Luxshare Precision Industry Co.Ltd(002475) (002475) the heat of Chery's massive march into the new energy vehicle business has not dissipated. On February 21, Lixun threw away a huge fixed growth plan and continued to increase the new energy vehicle business.
According to the announcement, Luxshare Precision Industry Co.Ltd(002475) the proposed non-public offering of shares will not exceed 30% of the total share capital, the number of shares will not exceed 2.1 billion, and the total amount will not exceed 13.5 billion yuan. The raised investment projects mainly cover the fields of packaging and testing, display modules, components and system assembly of smart mobile terminals (including smart phones, smart wearable devices, smart cars, etc.), and related downstream industries mainly include consumer electronics and automotive electronics.
On the whole, under the impact of power rationing, lack of core and rising prices of raw materials, apple supplier giant Luxshare Precision Industry Co.Ltd(002475) is seeking positive transformation - placing heavy bets on the new energy vehicle business.
It can also be clearly seen from its fixed growth plan that the consumer electronics business is still the foundation of its foundation, and more than half of the amount is invested in wearable and intelligent terminal related businesses.
The current hard core investment research starts with the fixed increase of 10 billion yuan of Luxshare Precision Industry Co.Ltd(002475) , and analyzes its strategic play in the transformation.
attack the new energy vehicle business
Whether out of concerns about Apple's supply chain security or in response to the decline of consumer electronics since the second half of last year, transformation is what fruit chain giant Luxshare Precision Industry Co.Ltd(002475) has to do.
21st Century Capital Research Institute previously pointed out in an article that many fruit chain companies are looking for a new way out and collectively aim at the hottest track at present - new energy vehicles.
In 2021, although many companies have layout in new energy vehicles, they are generally low-key. In early 2022, Luxshare Precision Industry Co.Ltd(002475) joined hands with Chery and invested 10 billion shares, which was the first shot to enter the new energy vehicle business with a high profile. The subsequent 10 billion fixed growth plan highlights its ambition in the layout of the automotive business.
Luxshare Precision Industry Co.Ltd(002475) in the fixed growth plan, it is pointed out that on the one hand, the traditional automobile industry is undergoing intelligent transformation, on the other hand, new energy vehicles will be gradually popularized, which 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 reach 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%.
In view of this, Luxshare Precision Industry Co.Ltd(002475) of the six projects to be added this time, two are explicitly invested in the business of new energy vehicles, namely, the construction project of high-voltage connection system product line of new energy vehicles (1.5 billion yuan) and the construction project of intelligent vehicle connection system product line (500 million yuan), with a total investment of 2 billion yuan.
These two projects have many details worth pondering.
First, the construction site of the new energy vehicle high-voltage connection system product project is Liyang City, Changzhou City, Jiangsu Province. It is very coincidental that another project will also be settled there in the new energy vehicle layout of another fruit chain company Shenzhen Everwin Precision Technology Co.Ltd(300115) .
Interestingly, the registered address of Luxshare Precision Industry Co.Ltd(002475) industry (Jiangsu) Co., Ltd., the implementation subject of Luxshare Precision Industry Co.Ltd(002475) Changzhou project, is Beijing Centergate Technologies (Holding) Co.Ltd(000931) Avenue, Kunlun Street, Liyang City, which is close to the site selection of Contemporary Amperex Technology Co.Limited(300750) in Liyang project.
At present, there is no public information to show that they have a cooperative relationship, but in the field of new energy vehicles, high-voltage connectors are indeed extremely important components, which are applied in complete vehicles and charging facilities.
Second, the construction site of the intelligent vehicle connection system product production line is Li County, Baoding City, Hebei Province, and the implementation subject of the project is Luxshare Precision Industry Co.Ltd(002475) industry (Baoding) Co., Ltd. Many of its public recruitment information shows that the company's main customers are "Nissan", great wall, Geely and other international well-known brand cars.
Luxshare Precision Industry Co.Ltd(002475) in the company's annual report, it is clearly stated that it has settled a good foundation in the field of new energy vehicles, and has continuously made breakthroughs in vehicle manufacturers and Tier1 customer base, and both are well-known automobile brands at home and abroad.
consumer electronics guarding the city
Although the business layout of Luxshare Precision Industry Co.Ltd(002475) new energy vehicles can be described as a big bang, from the perspective of project investment, the focus of development is still consumer electronics.
Among them, the projects involving consumer electronics include the construction and technology upgrading project of intelligent wearable device product line (RMB 3.5 billion), the construction project of intelligent mobile terminal precision parts and components product line (RMB 2.7 billion), the construction project of semiconductor advanced packaging and testing product line (RMB 950 million), the construction project of intelligent mobile terminal display module product line (RMB 800 million), etc, A total of nearly 7.95 billion yuan was invested.
As an airpods agent, although there are always doubts about its decline in shipments and lower downstream demand in the market, Luxshare Precision Industry Co.Ltd(002475) is still overweight in relevant business areas, with the largest investment in wearable devices.
Luxshare Precision Industry Co.Ltd(002475) claimed that under the application of 5g, artificial intelligence, cloud computing and other technologies, the upgrading speed of intelligent wearable devices has gradually accelerated, bringing a large number of new production capacity requirements. At the same time, the degree of integration of electronic components in intelligent wearable devices has also increased accordingly, and the technical threshold has been continuously improved.
The expansion of mobile phone business may be realized through the production line of smart mobile terminal precision parts and components. The products related to the project will be applied to the fields of consumer electronics and automobile at the same time.
Last year, there was market news that the iPhone unit was installed on the basis of Luxshare Precision Industry Co.Ltd(002475) 's acquisition of two new companies in Chinese mainland.
Recently, with regard to whether Luxshare Precision Industry Co.Ltd(002475) has received new mobile phone orders from major customers as expected this year, the company also clarified on the interactive platform that the company's business performance continues to meet customer needs and gain high recognition from customers. The company will serve customers more deeply as an important partner, and relevant business cooperation will be carried out smoothly without any failure to meet the expectations of customers and the company.
With regard to the construction of advanced semiconductor packaging and testing and intelligent mobile terminal display module product production line, 21st Century Capital Research Institute believes that it can be regarded as the expansion of Luxshare Precision Industry Co.Ltd(002475) upstream and downstream of the consumer electronics industry chain, which is conducive to the company's implementation of the development strategy of vertically integrated supply chain.
In addition, it should be pointed out that the layout of the project displayed by Tencent is mini LED technology, which also follows the pace of apple.
It pointed out that Apple launched the iPad pro with mini LED backlight technology in April 2021, which is Apple's first product equipped with mini led, and then brought the follow-up of many manufacturers. Moreover, with the gradual improvement of the coverage of intelligent connected vehicles, the growth rate of mini led in the on-board display market is expected to be considerable. According to the prediction of LED inside, the global Mini LED market will grow to USD 2.891 billion in 2025. This makes Lixun see the market prospect.
near worry and far worry
From the above two layouts, 21st Century Capital Research Institute believes that Luxshare Precision Industry Co.Ltd(002475) is eager to seek new growth points in the automotive business to hedge the risk of decline in consumer electronics.
In the consumer electronics business, it began to develop in the direction of improving the industrial chain and opening up the upstream and downstream, so as to improve the overall supply strength.
However, relying on the rapid development path brought by apple, Luxshare Precision Industry Co.Ltd(002475) can not get rid of overnight. Both the automobile and the original consumer electronics business are facing difficulties.
As far as the automobile business is concerned, the return that can be brought to Luxshare Precision Industry Co.Ltd(002475) is difficult to present in a short time. In 2020, the company's revenue from automotive interconnection products and precision components was 2.84 billion yuan, accounting for only 3.07% of its revenue. In terms of advanced technology, it also does not have high barriers and high added value. Luxshare Precision Industry Co.Ltd(002475) 's gross profit margin of vehicle related businesses is 16.52%, which is lower than other consumer electronics businesses.
" Luxshare Precision Industry Co.Ltd(002475) at present, it can only get involved in some non core businesses in the field of new energy vehicles. Starting from the connection system products is a good breakthrough, which will help it connect the new energy vehicle industry chain and prepare for the OEM of new energy vehicles in the future." Lin Zhi, chief analyst of wit display, pointed out in an interview.
According to the public information, Luxshare Precision Industry Co.Ltd(002475) automobile business mainly focuses on the automobile electrical and intelligent network connection of the "blood vessel and nervous system" of the whole vehicle. Its products include low-voltage whole vehicle harness, special harness, high-voltage harness and connector of new energy vehicle, high-speed connector, intelligent electrical box, RSU (roadside unit), on-board communication unit (TCU) and central gateway.
However, Nyingchi further pointed out that "new energy vehicles are capital intensive and technology intensive fields, Luxshare Precision Industry Co.Ltd(002475) lack the accumulation of core technologies such as new energy vehicle batteries, motors and electronic controls, and lack of understanding of the new energy vehicle industry chain. In the short term, it is impossible to open up the industry chain and build the new energy vehicle industry ecology, so it is impossible to get involved in the OEM of new energy vehicles immediately."
The market is still relatively optimistic about the growth of consumer electronics business, the main business of Lixun.
\u3000\u3000 "There are two key points in the expansion of consumer electronics of Tencent. One is the wearable device product line. At present, the product line is booming. Increasing the OEM capacity of wearable devices is conducive to obtaining more orders and improving the company's performance; the other is the consumer electronics industry chain. In order to increase the gross profit margin, Tencent needs to penetrate into the upstream of the industry chain and set foot in modules and semiconductors 。” Jimo insight analyst Wang Sen told 21st Century Capital Research Institute.
This is also the implication of the fixed increase of Lixun's involvement in packaging, display modules, mobile terminal components and system assembly and other projects: from components, modules to systems, from consumer electronics to automotive electronics, on the one hand, Lixun will horizontally expand the relevant industry fields covered by its business, on the other hand, it will vertically expand the product categories in specific business fields, Strive to become a platform enterprise. There is a long way to go.
