The “fruit chain” giants with a market value of 300 billion have frequently added new energy vehicle tracks.
On February 22, Luxshare Precision Industry Co.Ltd(002475) announced that it plans to raise 13.5 billion yuan, of which 2 billion yuan will be invested in the new energy vehicle industry chain. Previously, the controlling shareholder of Luxshare Precision Industry Co.Ltd(002475) Lixun Co., Ltd. spent 10 billion to buy 19.88% equity of Chery holdings, 7.87% equity of Chery shares and 6.24% equity of Chery new energy held by Qingdao Wudaokou new energy automobile industry fund (limited partnership), the largest shareholder of Chery holdings. Luxshare Precision Industry Co.Ltd(002475) also signed the strategic cooperation framework agreement with Chery group to establish a joint venture with Chery new energy to establish a strategic partnership between the two sides.
Luxshare Precision Industry Co.Ltd(002475) it is proposed to increase 13.5 billion yuan
Luxshare Precision Industry Co.Ltd(002475) said in the announcement that it is planned to raise no more than 13.5 billion yuan for the construction of intelligent mobile terminal precision parts and components product line, new energy vehicle high-voltage connection system product line, semiconductor advanced packaging and test product line, intelligent vehicle connection system product line, etc.
According to Luxshare Precision Industry Co.Ltd(002475) the total share capital of 7.077 billion shares as of the trading day before the plan announcement date (February 18, 2022), the number of shares in this non-public offering shall not exceed 2.123 billion shares (including this number), and the approval document of the CSRC on this offering shall prevail. The offering price shall not be lower than 80% of the average trading price of the company’s shares 20 trading days before the pricing base date (excluding the pricing base date, the same below).
Luxshare Precision Industry Co.Ltd(002475) said that after the non-public offering, the proportion of the company’s shares held by Wang Laichun and Wang Laisheng, the actual controllers of the company, was changed to 29.75%, and they are still the actual controllers of the company.
Luxshare Precision Industry Co.Ltd(002475) said in the announcement that the company has nearly 20 years of experience in R & D and production of precision electronic devices and components. It is a leading consumer electronics platform leading enterprise in China. For many years, it has continuously served well-known major customers in the industry and continued product and technological innovation. This non-public offering is committed to improving the company’s R & D strength and production capacity in downstream application fields such as consumer electronics and smart cars, so as to support the high-end, information and intelligent construction of China’s manufacturing industry. At the level of industry development trend, 5g network construction, the upgrading of smart phones and smart wearable devices, and the rapid popularization of new energy vehicles will bring sustained and large-scale incremental demand to the upstream precision electronic devices and components industry. This non-public offering is committed to seizing the development opportunities of the industry, further improving the R & D strength and production capacity of new products, and constantly consolidating the company’s competitive advantage in the industry.
Luxshare Precision Industry Co.Ltd(002475) said that the downstream application fields of the company’s precision electronic devices and components industry are extremely wide. In addition to consumer electronics, it also includes automotive electronics, communication equipment, industrial instruments, medical devices, aerospace and other fields, and the relevant market demand is radioactive release. With the continuous progress of scientific and technological innovation, the types and quantity of the company’s products and corresponding downstream application fields will continue to grow, and the market development potential is huge.
Luxshare Precision Industry Co.Ltd(002475) in the fixed growth announcement, the company’s products and business layout show the characteristics of diversification and vertical integration. The main products and business modules cover downstream application fields such as consumer electronics, communications and automobiles. Among them, consumer electronics business occupies the main position of the company’s business, while communications Businesses in other fields such as automobile have fully benefited from the strong comprehensive capabilities of process, R & D, quality and business accumulated by the early company in the field of consumer electronics. They cooperate with each other in terms of experience and resources, forming a virtuous circle of mutual nourishment and mutual promotion, which has laid a solid foundation for the company to further expand its business to various downstream application fields. Through this non-public offering, the company will seize market opportunities, enrich and expand product layout, promote a virtuous circle of business and improve the company’s sustainable profitability.
new energy ambition revealed
from the perspective of the project, in addition to the traditional consumer electronics business, the new energy vehicle business also plays an important role in this fixed increase. Specifically, the new energy vehicle high-voltage connection system product line project plans to invest 1.5 billion yuan, and the intelligent vehicle connection system product line plans to invest 500 million yuan.
In fact, Luxshare Precision Industry Co.Ltd(002475) has long shown its ambition in the new energy vehicle industry. On February 11, Luxshare Precision Industry Co.Ltd(002475) announced that the company signed the strategic cooperation framework agreement with Chery group and planned to establish a joint venture with Chery new energy to establish a strategic partnership between the two sides.
Luxshare Precision Industry Co.Ltd(002475) in the relevant announcement, the company signed a strategic cooperation framework agreement with Chery holdings and its related parties, aiming to comprehensively strengthen the strategic layout of the company’s automobile business and make full use of Chery group’s deep technical precipitation and terminal brand resources in the field of new energy vehicles, Set up a joint venture company and cross-border empower the technology and customer resources accumulated by the company in the field of consumer electronics over the years. With the strong support of the vehicle joint venture platform as the cutting-edge R & D and design, mass production platform and sea port, the company will dynamically enter the market, quickly improve the comprehensive ability of the company as the core parts of tier 1 manufacturer, and quickly polish, optimize and increase the quantity in practice, Realize the diversified and large-scale development of the company’s core parts, achieve the medium and long-term goal of becoming a leading manufacturer of tier 1, and lay a solid foundation for the company’s sustainable development in the future.
China Merchants Securities Co.Ltd(600999) in the previous research report, it is pointed out that the automobile business of Luxshare Precision Industry Co.Ltd(002475) related systems has been precipitated for more than ten years. At present, the automobile subsidiaries of the listed company of Lixun include Luxshare Precision Industry Co.Ltd(002475) industry, Fujian source optoelectronic equipment, Germany Suk, etc., mainly focusing on the “nervous system” of the whole vehicle, including connectors / connections, low / high voltage whole vehicle harness, special harness, etc. the main customers include Chinese traditional vehicle enterprises New forces of car making and some large Tier1 manufacturers; The major shareholder also has a man-machine interface solution in vitro. Tier1 company BCS (Suzhou Lisheng Automotive Technology) has increased its business of intelligent cockpit, intelligent driving, power module and Internet of vehicles in recent years. Its customers are all over the world, including Volkswagen, GM, Tesla, BBA and Japan, and cooperate with the listed company tier2 business; At present, the total revenue scale of domestic and foreign automobile business is nearly 10 billion.
institutions are optimistic about the layout of consumer electronics leaders and new energy
in recent years, with the development of new energy vehicle industry, many consumer electronics enterprises have made rapid layout.
Zou Runfang, an analyst at AVIC securities, said that when mobile phones encounter growth bottlenecks, new energy vehicles maintain strong growth. According to the passenger Federation, China’s sales of new energy passenger vehicles will reach 3.288 million in 2021, with a year-on-year growth rate of 179.6%. It is expected that new energy vehicles will exceed 6 million in 2022, and the penetration rate of new energy vehicles will reach about 22%.
“We are optimistic about the investment opportunities in automotive electronics driven by new energy vehicles, which are mainly divided into two fields: smart cockpit and power electronics. We regard the function of smart cockpit as an extension of mobile phones, so smart cockpit can undertake the expansion of some mobile phone industry chains, focusing on camera, radar, audio and other directions.” Zou Runfang said.
Galaxy Securities pointed out that at present, the iterative trend of intelligent and electric vehicles is obvious, and the demand for ODM of complete vehicles by brands is expected to increase. Tesla reduces the difficulty of building cars through vertical integration. Consumer electronics enterprises such as apple, Xiaomi and Huawei enter the market to produce cars. Consumer electronics and automotive electronics have similar development logic. Consumer electronics enterprises tend to integrate existing EMS resources and expand to the field of automotive electronics. The EMS suppliers of consumer electronics represented by Luxshare Precision Industry Co.Ltd(002475) , Wingtech Technology Co.Ltd(600745) and Hon Hai group are expected to give full play to the advantages of long-term cooperation and become their automotive Tier1 suppliers. In the future, ODM mode will be an important production mode in the field of new energy / intelligent vehicles, and the automobile OEM system is expected to be formed.
