Ningbo Sunrise(SZ:002937)2022-12-05 02:16Company Overview - Ningbo Xingrui Electronic Technology Co., Ltd. has undergone three development phases: 1. 2001-2010: Established core capabilities in precision manufacturing, achieving a global market share of 1 in TV coordinators [2] 2. 2010-2018: Transitioned to automotive electronics, consumer electronics, and smart terminals due to IC substitution issues in TV coordinators [2] 3. Post-2018: Focused on smart terminals and automotive electronics, expanding the industrial chain [3] Production and Capacity - The company has production bases in six locations: Suzhou, Ningbo, Dongguan, Wuxi, Vietnam, and Indonesia, with overseas bases aimed at reducing labor costs and enhancing competitiveness [3] - The Vietnam factory is expected to produce 15 million units, generating sales of approximately 400-500 million RMB, primarily following the capacity transfer of clients like Foxconn and Compal [3] - The Indonesia factory has already started production, meeting a demand of 7 million units for smart terminal components [3] Financial Performance - Over 60% of sales revenue comes from exports, with a focus on high-quality clients, resulting in favorable gross margins [3] - The company has a high employee loyalty rate, with over 17% employee stock ownership [3] Market Strategy - The company is shifting its marketing focus towards top domestic clients in the new energy vehicle and consumer electronics sectors due to the pandemic's uncertainties [3] - The collaboration with Panasonic on BDU components is expected to become a significant growth point, with products aimed at major automotive brands like Mercedes-Benz and BMW [4] Currency and Risk Management - The company employs hedging strategies to mitigate the impact of currency fluctuations, benefiting from RMB depreciation due to its export-oriented product line [4] - Current capacity utilization is estimated at around 80%, with some impact from the pandemic but overall manageable [3]