Zero car delivery to the Hong Kong stock exchange, the old qualification “new force” arrived late. Recently, Zero run automobile submitted its IPO prospectus on the Hong Kong stock exchange, which is expected to become the fourth new force of Chinese car making listed in Hong Kong. The company was founded in 2015. At present, there are three mass-produced models S01, T03 and C11. The annual sales volume in 2001 reached 44000, and the growth rate has always been prominent among the new forces.
The company’s founders Zhu Jiangming, Fu Liquan and vice presidents Cao Li and Zhou Hongtao are from intelligent security leader Dahua Technology. President Wu Baojun once worked in Zhongcheng automobile insurance and GAC. The other core management are also from well-known technology companies, automobile enterprises and financial institutions. In 2021, the total revenue of the company was 3.13 billion yuan and the net loss was 2.85 billion yuan. The company is still in the investment period, and the gross profit margin has not been confirmed. Listing in Hong Kong is expected to increase the company’s cash and support subsequent R & D and other expenses.
Rapid expansion: positioning at the middle and high end and exploring the middle of the brand. 1) Product end: among the three existing models, the pure electric sedan S01 and the mini car T03 face the price band of 120 Yihua Healthcare Co.Ltd(000150) 000 and 6 Shenzhen Tagen Group Co.Ltd(000090) 000 respectively. The medium-sized suvc11 mass produced in September 2021 is a landmark product for the company to step into the price band of more than 150000. In the future, the company will focus on the medium and high-end smart car with a price of 15 Fawer Automotive Parts Limited Company(000030) 0000, 2022q3, and the company will mass produce the medium and large car C01 based on this positioning. In the future, the company will continue to anchor the medium and high-end market and launch 7 new models by the end of 2025, including 4 SUVs / 2 cars / 1 MPV. 2) Capacity side: the company relies on its own Jinhua plant with an annual capacity of 200000 units. The new Hangzhou plant is expected to be put into operation in 2023. 3) Sales side: at present, the company mainly focuses on franchise stores and also has direct stores. At the end of 2021, the total number of stores reached 291. The company plans to continue to encrypt its sales network in the future to promote sales.
Distinctive features: the goal is the star sea of “global self-study”. Zero run’s self positioning is a technology-based intelligent electric vehicle enterprise with global self-research ability: 1) three electric terminals: the intelligent power system leapmotorpower carried by C11 has excellent driving performance. The company’s self-developed centralized electronic EEA and electric drive system is expected to take the lead in carrying CTC battery chassis integration technology on C01 in 2022q3. 2) In 2021, lingzhi Automobile Co., Ltd. took the lead in carrying the chip produced by Lingzhi enterprise for the first time. Based on the chip, the company complements the algorithm capability, and its self-developed platform leapmotorpilot3 0 it is planned to provide OTA with functions such as high-speed assisted driving, remote control and automatic parking in 2022. In 2024, the company plans to realize the pilot assisted driving function of urban roads. 3) Cockpit end: the company leapmotoros provides intelligent interactive functions and open Internet of vehicles services, and OTA will have more functions in the future.
The track is vast, and the intelligence of new forces continues to lead. We predict that the penetration rate of new energy passenger vehicles may reach 40% and the sales volume of new energy passenger vehicles may be close to 9 million units in 2025. In the vast track, we are optimistic about the acceleration of models of new forces such as Xiaopeng, Weilai, ideal and zero running, as well as the outstanding self-research and exploration in intelligence. We expect that intelligence will become the long-term competitive advantage of new forces. Recommend ideal automobile-w (2015. HK), Xiaopeng automobile-w (9868. HK) and Weilai SW (9866. HK), and pay attention to the follow-up listing process of Zero run automobile.
Risk warning: the risk of model R & D and sales falling short of expectations, the risk of upstream parts supply fluctuation, and the risk of intelligent driving technology iteration falling short of expectations
