221 institutions flocked to it! "Fruit Chain" leader Lixun revealed the latest "car-making" path

"Science and Technology Innovation Board Daily" (editor Zheng Yuanfang), on February 14, Lixun Precision opened nearly 2%, once up more than 6% intraday, as of noon, the stock price was reported at 42.35 yuan / share, up 3.17%. On Friday evening, Luxshare Precision announced that it intends to build a joint venture with Chery to enter the new energy vehicle market.

According to the research minutes released by Lixun a few days ago, under the news of "car building", the total number of institutions that came to the door on the weekend reached 221, in addition to Freshwater Spring, Social Security Fund, Goldman Sachs, Cinda Australia Bank Feng Mingyuan, Industrial Securities Global Xie Zhiyu, Harvest Fund Guikai and other fund managers also appeared on the research list.

In the survey, Lixun Precision made it clear that the company does not build complete vehicles, but cooperates with Chery New Energy to develop ODM business - to build good cars for others, and this cooperation will also create a precedent for global vehicle ODM business.

In the medium and long term, Luxshare's goal is still to become a key parts field - to become a tire 1 for automotive components, directly supplying to OEMs.

Lixun revealed that at present, the listed company's auto business is mainly auto parts, in addition to connectors / connecting wires, low / high voltage vehicle wiring harnesses, special wiring harnesses and other traditional products, has added intelligent cockpit, intelligent driving, power modules, Internet of Vehicles and other services, customers include Volkswagen, General Motors, Tesla, BBA and Japan's three major brand customers.

In addition, Luxshare Precision's research content also explains several issues that the market cares about:

1. What are the specifics of the joint venture?

The joint venture is mainly engaged in ODM platform development and vehicle assembly; the main target business will be the business of foreign traditional brand car companies and the domestic new SmartEV brand business. The company will be led by Chery, and Luxun Precision will collaborate in terms of business and customers.

At present, the ODM business has a relatively clear landing project, and it is expected to be put into production in the next 12-18 months.

2. Why choose ODM mode?

Both Luxun and Chery believe that "the arrival of the (automotive) FOUNDC model is inevitable."

Most new players in smart cars have advantages in electrification and intelligent technology, but lack the foundation of traditional cars, including platform development capabilities and experience, manufacturing qualifications and capabilities, supplier resources, distribution channels, etc.

The ODM model can effectively shorten the problems of brand customers in terms of time to market and output, and "you can choose high-quality customers to cooperate".

3. Why did you choose this time?

At present, the rapid development process of automobile electrification and intelligence, Luxun admitted that if you only rely on your current rhythm and speed, you are worried about missing the window period; especially when there is an ODM opportunity, the company is also worried about losing the opportunity to enter key components.

The consumer electronics market is weak, and cars are becoming a cross-border choice

Some people believe that this cooperation is conducive to Luxun to open new growth points and prepare for the rumored Apple auto foundry business; but some people believe that the current new energy vehicle track has been too crowded, and at the time of entry, Luxun has walked behind its peers.

Indeed, the same is the "fruit chain" foundry leader, the same is the new energy vehicle, Hon Hai (Foxconn) has long taken action, its formation of electric vehicle alliances, the layout of automotive chips, in Saudi Arabia, Thailand and other places to build joint ventures to build factories to build cars the news frequently.

According to Taiwan's Economic Daily reported today, Hon Hai's first electric vehicle Model T will be officially delivered in early March, with a total of 30-50 units, and the commercialization of electric vehicles will officially start; in addition, its Q3 will also deliver the first electric pickup passenger car Endurance to the AMERICAN electric vehicle company Lordstown.

At the same time, in the performance forecast of A-share "fruit chain" manufacturers such as Lens Technology and Changying Precision, the year-on-year increase in net profit in 2021 has declined. Under the concern of the low gross profit margin of mobile phone products and the weak demand for the consumer electronics terminal market, the profit margin of the new energy track has given the supply chain enterprises a new direction, and "cross-border" has become the choice of most consumer electronics manufacturers.

For consumer electronics companies represented by the "fruit chain", will car building be the solution? This time, can Luxun and Hon Hai gamble right? SpDB International analysts said that the strong electronic manufacturing capabilities of consumer electronics companies are in urgent need of automotive intelligence, and they are optimistic about the "cross-border" new energy vehicles of related manufacturers.