Qiao Luming (920079.BJ) listed on the Beijing Exchange: Expanding capacity, profit increase, undervalued with high growth potential.

Capitalization landed, Qiao Luming (920079.BJ) successfully listed on the North Exchange, entering a new development stage, actively expanding into the fast lane of scale growth. It is understood that Qiao Luming was approved by the North Exchange on March 5 and started subscription on July 8, with an IPO price of 14.36 yuan. The company completed its public offering on the North Exchange, raising 718 million yuan, and successfully listed on the North Exchange on July 22. The company introduced three strategic investors, including Shenzhen Anpeng Venture Capital Fund, Guangdong Guangqi Jiu Hao Equity Investment, and Shanghai Orient Innovative Investment, with a total allocation of 5 million shares, subject to a lock-up period of 12 months. The successful listing on the North Exchange is of great significance to Qiao Luming's development. On one hand, the pricing is more reasonable, the liquidity on the North Exchange is good, and after capitalization, the market's valuation and pricing transparency can fully explore the company's investment value. On the other hand, through the financing platform, the company can adjust its asset structure, obtain development funds, increase R&D investment to gain product advantages, and accelerate market expansion and increase market share both domestically and internationally. As a leading representative in the interior and exterior industry chain, the capitalization of Qiao Luming's listing on the North Exchange is just the first step towards global development, and the road to valuation growth has just begun. Multi-dimensional driving, steadily increasing profitability Qiao Luming is a high-tech enterprise specializing in the research and development, production, and sale of automotive trim parts, including interior and exterior parts and related molds. Looking at the overall performance, from 2023 to 2025, the company's revenue compound annual growth rate was 11.37%, and the net profit compound annual growth rate was 18.9%, with profitability steadily increasing. By 2025, the net profit margin reached 13.47%, showing a steady increase in profitability. The company's performance is stable, mainly driven by "interior parts + exterior parts". In terms of revenue structure, by 2025, the share of exterior parts and interior parts revenue was 65.81% and 33.74%, respectively. The performance of interior parts was particularly outstanding, with a compound annual growth rate of business revenue of 22.59% from 2023 to 2025, contributing to an increasing revenue trend. In fact, the automotive interior and exterior industry is in a strategic opportunity period where electrification, intelligence, and lightweighting intersect, consistent with the policy for new energy vehicles. The company seizes the opportunity and focuses on research and development, product diversity, and customer development. By increasing research and development investment in innovation, the company enriches its product portfolio and becomes a core supplier to top car companies such as BYD Company Limited and Geely through quality control. At the research and development end, Qiao Luming has made research and development innovation a core competitive advantage since its establishment. The company adopts a research and development mode that synchronously develops with vehicle manufacturers as the main approach, leveraging the advantages of car enterprises to quickly develop results, saving research and development expenses, and enhancing operational efficiency. Its research and development expenses as a percentage of revenue were 3.34%, 2.79%, and 2.96% from 2023 to 2025. The company has an independent research and development center and has independently developed special processes such as dual-color high-gloss injection molding, low-pressure injection molding, and gas-assisted forming, enabling it to support customer's diversified research and fast production. Furthermore, the company has developed multiple automation integration and processing technologies to promote full-process automation in production. As of now, the company has been granted 113 patents, including 23 invention patents. On the product side, the company produces a wide range of automotive trim parts products tailored to different customer needs, including interior parts such as pillar guards, rear fenders, door inner guards, and roof interior panels, and exterior parts such as body decoration, grilles, spoiler plates, and luggage racks. The company places great emphasis on product quality and has obtained certifications for quality management systems, occupational health and safety management systems, and environmental management systems. On the customer end, with continuous research and development investment and stable product quality, the company has become a first-tier supplier to industry-leading enterprises such as Geely Holding, BYD Company Limited, SAIC Motor Corporation, FAW Group, Chery Auto, and BAIC Group, and has gradually expanded to new brands such as NIO and Leapmotor. Geely and BYD Company Limited are the company's two core strategic clients that contribute the most to performance. However, with the gradual increase in other customers, including new brands, and penetration into the global market, the customer structure is expected to achieve balanced growth. Raising funds to expand capacity, "closer to customers" to build a moat Qiao Luming values high-quality growth in performance. From 2023 to 2025, the company's period expenses rate stabilized at 6-7%, profitability steadily improved along with the gross profit margin, and the proportion of accounts receivable continued to decrease, with positive net operating cash flow in 2024 and 2025 amounting to 420 million and 625 million yuan respectively, covering investment and financing needs. In its IPO, 54.4% of the funds raised will be used for the New Energy Vehicle Smart and Lightweight Interior and Exterior Parts Intelligent Manufacturing Project (Phase I). The project has a construction period of 24 months and, when completed, will have an annual production capacity of 3.65 million sets of new energy vehicle interior and exterior parts. Additionally, 38% of the funds will be used for the Automotive Lightweight Interior and Exterior Parts Intelligent Manufacturing Project (Phase I), with a construction period of 24 months and an annual production capacity of 1.53 million sets of automotive lightweight interior and exterior parts after completion. The remaining 7.6% of the funds will be used for working capital. The company disclosed that during the reporting period, the company's capacity utilization rate was at a high level. Through the construction of the investment projects raised in this round, the newly added capacity will better meet the needs of current and future customers, helping to further increase the company's market share and position. Qiao Luming has over ten production and supporting bases in Zhejiang Wenzhou, Zhejiang Changxing, Zhejiang Ningbo, Jiangsu Changzhou, Hunan Xiangtan, Shaanxi Xi'an, Shaanxi Baoji, Sichuan Chengdu, and Henan Zhengzhou. The company's plastic parts production capacity utilization rate remains high, reaching 93.95% in 2025, while the production-sales rate has basically reached 100% over the past three years. The luggage rack product had a capacity utilization rate and production-sales rate of 81.16% and 101.85% respectively in 2025. The company's capacity layout combines the characteristics of core customer industry distribution and adopts a nearby supporting layout strategy. Since 2025, the company has established wholly-owned subsidiaries in Guiyang, Zhejiang Ningbo, Shanxi Jinzhong, Liaoning Shenyang, Hebei Zhangjiakou, Zhejiang Jinhua, and Jiangsu Zhenjiang to support customers. This layout not only "closer to customers" to quickly respond to customer order needs and ensure efficient supply but also strengthens technological collaboration and demand alignment with car companies, promoting upstream and downstream coordinated development and building a solid supply chain moat. Successfully listing on the North Exchange, the dual journey of valuation and performance From an industry perspective, the electrification, intelligence, and lightweighting of automobiles align with the "dual carbon" policy and are long-term supported by the government. The penetration rate of new energy exceeds 50%, but there is still significant room for replacement of existing stock. Looking at the per capita ownership, by 2025, China's per thousand people car ownership is only 333.83 vehicles, significantly lower than the average of over 700 vehicles in most European and American countries, indicating a significant growth opportunity for the interior and exterior industry. According to the research report from Ark Securities, in terms of industry size, the overall interior and exterior industry is huge, accounting for nearly a quarter of the total automotive components industry. The industry concentration is relatively low, with fierce competition but deep cultivation in specific areas. Qiao Luming's business model is highly customer-centric, with a high-quality and stable cooperation system contributing to the steady growth of its performance, forming a solid business moat. Therefore, with high capacity utilization and sales rate, and under a high-quality operational system, Qiao Luming's accounts receivable aging continues to shorten, and the net cash flow from operations remains strong. It is worth noting that the steadily growing industry size and healthy finances provide assurance for the company's active expansion. After expanding capacity, with climbing utilization rates, the company's performance is expected to further increase, achieving scale profit. Overall, the company's IPO valuation is not high, with a PE ratio of less than 15 times, compared to an industry average of around 30 times for automotive components. Looking at comparable companies such as Ningbo Huaxiang Electronic, Jiangnan Mould & Plastic Technology, and Jiangsu Changshu Automotive Trim Group, Qiao Luming has a relatively high profit margin, and its performance is expected to grow after the investment projects come online. Successfully listing on the North Exchange will empower Qiao Luming for long-term development in the capital market, realizing a dual journey of valuation and performance.