Hwaway Technology(SZ:001380)2023-05-23 15:54Group 1: Competitive Positioning - The company has a cost advantage and price advantage due to its experience in heat treatment technology, which is developed in collaboration with steel mills [1] - Competitors like MW are contracting, while companies like Mubea and Thyssenkrupp are expanding in the Chinese market, indicating a shift towards domestic brands [2] Group 2: Product Value and Market Share - The unit value of suspension springs is approximately 130-200 RMB, while stabilizers range from 120-160 RMB; the value of new energy vehicles is 20-30% higher than traditional vehicles due to increased weight requiring higher strength springs [2] - The company holds about 70% market share in springs for BYD, with stabilizers beginning mass production [2] Group 3: Financial Performance and Industry Trends - The company's gross profit margin was low in 2021 primarily due to rising material costs, a trend observed across the industry [2] - The company achieved a capacity utilization rate of 93% last year despite pandemic impacts, with optimistic revenue projections for the current year [3] Group 4: Future Growth and Investments - The company plans to release part of its new capacity for high-performance springs and surface treatment technology by Q4 2023, with full capacity expected by Q3 or Q4 2024 [2] - The new intelligent production line for high-precision energy vehicle suspension springs is projected to partially release capacity in Q1 2024, with full completion by Q1 2025 [2] Group 5: Strategic Development - The company aims to replace foreign competitors not only through materials but also by upgrading management and technology [3] - The company is currently in contact with Tesla but has not established a partnership yet [3]