China Securities Regulatory Commission's GEM Board Issuance Supervision Department announced on the 15th that the 58th meeting of the GEM Board Issuance Review Committee was held on September 15, 2011. Hubei Shiyan Huachangda Intelligent Equipment Co., Ltd. passed its first application and became a city The first listed company.
Backed by Dongfeng
"It can be said that Dongfeng achieved Huachangda, but with the overall growth of the auto industry slowing down, it is almost impossible to maintain high growth over the past two years." According to an analyst from a securities industry in Wuhan, in this context, Hua Changda The follow-up growth of “adverse market†listing is worrying.
Shiyan is known as the "automobile city," and is the birthplace of the original China's second automobile. It is currently the "China's first, the world's top three" commercial vehicle production base. In Shiyan, there are more than 200 automotive and parts companies supporting Dongfeng Motor. Hua Changda, which specializes in intelligent automation equipment systems, is one of them.
Shiyan is known as the "automobile city," and is the birthplace of the original China's second automobile. It is currently the "China's first, the world's top three" commercial vehicle production base. In Shiyan, there are more than 200 automotive and parts companies supporting Dongfeng Motor. Hua Changda, which specializes in intelligent automation equipment systems, is one of them.
Huachangda and Dongfeng's "associated business" can be traced back to 1997. At that time, Hua Changda founder Yan Hua was registered with the Shiyan Blue Star Cleaning Operation Department (individual industrial and commercial business households), engaged in equipment cleaning, maintenance, transformation and other related businesses, one of its main customers is Dongfeng Motor (600006, stock bar) limited Company special equipment factory (now renamed "Dongfeng Motor Group Co., Ltd. special equipment factory"). This year, Yen Hua is 25 years old and only four years after joining the university.
The registered capital of Huachangda’s predecessor, Shiyan Huachang Dak Industry & Trade Co., Ltd., is RMB 680,000 from the acceptance of the business between Bluestar Cleaning Operations and Dongfeng Special Equipment Factory.
"The National March Eighth Red Banner", Chairman of Shiyan Huachang Electric Co., Ltd. Luo Hui
According to public information, Huachang Dak Industry & Trade Co., Ltd. was established in 2003, mainly engaged in the production and sale of electrical and mechanical equipment and auto parts. Informed sources said: "Huachang Dakota Industry and Trade is basically doing Dongfeng business." At this time, Hua Changda founder Yan Hua, Luo Hui and his wife have left the East, but because of the many years of the East wind and a large number of contacts.
In October 2010, Huachangda was changed to a joint stock company, but in the past seven years, the Dongfeng Department has contributed to its growth. From the prospectus, it can be seen that of the top five customers of the company in 2008, four were from the Dongfeng Department, and the other end customer of the Everbright Machinery was Dongfeng Yueda Kia. This means that the top five customers, which account for 90.94% of revenue, are all related to Dongfeng.
In 2009, Dongfeng Motor Co., Ltd. accounted for only 48.69% of Huachangda's top five customers, but according to the data of “contractor customers and direct customersâ€, orders from Dongfeng Air System still provided about 55.77 million for Huachonda. Yuan’s sales revenue accounted for 59.8%; in 2010, Dongfeng’s total contractor customers and direct customer revenues were approximately 85.56 million yuan, accounting for 47.3%; in the first half of 2011, Dongfeng Motor’s only Dongfeng’s top five customers were limited. The company and Dongfeng Xiaokang Automobile Co., Ltd., but according to the calculation of the general contractor's customers and direct customers, the revenue from the East Wind System reached 52.893 million yuan, accounting for 35%.
In spite of its prospectus, “The combined sales of the issuer to Dongfeng Motor Co., Ltd. has decreased from 63.61% in 2008 to 21.26% in 2010 and 8.38% in January-June 2011.†The data shows that due to a large number of general contractor customers, their end customers are Dongfeng-based companies, so Huachangda's reliance on Dongfeng does not stop there.
Its prospectus also admitted that Hua Changda's general contracting customers include the Ninth Design and Research Institute of Machinery Industry, Dafu Automatic Conveyor (Guangzhou) Co., Ltd., and "have long-term relationships with Dongfeng-based companies such as Dongfeng Honda and Zhengzhou Nissan."
As a strong bond between Huachangda and Dongfeng. One year before the listing, in August 2010, Shanghai Jiahua of the Dongfeng Department undertook a surprise assault on Huachangda.
Dongfeng Motor Co., Ltd. holds 97% of the shares in Shanghai Jiahua and Dongfeng Xiangfan Wagon Co., Ltd. holds 3% of the shares. Shanghai Jiahua not only directly holds 4.61% of Huachangda, but also indirectly holds 1.85% of its shares through Tianjin Boguan, holding a total of 6.46% of Huachangda.
It is worth noting that in 2010 two similar additional issuances, the “East Wind System†and other shares were priced at 3.98 yuan/share, and after two months, the base price of Guangzhou Shishi doubled to 7.99 yuan. As a result, many industry professionals believe that Hua Changda's excellent treatment of the East Wind System is evident.
Regarding the relevance of Dongfeng, Hua Changda stated that the proportion of the company’s consolidated sales with “Dongfeng†customers has dropped from 84.19% in 2008 to 41.93% in 2010, and to January-June 2011. Of the 18.87%, there is no continuity of sales at a high rate, and there is no case of performance dependence. In addition, the company's top five customers accounted for 87.55% of sales in 2009 from 90.94% in 2008, 72.01% in 2010, and 51.19% in January-June 2011, and the top five customers are constantly changing. Hua Changda also stated that the company's downstream customers are expanding from auto manufacturing companies to construction machinery manufacturers, and further reduction in customer concentration is an inevitable trend in the future.
The future is full of variables
Despite smooth meetings, it appears to many investors that Hua Changda's follow-up growth is still full of variables.
Hua Changda stated in the prospectus that the key technologies it currently possesses for intelligent automated production systems have good portability, and can be widely used in many fields such as automobile manufacturing, engineering machinery, logistics warehousing, home electronics, and modern farming.
However, according to the newspaper, during the reporting period, Huachangda’s main revenue was almost entirely from the automobile manufacturing industry, and the high growth in financial performance was also directly related to the sales of the domestic automobile market.
The prospectus disclosed that Huachangda’s net profit from 2008 to 2010 was 5.5402 million yuan, 15.0475 million yuan and 30.7842 million yuan, respectively, showing an explosive growth. One background related to this is that starting from 2009, in response to the international financial crisis and ensuring steady and rapid economic growth, the state has introduced a series of policies to promote automobile consumption, such as autos going to the countryside, trade-in replacements, purchase tax halving, etc. for the automotive industry. Effectively stimulate the automotive consumer market. In 2009, the automobile production and sales volume were 13.791 million and 13.6448 million units respectively, an increase of 47.57% and 45.46% year-on-year. In 2010, it hit another record high. The auto production and sales volume reached 18,264,700 units and 18,016,900 units respectively, an increase of 32.44% year-on-year. 32.37%. “When the auto industry is in a good position, manufacturers often have the impulse to expand their production capacity.†An industry researcher from National Securities analyzed that Hua Changda’s automobile production line project has a period of one to two years from the signing of the contract to the specific implementation: “China Prachanda's current high growth rate is largely due to orders signed around 2009, and it is now exactly the time for the revenue recognition period."
As can be seen from the prospectus, at the end of 2008, the end of 2009, the end of 2010, and June 30, 2011, the book value of Huachangda's accounts receivable was 7.01191 million yuan, 31.348 million yuan, 28009.49 million yuan, and 75.325 million yuan, respectively. Accounts are doubled year by year.
“The growth of Huachangda's explosive growth has largely benefited from the high growth of the automotive industry in recent years, but it is also widely expected that the sales of vehicles will slow down from the beginning of 2012.†The aforementioned national securities industry analyst believes.
According to a research report of Changjiang Securities (000783), in the first half of the year, the automotive industry’s operating income increased by 15.75% year-on-year, including 2.96% in the second quarter, which was a sharp drop from 31.35% in the first quarter. The year-on-year growth rate of net profit attributable to parent companies of listed companies was only 0.72% in the second quarter, which was a significant contraction from 18.13% in the first quarter. Changjiang Securities believes that the automotive industry is in the late stage of the industry prosperity, and the industry's economy is declining.
The many public and private-equity groups contacted by this newspaper stated that they have not paid much attention to the auto industry in the near future.
“The vehicle production line equipment market is a relatively competitive market, and the continuity of its products is not strong.†Analysts of the above national securities believe that the increase in the market for automobile production line equipment mainly comes from the launch of new models and production lines. Expansion: "But with the slowdown in sales, the launch and expansion of new products in the entire automotive industry will be affected."
The prospectus shows that the market share of Huachangda in auto vehicle automation equipment has increased from 0.48% in 2008 to 1.09% in 2010. In 2010, the domestic competitor Jiangsu Tianqi Logistics System Engineering Co., Ltd. had a market share of 4.33%, and HuaChangda was not far away from it.
On August 31, the Ministry of Industry and Information Technology promulgated the “Management Rules for Production of Passenger Vehicles and Product Accessâ€, which proposed higher industry access thresholds in terms of investment amount, research and development qualifications, and other aspects. This was considered by the automotive industry as a measure to restrain the blind expansion of automobiles and overcapacity at the national regulatory level.
"From the current situation, starting in 2012, the trend of the entire automobile production capacity slowdown is obvious." According to the aforementioned analyst from Wuhan securities industry, Huachangda is rushing to the market in the late stage of the automobile industry's periodic prosperity.
Extensive reading:
Huachangda Intelligent Equipment Co., Ltd. is a general contractor of complete sets of automated production equipment for the automotive and construction machinery industry. It specializes in designing and manufacturing complete equipments for the assembly shop, painting shop, and welding shop. The main products are complete sets of welding equipment. Painting, assembly of automated production equipment, products are widely used in automotive, construction machinery, parts and components, military, wind power and other industries. The company is located in the foothills of Wudang Mountain and Han River - Shiyan City, Hubei Province.
As an industry-leading integrated supplier of automated production systems, in recent years, Dongfeng, Zhengzhou Nissan, Hunan Changfeng, Dongfeng Honda, Shanghai Volkswagen, Huatai Automobile, Jiangling Motors, Chongqing Zongshen, Youth Vehicles, Vietnam Success and other well-known domestic and foreign Auto manufacturers have designed and manufactured automated production systems and achieved large-scale export of batches of automated production equipment.
Bike Pump,Bike Tire Pump ,Cycle Air Pump ,Bike Tyre Pump
Self Balancing Electric Scooter Co., Ltd. , http://www.nbkidsbike.com