A-share subscription | The "little giant" Hengdao Technology (920177.BJ) of automotive hot runner system opens subscription. The products are applied downstream to well-known car brands such as Ideal.

On April 7th, Hengdao Technology (920177.BJ) launched its IPO with an issue price of 21.8 yuan per share and a maximum subscription limit of 588,600 shares. The price-earnings ratio is 14.99 times, listed on the Beijing Stock Exchange, with Guotai Haitong Securities as its sponsoring institution. According to the prospectus, Hengdao Technology is a national-level specialized and new "little giant" enterprise, with its main product being hot runner systems, which are core heating component systems in hot runner injection molds, widely used in automotive headlights, automotive interior and exterior decorations, and 3C consumer electronics. The company has established long-term stable cooperative relationships with well-known enterprises such as BYD Company Limited, Anriguangdian (a fully-owned subsidiary of Sanan Optoelectronics), Jiali Stock, Changzhou Xingyu Automotive Lighting Systems, Qingdao Hi-Tech Moulds & Plastics Technology, and Gree Electric Appliances, Inc. of Zhuhai. Its products are downstream applications for well-known automotive brands such as BYD Company Limited, SAIC Volkswagen, SAIC General Motors, Ideal, NIO, and Chery. According to QYResearch statistics, the global hot runner market sales volume is expected to increase from 189.24 billion yuan in 2019 to 231.54 billion yuan in 2024. In the future, with the growth trend of downstream industries such as the automotive industry, 3C consumer electronics industry, household appliances industry, medical industry, and the increasing demand for high-performance products in downstream markets, hot runner systems will further penetrate the injection molding field, leading to a rise in operating income. It is estimated that the global hot runner market sales volume will reach 301.68 billion yuan by 2030. According to QYResearch, in 2024, China's hot runner sales volume and market sales revenue will account for 46.46% and 34.02% of the global total, respectively. Domestic hot runner sales revenue is expected to rise from 60.42 billion yuan in 2019 to 78.76 billion yuan in 2024. With the increasing utilization rate of hot runner systems in China, domestic market sales are expected to continue steady growth, with domestic hot runner sales revenue projected to reach 11.43 trillion yuan in 2030. During the reporting period, the company's main revenue source from hot runner products came from the automotive sector, with the global hot runner system market revenue in the automotive sector (including headlights, interior and exterior decorations, etc.) expected to reach 96.78 billion yuan in 2024, and is projected to increase to 132.93 billion yuan by 2030. The domestic automotive hot runner market has maintained steady growth in recent years, with QYResearch research reports showing that the domestic automotive hot runner market was 27.16 billion yuan in 2024, with the domestic automotive hot runner sales revenue estimated to reach 41.06 billion yuan in 2030. Financially, in 2022, 2023, and 2024, the company achieved operating income of approximately 168 million yuan, 234 million yuan, and 297 million yuan respectively; with net profits of approximately 48.6776 million yuan, 68.8718 million yuan, and 79.2064 million yuan in the same period.