After the share price of remained depressed for some time, a “car making” announcement of “Guolian Yige” Luxshare Precision Industry Co.Ltd(002475) (002475) on Friday (February 11) ignited market enthusiasm. On the morning of February 14, Luxshare Precision Industry Co.Ltd(002475) share price once rose by more than 5%.
it is worth mentioning that the latest research summary disclosed on the night of Luxshare Precision Industry Co.Ltd(002475) 13 said that the company did not build cars, but cooperated with Chery to develop another Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) – build good cars for others, that is, the whole vehicle ODM mode. in other words, the joint venture established by Luxshare Precision Industry Co.Ltd(002475) and Chery is mainly engaged in automobile OEM business. This model is also conducive to helping Luxshare Precision Industry Co.Ltd(002475) achieve its medium and long-term goal of becoming a leading manufacturer of automobile parts Tier1 (primary supplier of automobile manufacturers).
Luxshare Precision Industry Co.Ltd(002475) detailed explanation of “car making”
On the evening of February 11, Luxshare Precision Industry Co.Ltd(002475) announced that the company signed a strategic cooperation agreement with Chery group and plans to jointly establish a joint venture with Chery new energy to specialize in the R & D and manufacturing of new energy vehicles and provide cutting-edge R & D design, mass production platform and access to the sea for Luxshare Precision Industry Co.Ltd(002475) auto core parts business, Committed to achieving the company’s medium and long-term goal of becoming a leading manufacturer of auto parts Tier1, in which Luxshare Precision Industry Co.Ltd(002475) shares account for 30% and Chery accounts for 70%. In addition, Luxshare Precision Industry Co.Ltd(002475) controlling shareholder Lixun Co., Ltd. directly invested RMB 10.054 billion in Chery holdings and its related subsidiaries.
as the “first brother” of Apple’s industrial chain and an enterprise with a market value of nearly 300 billion, Luxshare Precision Industry Co.Ltd(002475) suddenly announced the above news, which quickly attracted widespread attention in the market.
According to the latest institutional research summary disclosed by Luxshare Precision Industry Co.Ltd(002475) , from 3:00 to 4:30 p.m. on February 13, hundreds of institutions stepped up the announcement and Research on “car making” over the weekend, and the company also made a detailed description of the relevant situation.
Luxshare Precision Industry Co.Ltd(002475) executives said that in this strategic cooperation with Chery, the company does not build cars, but cooperates with Chery to develop another Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) – build good cars for others, that is, the vehicle ODM model. This cooperation will also create a precedent for the global vehicle ODM business.
“The joint venture does ODM platform development and vehicle assembly. It is expected that the main target business of the joint venture will be the business of foreign traditional brand car enterprises and the business of China’s new smartev (intelligent electric vehicle) brand.” Luxshare Precision Industry Co.Ltd(002475) said that Luxshare Precision Industry Co.Ltd(002475) has rich ODM experience in the fields of consumer electronics, communication and automobile, has a very familiar grasp of ODM business model, and can also provide empowerment for the joint venture in terms of core customer resources. Chery has been deeply engaged in the field of vehicle for many years and has a deep understanding of vehicle products.
Luxshare Precision Industry Co.Ltd(002475) further said that when the scale of ODM car manufacturing business model is less than one million in the early stage, the company’s function is to assist Chery to develop ODM business and build a good platform, because there are essential commercial and management differences between branding and ODM. With the continuous development of ODM business, the company’s core parts business will also play a role.
In other words, Luxshare Precision Industry Co.Ltd(002475) fully joined hands with Chery this time. The first goal of the cooperation between the two sides is to develop the whole vehicle OEM business. The achievement of this goal will further help Luxshare Precision Industry Co.Ltd(002475) auto parts Tier1 (a primary supplier of auto manufacturers) lead the realization of the medium and long-term goal of manufacturers.
The reporter noted that in the announcement on February 11, Luxshare Precision Industry Co.Ltd(002475) has stated that the cooperation between Luxshare Precision Industry Co.Ltd(002475) and Chery to establish a joint venture is exclusive, that is, Chery group can not cooperate with other automobile OEM enterprises, but can carry out OEM business independently or cooperate with automobile brand enterprises.
Luxshare Precision Industry Co.Ltd(002475) also revealed that ODM business has a relatively clear landing project, which will be put into operation in about 12-18 months.
compete directly with Huawei?
For a long time, Huawei’s car manufacturing has always attracted much attention, and has continuously attracted market rumors and Huawei’s rapid clarification. Huawei has always stated that Huawei does not build cars, aims to help car enterprises build cars, and is committed to becoming a provider of intelligent vehicle solutions and auto parts suppliers.
From the perspective of positioning in the automotive field, Luxshare Precision Industry Co.Ltd(002475) listed companies’ positioning in the automotive field is similar to Huawei.
“The company focuses on providing the market with component solutions for the industrial chain, and is also committed to becoming the leading manufacturer of Tier1 auto parts in the world.” Luxshare Precision Industry Co.Ltd(002475) in an institutional survey on the 13th, the company said that the company has settled in the automotive business for more than ten years and mainly focuses on the “nervous system” of the whole vehicle. Its main products include connectors / connecting wires, low / high voltage whole vehicle harness, special harness, etc. Its main customers include Chinese traditional vehicle enterprises, new forces of vehicle manufacturing and some large Tier1 manufacturers.
Luxshare Precision Industry Co.Ltd(002475) believes that smartev is the once-in-a-century opportunity for Chinese Autobots. Smartev has created a new business opportunity and brought many new entrants to the market. However, due to the rapid development and cruel competition, new entrants often have advantages in electrification, intelligent driving and intelligent Internet connection, but lack the foundation of traditional automobile enterprises in the automobile industry, such as understanding of vehicle regulations and quality standards, system ability, platform development ability and experience accumulation, manufacturing qualification and manufacturing ability, supplier resources and management ability, dealer channels, etc. The opportunities brought by smartev include not only the whole vehicle, but also Tier1 with stronger vitality.
“The company should seize this opportunity and realize Tier1 take-off in the next three and five years.” Luxshare Precision Industry Co.Ltd(002475) said that the market scale of Tier1 itself is almost 70% of the total output value of all automobile enterprises. For example, the four well-known Tier1 manufacturers in the world, Bosch, Japan electric equipment, ZF and Magna, have been established for more than 50 years and have a revenue scale of more than 30 billion US dollars. There are no Chinese enterprises. Among the top 100 Tier1 manufacturers in the world, there are only 8 Chinese enterprises.
As for the trend of technology giants building cars one after another, Luxshare Precision Industry Co.Ltd(002475) said that the advantage of the company is that it can see the opportunities and challenges of the market. It will not build cars out of blind pursuit, but obtain the best results in limited resource investment through active selection. The company is engaged in tob business, that is, providing parts and components services for brand customers, which will not change. Relevant report {4567889}
221 institutions swarmed in! “Fruit chain” leader Lixun revealed the latest “car making” path
