Core Viewpoint - The company, Huaxin Jingke (603370.SH), emphasizes that precision stamping iron cores are its core products, which include various applications in the new energy vehicle sector and other industries [1] Product Overview - The main products of the company consist of precision stamping iron cores, specifically for new energy vehicle drive motors, micro-special motors, electrical equipment, ignition coils, and other types of iron cores [1] - Micro-special motor iron cores can be applied in aerospace and nuclear power fields, although the company has not yet entered the nuclear power industry [1]

Core Viewpoint - The company, Huaxin Precision Technology (603370.SH), emphasizes that precision stamping iron cores are its core products, which include various applications in the new energy vehicle sector and other industries [1] Group 1 - The main products of the company include iron cores for new energy vehicle drive motors, micro-special motors, electrical equipment, ignition coils, and other types of iron cores [1] - The micro-special motor iron cores can be applied in aerospace and nuclear power fields, although the company has not yet entered the nuclear power industry [1]

Core Viewpoint - Jiangyin Huaxin Precision Technology Co., Ltd. (Huaxin Precision) has successfully listed on the Shanghai Stock Exchange with an IPO price of 18.6 yuan per share, resulting in a market capitalization exceeding 13 billion yuan, marking a significant milestone for the company and reflecting the growth of the precision stamping core industry in Jiangyin, Wuxi [4][9]. Company Overview - Founded in 2002 by Guo Zhengping, Huaxin Precision has evolved from a small factory into a leading player in the precision stamping core industry, with a focus on electric equipment cores and micro-motor cores used in various applications such as air conditioners and electric tools [6][9]. - The company is family-run, with Guo Zhengping's daughters, Guo Yunrong and Guo Wanrong, taking on key roles in management, contributing to the company's strategic direction and growth [6][7][15]. Business Development - Huaxin Precision has made significant strides in the new energy sector, particularly in developing cores for electric vehicle drive motors, which are critical components of the "three electric systems" in electric vehicles [7][8]. - The company has established partnerships with major clients, including BYD and BMW, and has seen a compound annual growth rate of 17.72% in revenue from electric vehicle drive motor cores from 2022 to 2024 [13][14]. Financial Performance - The revenue from precision stamping cores constituted a significant portion of Huaxin Precision's income, with figures of 1.05 billion yuan, 1.008 billion yuan, and 1.246 billion yuan projected for 2022 to 2024, representing 98.84%, 94.87%, and 97.34% of total revenue respectively [12]. - Despite revenue growth, the company has faced challenges with profit margins, indicating a trend of "increasing revenue without increasing profit" [14]. Market Context - The IPO of Huaxin Precision is part of a broader trend in Wuxi, where over 160 companies have gone public, reflecting a robust industrial upgrade and the emergence of new industries in the region [4][18]. - Wuxi has seen a surge in IPO activity, with 25 companies currently in the pipeline, indicating a vibrant investment landscape and a strong focus on high-tech and new energy sectors [18][19].

Core Viewpoint - Jiangyin Huaxin Precision Technology Co., Ltd. (Huaxin Precision) successfully listed on the Shanghai Stock Exchange, marking a significant milestone in its development and reflecting the growing competitiveness of Chinese precision manufacturing in the global new energy industry chain [1][3]. Company Overview - Huaxin Precision has over 20 years of experience in the precision stamping field and is recognized as a national "specialized, refined, and innovative" small giant, being the only domestic supplier of drive motor iron cores for BMW and one of only two globally [3][4]. - The company has achieved over twofold revenue growth in its new energy drive motor business over three years, benefiting from the national "dual carbon" goals and policies supporting the new energy vehicle industry [3][4]. Business Development Stages - **Stage 1 (2002-2009)**: Established as Jiangyin Huaxin Electric Co., Ltd., focusing on electromagnetic stamping parts, primarily producing electrical equipment iron cores [4]. - **Stage 2 (2009-2018)**: Expanded product offerings to include automotive iron cores, achieving breakthroughs in new energy vehicle drive motor iron cores, and established a production management system aligned with international standards [5]. - **Stage 3 (2018-Present)**: Rapid growth in new energy vehicle drive motor iron cores, becoming a mainstream supplier and recognized by major automotive and electrical equipment manufacturers [6]. Financial Performance - From 2021 to 2024, revenue from new energy vehicle drive motor iron cores is projected to grow from 235 million yuan to 828 million yuan, with a compound annual growth rate (CAGR) of 52.1% [6][7]. - Overall revenue increased from 1.192 billion yuan in 2022 to 1.421 billion yuan in 2024, with a CAGR of 9.2%, while net profit rose from 114 million yuan to 150 million yuan, reflecting a CAGR of 14.7% [7]. Technological Advancements - The company has developed proprietary technologies such as "in-mold gluing" and has a production capacity for ultra-thin silicon steel, with an annual capacity of 60,200 tons for new energy vehicle drive motor iron cores [8]. - Huaxin Precision holds 80 authorized patents, including 18 invention patents, and has established a strong reputation in the industry [7][8]. IPO and Future Plans - The IPO aims to raise funds for expanding production capacity for new energy vehicle drive motor iron cores, developing a precision stamping and mold R&D center, and supplementing working capital [9][10]. - The company plans to invest 445 million yuan in expanding production capacity, targeting an annual output of 1 million high-end drive motor rotor iron cores [10]. - The global market for automotive drive motor iron cores is expected to reach $4.678 billion by 2030, with a CAGR of approximately 11.85% [9]. Global Expansion - Huaxin Precision has established subsidiaries in Singapore and Mexico, aiming to enhance its global supply chain integration and deepen cooperation with international clients like BMW and ZF [11].

Core Viewpoint - Jiangyin Huaxin Precision Technology Co., Ltd. (Huaxin Precision) officially listed on the Shanghai Stock Exchange on September 5, with an IPO price of 18.6 yuan per share, experiencing a surge of over 300%, resulting in a market capitalization exceeding 13 billion yuan [1] Company Overview - Founded in 2002 by Guo Zhengping, Huaxin Precision has evolved from a small factory into a leading player in the precision stamping core industry over the past two decades [2][3] - The company is headquartered in Jiangyin, Wuxi, which has produced over 160 listed companies, reflecting a significant industrial upgrade in the region [1][12] Leadership and Family Involvement - Guo Zhengping's two daughters, Guo Yunrong and Guo Wanrong, have taken on key roles in the company, contributing to its growth and strategic direction [2][3] - Guo Yunrong has held various positions since joining in 2011, while Guo Wanrong returned in 2015 after gaining international experience [3] Product and Market Focus - Huaxin Precision specializes in precision stamping cores, including those for new energy vehicle (NEV) drive motors, micro-special motors, electrical equipment, and ignition coil cores [6][8] - The company has established significant partnerships with major clients such as BYD, ZF, and BMW, with a focus on the NEV sector [4][8] Financial Performance - Revenue from precision stamping cores accounted for approximately 98.84%, 94.87%, and 97.34% of total revenue from 2022 to 2024, respectively [7] - The NEV drive motor core product is particularly crucial, with projected revenues of 5.97 billion yuan, 6.09 billion yuan, and 8.28 billion yuan from 2022 to 2024, reflecting a compound annual growth rate of 17.72% [8] - Despite revenue growth, the company has faced a "revenue without profit" situation, with net profits showing a decline in 2024 [8][9] Future Outlook - Huaxin Precision anticipates revenue growth of 13.74% to 25.71% in the first nine months of 2025, with net profit expected to increase by 16.03% to 41.81% [9] - The company acknowledges potential risks in expanding new business and customer acquisition, particularly in maintaining relationships with key clients like BMW [10] Industry Context - Wuxi has seen a surge in IPO activity, with 25 companies currently in the pipeline, indicating a robust industrial landscape and a growing number of high-tech enterprises [13][14] - The region is recognized for its significant contributions to the national economy, particularly in advanced manufacturing and technology sectors [12][14]

Core Viewpoint - Huaxin Jingke (603370.SH) has been listed on the Shanghai Stock Exchange, focusing on the research, production, and sales of precision stamping products, particularly precision stamping iron cores and related molds [1][4]. Company Overview - Huaxin Jingke specializes in precision stamping iron cores, which include various types such as those for electric vehicle drive motors, micro-special motors, electrical equipment, and ignition coils [6]. - The company supplies major automotive parts manufacturers, motor manufacturers, and electrical equipment manufacturers both domestically and internationally [6]. Financial Performance - The projected revenues for Huaxin Jingke from 2022 to 2024 are approximately 1.192 billion, 1.189 billion, and 1.421 billion yuan, with corresponding net profits of about 114 million, 156 million, and 150 million yuan [6]. - For the first half of 2025, the company achieved total revenue of 752 million yuan, representing a year-on-year growth of 19.40%, and a net profit of 98.34 million yuan, up 13.52% year-on-year [6]. Market Position - Huaxin Jingke ranks among the top three manufacturers in the global and Chinese automotive iron core market from 2021 to 2023 [6]. - The precision stamping iron core business consistently accounts for over 90% of the company's revenue, with electric vehicle drive motor iron cores making up more than 50% of this revenue [6]. Investment and Growth Strategy - The company plans to invest 4.45 billion yuan in expanding production capacity for electric vehicle drive motor iron cores, 670 million yuan in a precision stamping and mold R&D center, and 200 million yuan to supplement working capital [4][8]. - The expansion project aims to add an annual production capacity of 1 million sets of high-end drive motor rotor and stator iron cores, targeting the high-end market [7]. Client Base and Certifications - Huaxin Jingke has secured contracts with notable clients such as BYD, Huichuan Technology, Valeo, and BorgWarner for its electric vehicle drive motor iron cores [7]. - The company holds 80 authorized patents and has received certifications as a high-tech enterprise and a national-level specialized and innovative "little giant" enterprise [7]. Production Capacity Utilization - The capacity utilization rates for the company's electric vehicle drive motor iron cores were 84.98%, 48.71%, and 60.97% from 2022 to 2024, while the rates for micro-special motor iron cores were 43.4%, 41.43%, and 66.59% during the same period [8].

Core Viewpoint - The company Huaxin Jingke (603370.SH) is set to be publicly offered on the Shanghai Stock Exchange, focusing on the research, production, and sales of precision stamping products, particularly precision stamping iron cores and related molds [1][4]. Group 1: Company Overview - Huaxin Jingke specializes in precision stamping iron cores, which include various types such as those for electric vehicle drive motors, micro-special motors, electrical equipment, and ignition coils [5]. - The company supplies its products to numerous large automotive parts manufacturers, motor manufacturers, and complete vehicle manufacturers both domestically and internationally [5]. - As of June 30, 2025, Huaxin Jingke holds a total of 80 authorized invention and utility model patents and has been recognized as a high-tech enterprise [6]. Group 2: Financial Performance - The projected revenues for Huaxin Jingke from 2022 to 2024 are approximately 1.192 billion, 1.189 billion, and 1.421 billion yuan, with corresponding net profits of about 114 million, 156 million, and 150 million yuan [5]. - The company reported a total revenue of 752 million yuan in the first half of 2025, reflecting a year-on-year growth of 19.40%, with a net profit of approximately 98.34 million yuan, up 13.52% [5]. Group 3: Market Position and Capacity - Huaxin Jingke's precision stamping iron core business consistently accounts for over 90% of its revenue, with electric vehicle drive motor iron cores representing more than 50% of total revenue [5]. - The company ranks among the top three in sales within the global and Chinese automotive iron core sectors from 2021 to 2023 [5]. - The capacity utilization rates for the company's electric vehicle drive motor iron cores were 84.98%, 48.71%, and 60.97% for the years 2022 to 2024, respectively [7]. Group 4: Fundraising and Investment Plans - The company plans to use the raised funds primarily for the expansion of its electric vehicle drive motor iron core production, with an investment of 4.45 billion yuan, which constitutes 62.44% of the total fundraising [4]. - Other allocations include 670 million yuan for the precision stamping and mold research center (9.47%) and 200 million yuan for working capital (28.09%) [4]. - The company aims to add an annual production capacity of 1 million sets of high-end drive motor rotor and stator iron cores, targeting the high-end market [6].

Core Viewpoint - Huaxin Precision Technology (603370.SH) has initiated its IPO with an issue price of 18.6 yuan per share and a price-to-earnings ratio of 21.68 times, focusing on the research, production, and sales of precision stamping products, particularly precision stamping cores for various applications, including electric vehicles [1][2]. Company Overview - Huaxin Precision Technology specializes in precision stamping products, with its main offerings being various types of precision stamping cores, including those for new energy vehicle drive motors, micro motors, electrical equipment, and ignition coils [1]. - The company has established strong partnerships with major automotive and electrical equipment manufacturers, including Valeo, Bosch Group, and BYD, among others [1][2]. Financial Performance - The company reported revenues of approximately 1.192 billion yuan, 1.189 billion yuan, and 1.421 billion yuan for the years 2022, 2023, and 2024, respectively, with net profits of about 114 million yuan, 156 million yuan, and 150 million yuan during the same periods [4]. - For the fiscal year ending 2024, total assets are projected to reach approximately 1.837 billion yuan, with equity attributable to shareholders expected to be around 1.040 billion yuan [5]. Market Position - Huaxin Precision Technology ranks among the top five domestic manufacturers in the precision stamping core market in both global and Chinese contexts, with a significant market share [3]. - The company is recognized as one of the two global suppliers of cores for BMW's fifth-generation electric vehicle drive motors, contributing significantly to its revenue [2]. Future Projections - The company anticipates a growth in revenue and net profit for the first half of 2025, with expected revenues ranging from approximately 710 million to 785 million yuan, reflecting an increase of 12.84% to 24.71% compared to the first half of 2024 [7].

Investment Rating - The report assigns a rating of "Neutral" to the company based on its AHP score of 1.96, which places it in the 26.5% percentile of the non-Science and Technology Innovation Board AHP model [4][9]. Core Insights - The company, Huaxin Precision Technology, is a leading supplier of electric motor cores for new energy vehicles, ranking second among domestic companies with a market share of 8.12% in 2024. The company has shown stable financial performance with a revenue CAGR of 9.17% and a net profit CAGR of 16.04% from 2022 to 2024 [4][10]. - Huaxin has developed advanced adhesive technology, becoming the only Chinese supplier for BMW, which has significantly increased its profit margins. The gross margin for its high-priced new products rose from 16.15% in 2022 to 21.83% in 2023 [4][15]. - The precision stamping industry is experiencing significant differentiation between high-end and low-end markets, with intense competition in the low-end sector. Huaxin's focus on high-end products positions it well to capture market share as demand for advanced technologies grows [4][18]. Summary by Sections AHP Score and Expected Allocation Ratio - Huaxin's AHP score, excluding liquidity premium factors, is 1.96, indicating a mid-to-upper tier position in the market. The expected allocation ratios for offline investors are 0.0124% for Class A and 0.0107% for Class B under neutral conditions [4][9]. Company Fundamentals and Highlights - Huaxin ranks second in domestic sales of new energy vehicle motor cores, with a market share of 8.12% in 2024. The company has maintained a strong financial trajectory with a revenue CAGR of 9.17% and a net profit CAGR of 16.04% from 2022 to 2024 [4][10][12]. - The company has successfully implemented adhesive technology, becoming the sole Chinese supplier for BMW, which has led to increased sales and profit margins [4][14][15]. - The industry is shifting from rapid growth to high-quality competition, with Huaxin positioned to respond quickly to emerging demands in the high-end market [4][18]. Comparable Company Financial Metrics - Huaxin's revenue from 2022 to 2024 was 11.92 billion, 11.89 billion, and 14.21 billion respectively, with a CAGR of 9.17%. Its net profit for the same period was 1.14 billion, 1.56 billion, and 1.53 billion, with a CAGR of 16.04%, outperforming comparable companies [20][21]. - The company's gross margin for 2022-2024 was 16.89%, 21.86%, and 20.43%, significantly higher than the average of comparable companies, driven by high-value product sales [24][25]. - Huaxin's cash collection ratios were 0.72, 1.05, and 0.73 from 2022 to 2024, indicating strong cash flow management compared to peers [26][31]. Fundraising Projects and Development Vision - The company plans to raise funds for expanding its production capacity for new energy vehicle motor cores, developing a precision stamping and mold research center, and supplementing working capital. The expansion project aims to add an annual production capacity of approximately 30,000 tons for high-end motor cores [36][37].