Shangsheng Electronics: Breaking the product limitations, automotive acoustic solutions boost the market share of products

Since entering 2022, the development of automotive intelligence has continued to accelerate. As the main body of consumption, young people have an obvious trend of consumption upgrading. As the core carrier of human-vehicle interaction (the other is vision), automotive acoustics is expected to become the next type of lamp attribute track. As the leader of domestic autonomous vehicle speakers, Shangsheng Electronics (688533) will take this opportunity to obtain greater development space.

The scale of the industry has expanded, and the market share has steadily increased

Since 2021, the production and sales of new energy vehicles have boomed. According to the forecast of the China Automobile Association, the sales of new energy vehicles are expected to exceed 5 million in 2022, an increase of 47% year-on-year; it is expected that by 2025, sales are expected to be close to 8 million, and the market penetration rate will further increase.

Affected by the trend of intelligence, acoustic application scenarios have increased. Car companies focus on intelligent selling points, automotive acoustic products are more and more abundant, consumers for the car audio system quality requirements to improve, high-power, high-fidelity car speakers gradually become the mainstream, driving the price of single speakers to increase.

According to the International Association of Automobile Manufacturers (OICA), the number of single-vehicle high-fidelity speakers continues to increase, and it is expected that the global car speaker market size is expected to reach 12.710 billion yuan in 2025, with a compound annual growth rate of 5.4%. At the same time, independent external power amplifiers have become a hot trend, and it is expected that the global vehicle power amplifier market will reach 31.791 billion yuan in 2025, with a compound annual growth rate of 8.4%.

Shangsheng Electronics is the earliest domestic leading enterprise in the field of automotive acoustics, and successfully developed the SAIC-GM Buick car speaker system in the 1990s to fill the gap of the domestic combined four-channel, two-tone road structure car speaker system.

According to the International Association of Automobile Manufacturers (OICA), the company's in-vehicle speaker system has a market share of 12.1% in the global passenger car and light commercial vehicle market in 2019; the market share in the European and American markets averaged about 15% in 2017-2019, and the market share in the Chinese market was between 19-20%. Among the domestic peer suppliers, the company's market share of automotive speaker products ranks first.

As a supplier of automotive acoustic product solutions, the sensitivity, distortion and other performance indicators of shangsheng electronic automotive speaker products are at the leading level in the industry. Different speaker product combinations are available to meet the different needs of customers.

Service upgrade to achieve a single product to a complete solution

Shangsheng Electronics has the research and development and design capabilities of acoustic products, system solutions and related algorithms, and its products mainly cover car speaker systems, car power amplifiers and AVAS, which can provide customers with comprehensive product solutions.

It is precisely with superior services that the main customers of Shangsheng Electronics are "big factories". It is understood that at present, the company's top five customers are Volkswagen Group, Ford Group, Dr. Audiovisual, SAIC Volkswagen and SAIC Motor Group, accounting for about 60% of revenue.

In order to better get close to customers and improve customer response speed and service quality, Shangsheng Electronics has set up production bases in China, the Czech Republic, Brazil and Mexico according to the distribution of automobile production capacity and the regional situation of customers, and initially formed a global layout that radiates major automobile production areas.

In addition, the core technology of Shangsheng Electronics involves four aspects: acoustic product simulation and design, vehicle sound effect design, acoustic signal processing technology, and digital speaker system technology, most of which are independently developed by the company and have high independent controllability.

According to the announcement, as of April 13, 2021, the company has a total of 28 domestic invention patents, 7 PCT international patents, 61 utility model patents, 2 design patents, 5 integrated circuit layout design exclusive rights, 6 software copyrights, continuously improving the added value of products, and the company's long-term core competitiveness is stable.

Currently, bicycles are usually equipped with 6 speakers. Compared with enterprises that only supply speaker products, the complete automotive acoustic solution provided by Shangsheng Electronics - bicycle ASP theory can reach more than 2,000 yuan, and the price is more than twice as high.

According to the company's 2021 third quarter report data, the company has now obtained huawei Jinkang X1/X1plus vehicle sound effect system, ideal car X01 audio and power amplifier project, Weilai autoforce vehicle sound effect and warning device system project and other complete acoustic solution project fixed points, the fourth quarter performance growth is in sight.

It is worth noting that since 2017, the capacity utilization rate of audio electronic car speakers has basically remained above 100% from 2017 to 2019, and it has been in a state of full load carrying for consecutive years. As a result, according to the prospectus, the company's IPO raised a total of 447 million yuan, of which 243 million has been used to expand the production of speaker projects, and the annual output of 25 million car speakers will be added after the completion of the investment project, and the profitability will be improved again.