Revenue from automotive electronics accounted for over 99% of revenue, with an average annual growth rate of approximately 70%.
It is considered to be “China’s Nasdaq”. Since the official transaction, the science and technology board has received much attention from all. Some people think that this is a new wealth-producing and distributing center. On the first day, it was “born” 125 billionaires; some people think that this is a test field for innovation in China’s securities market, and the registered capital is for the first-tier market startups, VC, PE. The organization has a subtle influence.
But there is no doubt that in the long run, it is more likely to be the touchstone of the value of hard technology companies. Therefore, at this time node, we launched the “Overview of the Board” series, hoping to bring readers to quickly understand the company.
As China’s manufacturing industry shifts from labor-intensive to intelligent manufacturing, the automotive industry is undergoing a trend of electrification, and changes in intelligence and networking are taking place. Suichuan Intelligent, as a total solution provider of intelligent manufacturing equipment, mainly provides intelligent manufacturing equipment and related services for the automotive electronics field. Currently, it has cooperated with most of the downstream head enterprises in this field. Suichuan Intelligent was listed on July 22, 2019. As of 15:00 on October 11, 2019, the company’s share price was 51.74 yuan.
Company Profile and Growth History
Suzhou Suichuan Intelligent Technology Co., Ltd. (hereinafter referred to as “Suichuan Intelligent”) was established by Suzhou Suichuan Intelligent Technology Co., Ltd. on December 27, 2017. The company is a smart solution equipment overall solution provider, mainly engaged in the research and development, design, production, sales and service of intelligent manufacturing equipment in automotive electronics, medical health, new energy batteries and other industries, helping manufacturing customers to achieve intelligent manufacturing.
According to the downstream industry classification, the company’s main business income is shown in the following figure. According to the prospectus, in 2016-2018, Suichuan’s main business income was 150 million yuan, 240 million yuan, and 430 million yuan respectively. In 2017 and 2018, revenue increased by 62.4% and 78.8% year-on-year; among them, automotive electronic intelligent manufacturing equipment Revenue accounts for a high proportion of the main business income, with an annual average of about 90%.
Main business income
The rapid growth of the company’s main business is mainly affected by both the market and products.
As the demographic dividend disappears and labor costs rise, China’s manufacturing industry has changed from traditional labor-intensive to intelligent, and the rapid increase in industry demand has led to rapid growth in the downstream market. The company’s main income comes from the automotive electronics industry. According to statistics, in 2016-2018, the global automotive electronics market grew at a compound growth rate of more than 10%. In this context, automotive electronics industry heads such as Continental, Tyco Electronics, etc. It also increased the investment in fixed assets, which further expanded the demand for equipment procurement.
The company’s products are highly competitive in the market and have been recognized by customers. In 2016-2018, the company has established a stable cooperation with old customers, including Tyco Electronics, Lite Group and Molex Group, and added Valeo and Omron in the field of automotive electronic intelligent manufacturing equipment. Major customers such as Guangzhou Automotive Electronics Co., Ltd. and Norma Connection Technology (Wuxi) Co., Ltd. expanded their sales scale.
Company’s financial data and analysis, the company’s risks
According to the prospectus, in 2016-2018, Suichuan’s smart revenues were 150 million yuan, 240 million yuan, and 430 million yuan respectively, with an average annual growth rate of about 70%. The main business income accounted for more than 99%.
revenue
Although revenues continue to grow, companies still face risks from industry and markets.
The company’s main revenue comes from automotive electronic intelligent manufacturing equipment. However, due to the current sluggish automobile industry, the downstream manufacturers will reduce the production of intelligent manufacturing equipment due to poor production and operation and deteriorating financial conditions.The purchase led to a slowdown in the company’s main business income growth. According to China Association of Automobile Manufacturers data, 4 years before 2019 The monthly vehicle production totaled 8.389 million units, down 11.0% year-on-year, and the supply in the automotive market has shrunk.
The company’s customers are too concentrated. In 2016-2018, the sales revenue from Tyco Electronics was RMB 0.8 billion, RMB 120 million and RMB 150 million, respectively, accounting for 58.03%, 50.67% and 35.94% of the main business income.
The company’s overseas business is susceptible to exchange restrictions and policy constraints. In 2016-2018, the proportion of the company’s overseas operating income to the main business income was 15.98%, 15.99%, and 20.66%, mainly from the Philippines, the United States, Mexico, Hungary, Lithuania and other countries. The recent Sino-US trade friction is more likely to exacerbate the company’s revenue risk.
Use of company fundraising
Based on the above market conditions and the company’s business development needs, Suichuan Intelligent plans to raise 467.58 million yuan for new projects in intelligent manufacturing systems and high-end equipment to help the company increase production capacity, increase new product lines and improve delivery capabilities.
Future company will move from intelligent equipment project developer to intelligent manufacturing solution platform brand to create an industrial 4.0 cloud platform for the global market, becoming an automated and intelligent total solution provider, providing customers with automation technology consulting and solutions. One-stop integrated application services such as development, design, manufacturing, verification, delivery, and lifecycle maintenance.
Financing purposes
Other companies on the track
Suichuan Intelligent belongs to the intelligent manufacturing industry. From the perspective of the large-scale industry of intelligent manufacturing equipment, currently there are comparable companies in the same industry, such as Zhiyun, Zhisong and Mais. For the consumer electronics and photovoltaic industries, it is different from Suichuan Smart in the segmentation field. In the automotive electronics segmentation application market, foreign companies such as Komax, ATS and German EmperorStarting early, the business scale is large. As a late entrant of the market, the company has grown rapidly in recent years. The current business scale is similar to that of Germany. Compared with the domestic comparable company Kela Electromechanical, the company’s business scale in the automotive electronics industry and The company’s revenue is greater than that of Kelai Electromechanical. The company is a leading enterprise in domestic automotive electronic intelligent manufacturing equipment.