Hwaway Technology(001380)2023-09-18 00:40Group 1: Company Growth and Market Position - The company's growth is primarily driven by the rapid rise of domestic brands, with increasing market share in the new energy vehicle sector leading to a rise in orders [1] - Key clients include major manufacturers such as BYD, Geely, and Great Wall, as well as shock absorber manufacturers like FAW Dongji and Nanyang Xijian [1] - The market share for stabilizer bars is approximately 7% as of the first half of the year, with expectations to reach levels similar to that of suspension springs as production capacity is released [2] Group 2: Product Development and Production - The company has invested significantly in R&D for stabilizer bars, which has led to increased production starting this year [2] - The production capacity for suspension springs and brake springs in 2022 was 24.7 million units, with future plans for 5 million units in Henan and 5.5 million units in the main facility [3] - Stabilizer bar unit prices for traditional fuel vehicles range from 120 to 160 RMB, with a 20%-30% increase for new energy vehicles due to higher overall weight [2] Group 3: Financial Performance and Profitability - The gross margin for stabilizer bars is currently low due to high R&D costs, but it is expected to rise as production scales up [3] - The gross margin for stabilizer bars is anticipated to be similar to that of springs in the future [3] - The company reported a foreign exchange gain of 2.11 million RMB in the first half of the year, with minimal impact from the depreciation of the RMB in Q3 [4]