A-share subscription | Taihong Wanli (603210.SH) opens subscription for well-known suppliers to Guangzhou Automobile Group, Ideal, etc.

On March 28, Taihongwanli (603210.SH) began its subscription with an offering price of 8.60 yuan per share, a subscription limit of 27,000 shares, a P/E ratio of 18.60 times, listed on the Shanghai Stock Exchange, and Orient serving as its sponsor. The prospectus disclosed that Taihongwanli's main business is the research and development, production, and sale of automotive structural and functional parts. The company's main products include automotive structural and functional parts, which are the main components of car bodies and chassis, and are key components required for car production. Currently, Taihongwanli has become a first-tier supplier to several well-known domestic and foreign vehicle manufacturers or brands such as GEELY AUTO, Great Wall Motor, Volvo, SAIC Motor Corporation, Guangzhou Automobile Group, General Motors-Wuling, Jiangling Motors Corporation, Lynk & Co, among others. The company has entered the supply chain system of several automotive platforms under Geely Group, such as Haohan, CMA, PMA, and Great Wall Motor's A30, B30, ES11, actively exploring cooperation relationships in the field of new energy vehicles with TS Company, Jike Automobile, Ideal Automobile, NIO, LEAPMOTOR, X Company, and becoming their first-tier supplier. Additionally, it is also a supporting partner of well-known component suppliers such as Contemporary Amperex Technology, Wuxi Zhenhua Auto Parts, Hayes Lemmerz International, Saike Li, and others. Financially, in the years 2021, 2022, and 2023, the company achieved operating income of approximately 1.011 billion yuan, 1.478 billion yuan, and 1.544 billion yuan, respectively. The net profits were approximately 85.3763 million yuan, 131 million yuan, and 162 million yuan, respectively. It is worth noting that the prospectus specifically warns investors to pay attention to the risks of slowing revenue growth or declining revenue. In 2021 and 2022, the company's operating income increased by 67.58% and 46.13% year-on-year, showing a fast growth rate. In 2023, due to certain changes in the downstream passenger car market, the introduction of new models, and increasing competition, the growth rate of the company's product application vehicle sales is relatively gradual. Therefore, that year's operating income is expected to be 1.544 billion yuan, representing a 4.50% increase year-on-year, indicating a slower growth rate. If there are significant changes in the domestic and international environment in the future, the company fails to maintain good cooperation relationships with downstream vehicle manufacturers or has difficulties in developing new products for new vehicle models, there is a risk of slowing revenue growth or declining revenue for the company in the future.