The industry chain welcomes the IPO boom: new energy vehicle suppliers rush to listing, who is the most profitable?

Produced | Sanyan Pro Author | Yuchen

After the end of the year, the new energy vehicle industry chain ushered in a wave of IPO climax.

According to incomplete statistics, 14 related companies have been rushing to IPO in the past two months. These 14 enterprises are involved in multiple industrial chain fields. Among them, 6 are power battery industry chain, 3 are auto parts enterprises, 2 belong to electrical connection component enterprises, and the business of two enterprises is quality inspection and new energy vehicle charging modules.

The power battery industry chain accounted for a large proportion of IPOs

From the table, we can see that the proportion of IPOs in the power battery industry chain has a relatively obvious advantage.

As we all know, power batteries can be said to be the "heart" of new energy vehicles, and their position in the new energy industry chain is obvious to all. Power battery companies have also received extensive attention from the capital market.

However, in the current domestic power battery field, CATL and BYD occupy an absolute advantage, and the installed capacity of the two companies accounts for more than 70%.

In comparison, other power battery companies belong to the second line. For example, Hive Energy, China Innovation Aviation, Guoxuan Hi-Tech, Sunwoda, EVE Lithium Energy, etc.

Among the above-mentioned second-tier power battery companies, China Innovation Aviation, Guoxuan Hi-Tech, and Sunwoda were all successfully listed in 2022.

At the end of last year, the IPO application of the Hive Energy Science and Technology Innovation Board was also accepted.

In fact, in the power battery industry chain, in addition to the above-mentioned first- and second-tier power battery as the main business, there are a large number of enterprises are upstream material enterprises, which provide materials for CATL and BYD.

Among the 6 power battery industry chain enterprises in the above table, except for Hive Energy, other companies are basically upstream material companies.

On the one hand, upstream material companies benefit from the drive of downstream power battery companies, and their development is relatively rapid, and they are also sought after by the capital market. On the other hand, there is also an important problem, that is, the dependence on a single customer.

Suppliers are highly dependent on a single customer

In fact, in recent years, with the rapid development of the new energy vehicle industry, driven by leading enterprises, there have been waves of IPOs such as "Ningde era supplier IPO wave" and "Tesla supplier IPO wave".

From the above table, we can most intuitively see that many of these companies are suppliers of new energy giants such as CATL and Tesla.

According to the prospectus of New Aluminum Era, it achieved operating income of 351 million yuan, 332 million yuan, 618 million yuan and 531 million yuan in 2019, 2020, 2021 and the first half of 2022, and net profit attributable to the parent of 3.5223 million yuan, -2.2865 million yuan, 26.7509 million yuan and 52.4506 million yuan respectively.

However, in the corresponding reporting period, the proportion of the company's sales revenue to BYD to operating income was 68.05%, 64.80%, 70.42% and 74.55%, respectively.

In the reporting periods of 2019, 2020, 2021 and the first half of 2022, the operating income from CATL accounted for 59.71%, 62.38%, 64.72% and 63.00% respectively.

Zhongrui Electronics' revenue comes from LG New Energy. The data shows that the proportion of sales of Zhongrui Electronics to LG New Energy is expanding year by year. From 2019 to the first half of 2022, the sales amount accounted for 10.02%, 44.2%, 50.49% and 61.78% respectively.

Over-reliance on a single large customer is a double-edged sword. Once large customers turn to other companies, it may cause a significant decline in performance.

What type of business is the most profitable?

In terms of revenue, the annual revenue of enterprises in the above table exceeds 200 million yuan, and the highest is 4.4 billion yuan.

Among them, there are 4 enterprises with an annual revenue of 200 million to 500 million, 6 enterprises with 500 million to 1 billion, and only 3 enterprises with more than 1 billion.

The two enterprises with the highest annual revenue are both power battery industry chain enterprises, with Hive Energy 4.474 billion yuan and Zhonglun New Material 1.994 billion yuan. Another company with more than 1 billion is OneLink Technology.

Therefore, whether it is the average or the highest number, the annual revenue of power battery companies is at a high level in the industry. However, the difference between the six enterprises is large, with the difference between the lowest and highest exceeding 4 billion yuan.

In addition, the annual revenue of the three auto parts companies in the table is also 800 million yuan on average, and the revenue of the two home appliance connection component companies is also at a high level, both exceeding 800 million yuan.

If only from the perspective of revenue, it seems that power battery companies may make more money. However, whether to make money or not depends on the net profit and future development prospects.

In fact, although Hive Energy's revenue is high, its losses have been expanding in recent years, with losses of 326 million yuan, 701 million yuan, 1.154 billion yuan and 897 million yuan respectively from 2019 to the first half of 2022.

However, from 2019 to 2021, Hive Energy's R&D expenses were 375 million yuan, 380 million yuan and 724 million yuan, respectively. In the first half of 2022 alone, its R&D expenses reached 572 million yuan, which has reached more than 70% of the whole year of 2021.

Increasing R&D investment is paying for increased competitiveness, and this investment may pay huge dividends in the future.

In addition, due to the rise in the price of upstream raw materials, power battery manufacturers are facing greater cost pressure, EVE Lithium Energy, Guoxuan Hi-Tech, etc. also experienced a decline in profits or even losses in the first half of last year.

Most of the other companies in the table have achieved profit growth.

It is foreseeable that as the new energy automobile industry continues to be hot, the second wave of IPOs in the new energy automobile industry will continue.

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