浙江仙通20241031

Key Points Company Overview 1. Industry and Company: Zhejiang Xiantong, a manufacturer of sealing strips, listed on the Shanghai Stock Exchange in 2016. 2. Establishment and History: Founded in 1994, specializing in the production of sealing strips for 30 years. 3. Ownership and Recognition: Acquired by the Taipei City Government in 2022, recognized as a "Hiddent Champion" and a "Patent Privileged Enterprise" in Zhejiang Province. 4. Product Description: Sealing strips are essential components for vibration reduction, water resistance, noise insulation, and comfort enhancement, serving both aesthetic and functional purposes. 5. Market Application: Primarily used in four doors, two hoods, front and rear windshields, and sunroofs in the automotive industry. Financial Performance 1. Revenue Growth: Achieved revenue of 8.42 billion yuan in the first three quarters of the year, a year-on-year increase of 14.61%. 2. Profit Growth: Net profit increased by 33.24% year-on-year, with a significant growth rate of nearly 70% in the first half of the year. 3. Reason for Slower Growth in the Second Half: Due to changes in regulations by car manufacturers and increased expenses related to the new project development. New Project Development 1. R&D Expenditure: Increased due to the expansion of new project development, with the total number of projects reaching about 80% of the full year in 2022. 2. Key Projects: Collaborations with Geely, Chongqing Changan, Shanghai Auto, and Volkswagen, focusing on new energy vehicles and high-end models. Future Outlook 1. Revenue Growth: Expected to continue growing due to the acceleration of domestic substitution, explosive growth in profits from joint-venture customers, and the expansion of high-margin product orders from leading new energy vehicle customers. 2. Production Capacity: Upgrading production lines and introducing advanced equipment to achieve a 2.5 billion yuan advanced production capacity. 3. Capital Support: Strong support from the controlling shareholder, Taizhou Kejiao Group, and potential acquisition of industry resources. 4. New Energy Vehicle Market: Significant increase in orders for frameless sealing strips, with 98% of orders coming from new energy vehicles, particularly blue-energy vehicles, accounting for over 70% of revenue. Competitive Advantages 1. Customer Resources: Strong customer relationships and partnerships. 2. Cost Control: Excellent cost control and cost-effectiveness. 3. Mold Development: Strong mold development capabilities. 4. Government Resources: Leveraging government resources for industry development.