According to Gelonghui, Shanghai Fengtian Electronics Co., Ltd. (hereinafter referred to as "Fengtian Electronics") intends to land on the Science and Technology Innovation Board, and is currently in a state of inquiry, with Everbright Securities as its sponsor. It is worth mentioning that the company is still listed on the New Third Board.
Fengtian Electronics, the predecessor of Fengtian Electronics, was established in April 2002 and was jointly funded by Peng Xiongfei and Peng Xiongbing. On the eve of the IPO, Peng Xiongfei and Peng Xiongbing brothers held a total of 69.77% of the company's shares, and were the controlling shareholders and actual controllers of the company. In addition, Li Dalai, Zhang Manli and Yuan Zheng hold more than 5% of the company's shares.
1
Performance growth uncertainty
Fengtian Electronics is mainly engaged in the research and development, production and sales of automotive electronic products, the main products include vehicle power supply products (vehicle inverters, vehicle DC-DC converters, vehicle USB and vehicle chargers, etc.) and automotive thermal management system products (high-pressure water heaters, air conditioning controllers, etc.) two categories.
From 2018 to 2020, Fengtian Electronics achieved an operating income increase from 311 million yuan to 504 million yuan, with an average annual compound growth rate of 27.39%; the net profit attributable to the mother increased from 13.6594 million yuan to 66.7031 million yuan in the same period, with an average annual compound growth rate of 120.98%. During the period, the gross profit margin of the company's main business showed an upward trend, which was 21.28%, 22.88% and 29.94% respectively.
By product, automotive power supply products contribute to the company's main source of revenue, accounting for more than 90% of revenue in 2020. Among them, the vehicle inverter is its first core product, and its revenue in 2020 increased by 73% year-on-year to 291 million yuan, accounting for nearly 60% of the current revenue.
The reason is that in 2020, the domestic heavy-duty truck market is better, and the sales and price of the company's high-power vehicle inverters supporting heavy-duty trucks have risen together to drive the revenue growth of the business, with sales volume increasing from 66,700 pieces to 780,800 pieces in 2019, and the average selling price increased from 235.32 yuan / set in 2019 to 373.07 yuan / set, an increase of 59% year-on-year. Among them, the price of high-power vehicle inverters increased from 592.63 yuan / set to 726.96 yuan / set, and sales rose to 198,100 sets.
Since Fengtian Electronics Vehicle Inverter is currently mainly supporting domestic heavy-duty truck customers, the prosperity of the heavy-duty truck industry has a greater impact on the company's revenue and profitability of the product. In 2020, stimulated by the increase in the scope of China III's restrictions and the end of China III's elimination subsidies in some regions at the end of 2020, the sales of heavy-duty trucks exceeded market expectations, and the annual sales reached 1.62 million units, setting a new high in sales. However, as the positive factors fade, CITIC Securities expects subsequent heavy-duty truck sales to decline, falling to 1.3 million units in 2021 and 1.27 million units in 2022. As a result, it may adversely affect the sales volume and revenue of the company's products.
2 High customer concentration
During the reporting period, Fengtian Electronics' automotive electronic products were mainly sold to domestic and foreign automakers. In the field of commercial vehicles, the company has become a first-class supplier of domestic commercial vehicle OEMs such as FAW Jiefang, Sinotruk, Shaanxi National Heavy Duty Truck and Dongfeng Commercial Vehicle. In the field of passenger cars, the company has become a first-tier supplier to domestic and foreign passenger car OEMs such as French Peugeot Citroen, FAW Group, SAIC Motor, SAIC Volkswagen, Great Wall Group, Dongfeng Group and so on.
From 2018 to 2020, the company's cumulative sales to the top five customers accounted for 73.65%, 66.82% and 78.85% of the operating income in each period, and the customer concentration was high.
Under the trend of new energy vehicles, Fengtian Electronics also has high-pressure water heaters supporting new energy vehicles. However, due to the sales of the two old customers of BAIC BJEV and Dongfeng Passenger Vehicle in 2020 and the first half of 2021, the sales volume of the company was lower than expected, resulting in a significant decline in the company's sales of high-pressure water heaters despite the high matching rate.
3
brief summary
Benefiting from the high prosperity of the downstream heavy-duty truck industry, Fengtian Electronics has shown a good growth trend in revenue and performance in recent years. However, due to the strong cyclical characteristics of the automotive industry and the susceptibility to policy impacts, the sales volume of the heavy-duty truck industry may decline compared with 2020, which will adversely affect the company's high performance to a certain extent. In addition, automotive electronic products rely on downstream customers, and the customer's operating conditions and the progress of developing new customers may affect the company's business development, which is worth paying attention to.