“Brother Guolian” Luxshare Precision Industry Co.Ltd(002475) (002475) has just announced the construction of a car. Ten days later, Luxshare Precision Industry Co.Ltd(002475) threw out a fixed increase plan of RMB 13.5 billion. The raised investment projects cover the fields of advanced packaging and testing, display modules, components and system assembly of smart mobile terminals (including smart phones, smart wearable devices, smart cars, etc.); From components, modules to systems, and from consumer electronics to automotive electronics.
Luxshare Precision Industry Co.Ltd(002475) said that the fixed raising investment project is a concrete embodiment of the company’s business layout of all-round coordinated development. It is also a necessary measure to enrich the company’s product matrix and improve the company’s profitability and anti risk ability.
grab the cake of the automobile industry
Relying on Luxshare Precision Industry Co.Ltd(002475) which has won market attention, such as airpods, applewatch assembly and iPhone OEM, it can be said that it is now a popular “OEM” around apple, with very rich experience in OEM of consumer electronic products. But in the field of automobile OEM, it is a newcomer.
On the evening of February 11, Luxshare Precision Industry Co.Ltd(002475) announced that the company had signed a strategic cooperation framework agreement with Chery and planned to jointly establish a joint venture with Chery new energy, and agreed that the controlling shareholder, Lixun Co., Ltd. (hereinafter referred to as “Lixun Co., Ltd.”) would purchase the relevant shares of Chery held by Wudaokou, Qingdao at RMB 10.054 billion. After the completion of the transaction, Lixun Co., Ltd. does not control Chery holdings, Chery shares and Chery new energy. In addition to spending 10 billion yuan to acquire the equity of Chery, on February 11, Luxshare Precision Industry Co.Ltd(002475) also announced that it had acquired about 74.67% equity of convergence technology for HK $1.1 billion, a supplier of customized wire interconnection solutions.
In fact, Foxconn, Lens Technology Co.Ltd(300433) and other apple supply chain companies are accelerating the layout of smart car business. Luxshare Precision Industry Co.Ltd(002475) the determination to rush to eat the automobile industry can also be reflected in the announced fixed increase plan of 13.5 billion yuan.
Luxshare Precision Industry Co.Ltd(002475) on February 21, it was announced that it was planned to raise no more than 13.5 billion yuan for the construction of intelligent wearable device product line and technology upgrading project, intelligent mobile terminal precision component product line construction project, new energy vehicle high-voltage connection system product line construction project, semiconductor advanced packaging and test product line construction project Intelligent mobile terminal display module product line construction project, intelligent vehicle connection system product line construction project, and supplement working capital.
According to the issuance plan, Luxshare Precision Industry Co.Ltd(002475) plans to issue no more than 2.123 billion shares to no more than 35 specific objects, no more than 30% of the total share capital of the company before the issuance. The pricing benchmark date of this non-public offering is the first day of the issuance period, and the issuance price shall not be less than 80% of the average trading price of the company’s shares 20 trading days before the pricing benchmark date.
It is worth noting that the fixed increase of 13.5 billion yuan is also the largest directional financing since Luxshare Precision Industry Co.Ltd(002475) was listed.
Since its listing in 2010, Luxshare Precision Industry Co.Ltd(002475) has implemented fixed growth twice. In 2014, a fixed increase of RMB 2.031 billion was raised to acquire the equity of minority shareholders of Kunshan liantao, increase the capital of Kunshan liantao and carry out the production expansion and technological transformation project of intelligent mobile terminal connection components, increase the capital of Suzhou Fengdao and carry out the expansion project of composite process components and electromechanical modules, increase the capital of Zhuhai win-win and carry out the technical upgrading and production expansion project of flexible printed circuit board, Permanently replenish the company’s working capital.
In 2016, a fixed increase of 4.6 billion yuan was raised for the expansion project of electroacoustic devices and audio and RF modules, the application project of intelligent devices and accessories, the production expansion project of usbtype-c connector modules, the enterprise level high-speed interconnection technology upgrading project, the production expansion project of intelligent mobile terminal connection modules, and the electroplating expansion project in FPC process to supplement working capital. The surplus raised funds will permanently supplement working capital.
many raised investment projects involve the automotive field
Earlier Luxshare Precision Industry Co.Ltd(002475) invested 10 billion in a joint venture with Chery to enter the automotive industry. This fixed increase involves automotive electronics manufacturing in many places.
The fixed growth plan shows that after the completion of the construction project of intelligent mobile terminal precision parts and components production line with an investment of 2.7 billion yuan, it will mainly focus on the R & D, production and sales of intelligent mobile terminal precision parts and components products, and relevant products will be mainly used in the fields of consumer electronics and automobile.
After the completion of the production line construction project of high-voltage connection system products of new energy vehicles with a raised investment of 1.5 billion yuan, it will mainly focus on the R & D, production and sales of high-voltage connection system parts of new energy vehicles. Relevant products are mainly used in the field of new energy vehicles, and do not involve the R & D, production and sales of new energy vehicles.
After the completion of the construction project of intelligent vehicle connection system product line with a raised investment of 500 million yuan, it will mainly focus on the R & D, production and sales of intelligent vehicle connection system parts and components, and relevant products will be mainly used in the automotive field.
Luxshare Precision Industry Co.Ltd(002475) said that at present, the automobile industry is in the process of transformation from traditional manufacturing to scientific and technological manufacturing. The automobile has gradually developed from a simple means of transportation to an “Internet space on wheels” integrating entertainment, office and consumption. Consumers’ demand for automobile safety, environmental protection, comfort and intelligence continues to increase, effectively promoting the development of various precision electronic devices and components (such as automobile harness, connector, etc.) in the upstream of automobile electronics.
At the same time, the intellectualization of traditional vehicles and the gradual popularization of new energy vehicles will increase the capacity demand of a large number of upstream precision electronic devices and components. According to statista’s prediction, the global automotive electronics market will be US $217.9 billion in 2020 and is expected to reach US $400.3 billion by 2028, with a compound annual growth rate of about 8%.
Luxshare Precision Industry Co.Ltd(002475) it is emphasized that the downstream industries involved in the products of this raised investment project mainly include consumer electronics and automotive electronics. With the rapid development and progress of the downstream industry, the upstream precision electronic component production and system assembly industry will usher in huge development opportunities. As the world’s leading manufacturer of precision electronic parts and components and system assembly, it is necessary for the company to fully grasp the development opportunities of the industry, strengthen the product and business layout of key industries through the implementation of this fund-raising project, and further enhance the company’s technology R & D and product manufacturing capacity.
emphasize not to build a complete vehicle
Although many of the Luxshare Precision Industry Co.Ltd(002475) raised investment projects involve automobile projects, they are all in the fields of automobile components and system assembly; From components, modules to systems, it does not involve vehicle manufacturing.
According to the latest disclosure of the research summary on February 13, Luxshare Precision Industry Co.Ltd(002475) does not manufacture complete vehicles, but cooperates with Chery to develop the ODM (original design manufacturer) model of complete vehicles for customers. The business of the joint venture will be led by Chery and Luxshare Precision Industry Co.Ltd(002475) will cooperate in business, customers and other aspects.
Citic Securities Company Limited(600030) pointed out that Luxshare Precision Industry Co.Ltd(002475) has the foundation to enter vehicle manufacturing and can effectively complement the original business. The company has been working around apple for more than 10 years in the field of consumer electronics, forming an integrated layout of zero group + module + complete machine. Automobile has always been the key strategic direction of the company. From parts to the whole, the new blue ocean space of Lixun automobile business is confirmed to be opened. At present, the company’s automobile related business is mainly vehicle parts business. In the future, through the joint venture business with Chery, if the entry into vehicle ODM is successful, it is speculated that the value of single vehicle is expected to increase significantly.
As a leading enterprise in the fruit chain, Luxshare Precision Industry Co.Ltd(002475) cooperates with Chery to cut into the field of new energy vehicle manufacturing, and its intention of transformation is very obvious. In recent years, many fruit chain enterprises have more or less begun to expand new businesses. Foxconn, sunny optics and Goertek Inc(002241) are the representatives of business transformation. With the start of 10 billion fixed increase, it is worth paying attention to how to carry out the follow-up Luxshare Precision Industry Co.Ltd(002475) car building plan.
