insights - The company is expected to achieve revenue growth of 10-15% YoY in 2025, driven by multiple growth drivers across various segments including optics, precision mechanics, electromagnetic drive, and automotive acoustics [1][9]. - Key growth drivers for 2025 include upgrades in optics specifications, increased adoption of VC in high-end models, expansion in automotive acoustics, and advancements in MEMS microphones for AI smartphones [9]. - The company has a solid product roadmap and is expanding into strategic markets such as robotics and AI glasses, with plans to acquire a stake in a Chinese automotive microphone module company to enhance its offerings [9]. Revenue and Earnings Forecast - Revenue is projected to grow from RMB 20,419 million in FY23 to RMB 32,566 million in FY25, representing a YoY growth of 19.2% [2][11]. - Net profit is expected to increase significantly from RMB 740.4 million in FY23 to RMB 2,488.6 million in FY25, with a YoY growth of 38.5% [2][11]. - The company’s EPS is forecasted to rise from RMB 0.63 in FY23 to RMB 2.12 in FY25, indicating a growth of 38.5% [2][11]. Segment Performance - The revenue breakdown indicates that acoustics will contribute RMB 9,466 million in FY25, while optics is expected to generate RMB 5,672 million [10]. - The gross profit margin is anticipated to improve from 16.9% in FY23 to 23.1% in FY25, reflecting operational efficiency and product mix enhancement [11][18]. Valuation Metrics - The stock is currently trading at a P/E ratio of 15.8x for FY25, which is attractive compared to the expected EPS growth of 39% [12][18]. - The target price is based on a sum-of-the-parts (SOTP) valuation methodology, assigning different P/E multiples to various business segments [12][13].