Hwaway Technology(001380)2023-07-31 09:18Group 1: Company Strengths and Market Position - The company's advantage in stabilizer technology lies in its existing technical foundation and long-standing relationships with clients in the spring sales sector [1] - Stabilizer revenue is on an upward trend, with significant growth expected to continue [2] Group 2: Sales and Product Information - Stabilizers can be sold separately, but they are often bundled with suspension springs due to procurement preferences [2] - The unit value of traditional automotive suspension springs ranges from 130 to 200 RMB, while stabilizers are valued between 120 to 160 RMB, with a 20-30% increase in value for new energy vehicles [2] Group 3: Financial Performance and Margins - The main raw material, steel, saw a 27% increase in average procurement price in 2021, impacting the gross margin by 7 percentage points [2] - The company anticipates a higher gross margin this year compared to last year [3] Group 4: Production Capacity and Future Plans - Current production capacity is saturated, but future capacity releases are expected to meet market demand [3] - New projects are set to release additional capacity in late 2023 and throughout 2024, including 8 million high-performance springs and 900,000 new energy vehicle stabilizers [3] Group 5: Management and Operational Efficiency - The company has a well-defined management structure with clear roles for market, quality, and production oversight, ensuring efficient communication and response to unexpected events [5]