Recently, the A-share fruit chain faucet Luxshare Precision Industry Co.Ltd(002475) has operated frequently. First, it plans to establish a joint venture with Chery to set foot in the manufacturing business of new energy vehicles; Later, it launched a fixed increase fund-raising plan of no more than 13.5 billion yuan, of which 2 billion yuan was invested in two auto parts businesses.
A series of actions of Luxshare Precision Industry Co.Ltd(002475) have also attracted the attention of institutional investors. On February 13 and February 22, 455 institutions participated in the two teleconferences of Luxshare Precision Industry Co.Ltd(002475) (Note: institutions repeatedly participated in the two meetings), including Fu Pengbo, Feng Mingyuan, Xie Zhiyu, Zhu Shaoxing and other well-known fund managers.
Data show that as of the noon closing on February 24, Luxshare Precision Industry Co.Ltd(002475) fell 0.35%, with a total market value of 303.3 billion yuan.
13.5 billion fixed increase attracted market attention
On February 23, Luxshare Precision Industry Co.Ltd(002475) disclosed the record of investor relations activities, which showed that the teleconference on February 22 attracted 234 institutions. Among them, Fu Pengbo, the fund manager of Ruiyuan fund, participated in the research.
Luxshare Precision Industry Co.Ltd(002475) chairman and general manager Wang Laichun, chief operating officer Li Bin, deputy general manager and Secretary Huang Dawei and others attended the meeting.
On February 21, Luxshare Precision Industry Co.Ltd(002475) announced that it planned to raise no more than 13.5 billion yuan.
Wang Laichun said that the company’s raised investment project involved an amount of 13.5 billion yuan, of which 9.95 billion yuan planned specific projects, and 3.55 billion yuan was used to supplement working capital. The amount of 13.5 billion yuan is calculated from the technical level and financial capital level in combination with the development needs of the company in the next five years, which will meet the development needs of six projects in the next five years.
In the communication with investors, the management said that unlike many consumer electronics products, automotive products need to be synchronized with customers in the development stage. Whether it is high-voltage, low-voltage or other products, the company needs to be closely combined with the whole system, and the product development cycle is longer. In addition, the customers of automobile business are more dispersed than consumer electronics, and the technology precipitation of automobile Tier1 (primary supplier of automobile factory) manufacturers is usually deeper.
It is worth noting that the fixed increase fund-raising plan of Luxshare Precision Industry Co.Ltd(002475) will invest 2 billion yuan in two automobile related projects. Wang Laichun said that the new energy vehicle high voltage connection system product line construction project and intelligent vehicle connection system product line construction project are auto parts projects, with 2 billion yuan mainly used for Tier1 business, including special harness, high / low voltage harness, charging gun and vehicle harness. In addition, we also see some potential product opportunities, which strive to make the company become the world’s leading Tier1 manufacturer.
cooperate with Chery to “build cars”
survey of several well-known fund managers
According to Wang Laichun, the raised investment project began planning at an early stage. According to the internal operation and the approval process of local governments, the announcement was completed until February 21, which has no inevitable relationship with the content of the announcement on February 11. Therefore, there is no deliberate consideration of simultaneous announcement.
On the evening of 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, specializing in the R & D and manufacturing of new energy vehicles. In addition, the controlling shareholder of the company, Lixun Co., Ltd., plans to purchase the relevant equity of Chery with RMB 10.054 billion.
On the afternoon of February 13, Luxshare Precision Industry Co.Ltd(002475) also held a teleconference, which attracted 221 institutions such as Anxin fund, Goldman Sachs asset management and Gaoyi assets. Among them, Feng Mingyuan, fund manager of Cinda Aoyin fund, Xie Zhiyu, fund manager of Xingzheng Global Fund, and Zhu Shaoxing, fund manager of Wells Fargo fund participated in the telephone survey.
Wang Laichun said that as an investor of Chery holdings, Luxshare Precision Industry Co.Ltd(002475) does not manufacture complete vehicles, but cooperates with the ODM (original design and manufacturing) business of Chery new energy to build vehicles, aiming to seize the opportunity window and strive to become the world’s leading tier 1.
As for how to treat the car manufacturing of technology giants, Luxshare Precision Industry Co.Ltd(002475) said that it would strive for this opportunity. Through in-depth understanding of Chery’s present and future, it is obvious that Chery has invested a lot in hardware and software including chassis, and will also play a synergistic effect on the joint venture and other core customers of Luxshare Precision Industry Co.Ltd(002475) in the future.
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, will not blindly follow the wind and build cars, and obtain the best results in the limited resource investment through active selection.
