Convertible bonds issued by the company
Leading technology, serving the world and making the rating show value
Zhong Peng Xin Ping [2022] No. Z [269] 01 Mingxin Automotive Leather Co.Ltd(605068) 2022 credit rating report on public issuance of A-share convertible corporate bonds
Rating results rating Perspective
\uf0a7 China Securities PENGYUAN rated Mingxin Automotive Leather Co.Ltd(605068) (hereinafter referred to as “mingxinxu subject credit rating AA Teng” or “company”, stock code ” Mingxin Automotive Leather Co.Ltd(605068) . Sh”). The total amount to be issued this time does not exceed the bond credit rating of 673 million yuan (including) convertible corporate bonds (hereinafter referred to as “bonds of the current period”) with a stable rating prospect of AA – and the credit rating is AA -, This grade reflects the high security of the current bond and the low default risk on the rating date 2022-3-15.
\uf0a7 the evaluation of the above grade is based on the consideration that the company, as a leading supplier of new automotive interior materials in China, has certain competitive and technical advantages, the company’s products are equipped with medium and high-end passenger vehicles, and the future orders are guaranteed, After listing, the financing channels of the company are widened and the capital strength is enhanced; At the same time, CSI PENGYUAN is also concerned that the prosperity fluctuation of the automobile industry may have a certain impact on the company’s operation. The company is faced with the risk of price fluctuation of raw materials, high concentration of direct customers and terminal vehicle factory customers, and the benefits of super fiber products are less than expected.
Issuance scale: no more than 673 million yuan (including) future outlook
Issuance period: 6 years \uf0a7 the company has certain technical strength and market competitiveness, and its business is relatively stable. Comprehensive test repayment method: pay interest once a year and return the principal and interest when due
Considering the interest of the last year, CIC PENGYUAN gave the company a stable credit rating outlook.
Purpose of issuance: the main financial data and indicators of dingdaochao company with an annual output of 8 million square meters (unit: 100 million yuan) fiber new material intelligent manufacturing project and supplementary working capital
Project 2021.9 20202019 2018 total assets 24.46 21.33 9.43 7.05 attributable to parent owner’s equity 17.25 17.06 6.14 4.34 total debt 4.04 0.80 0.99 1.27 Operating income 5.74 8.08 6.58 5.70 EBITDA interest cover – 137.55 65.18 20.73 net profit 1.43 2.21 1.79 1.08 net cash flow from operating activities 1.46 1.00 1 45.1.53 contact information sales gross profit margin 44.39% 49.14% 45.25% 37.92% EBITDA profit margin — 37.04% 37.05% 27.04% return on total assets — 16.72% 25.62% 18.20% project leader: Xu Ningyi asset liability ratio 29.47% 20.01% 34.96% 38.44% [email protected]. Net debt / EBITDA —2.26 0.32 0.43 total debt / total capital 18.96% 4.49% 13.91% 22.69% project team members: Ge Tingting FFO / net debt —33.71% 196.35% 141.70% [email protected]. Quick ratio 2.20 3.86 1.70 1.00 cash short-term debt ratio 2.50 9.60 0.34 0.58 Tel: 075582872897 source: the company’s three-year audit report from 2017 to 2019, The 2020 audit report and unaudited financial statements from January to September 2021 were sorted out by CSI PENGYUAN
Advantages \uf0a7 as a leading supplier of new automotive interior materials in China, the company has certain competitive and technical advantages.
As a leading supplier of new automotive interior materials in China, the company’s products are mainly equipped with medium and high-end passenger car seats, steering wheel, instrument panel and door panel. It has the ability of collaborative development with vehicle manufacturers, and has entered the supply chain system of vehicle manufacturers such as FAW Volkswagen, SAIC GM and German Volkswagen. By the end of 2020, the company has obtained 73 patents and has successfully mastered chrome free tanning, low VOC emission and other automotive leather industry technologies, with certain technical and competitive advantages.
\uf0a7 the company’s products are equipped with medium and high-end models of passenger cars, and future orders are guaranteed. The company’s automotive leather products have been successfully matched with mass-produced models such as Audi q5l, new Audi Q3, tanyue and Tange. Considering the characteristics of long assessment time and high economic cost of the supplier system of automobile manufacturers, the company’s products will generally be matched with the whole life cycle of designated models without major disputes or mass product liability problems. Therefore, the product viscosity is high, and as of the date of this report, the company has abundant orders on hand, It helps to enhance the company’s ability to resist risks.
\uf0a7 after listing, the capital strength of the company has been enhanced and the financing channels have been widened. The company’s initial public offering of shares in 2020 raised 872 million yuan of net funds, and the owner’s equity of the company increased from 614 million yuan at the end of 2019 to 1.725 billion yuan at the end of September 2021. The capital strength was enhanced. At the same time, the financing diversification of the company was improved and the financing channels were widened after listing. Pay attention to the risk of prosperity fluctuation of the automobile industry. The automobile industry has strong cyclical characteristics. From 2019 to 2020, the growth rate of China’s automobile sales showed a negative growth trend. Although the automobile sales stopped falling and rebounded in 2020, the residents’ leverage ratio remained high, causing a certain crowding out effect on automobile consumption, and the lack of core still exists in the short term. The fluctuation of automobile market prosperity will be transmitted to the automobile parts industry through vehicle manufacturers, So as to have a certain impact on the production and operation of the company. \uf0a7 the company faces the risk of price fluctuation of raw materials. From 2018 to 2020, direct materials accounted for about 70% of the company’s operating costs, accounting for a relatively high proportion, of which the main materials are leather and chemical materials. Since the second quarter of 2020, the prices of the two have fluctuated and increased. Considering the limited ability of auto parts manufacturers to transfer prices to the vehicle factory and the annual reduction policy of the vehicle factory, if the price of raw materials continues to fluctuate and rise in the future, it will bring certain cost control pressure to the company. In addition, the company mainly relies on imports for leather and chemicals, so it is necessary to pay attention to the impact of exchange rate changes on costs.
\uf0a7 the risk of high concentration of the company’s direct customers and terminal vehicle factory customers. From 2018 to 2020 and from January to June 2021, the company’s sales amount from the terminal vehicle manufacturer FAW Volkswagen Co., Ltd. (hereinafter referred to as “FAW Volkswagen”) accounted for about 80% – 90% of the main business revenue, and the sales amount of the top five direct customers accounted for more than 80% of the total sales. In the future, if the market demand of FAW Volkswagen changes or the sales of supporting models are less than the market expectation, It will have a great impact on the production and operation of the company. \uf0a7 the risk that the benefits of the super fiber project are less than expected. The production capacity of the company’s super fiber project expands rapidly. The intelligent manufacturing project of all water-based Dingdao super fiber new materials with an annual output of 2 million square meters and the intelligent manufacturing project of all water-based Dingdao super fiber new materials with an annual output of 8 million square meters (hereinafter referred to as the “raised investment project”) constructed by Mingxin Menorca (Jiangsu) new materials Co., Ltd. will increase the production capacity of super fiber products by 10 million square meters. Considering that the acceptance of super fiber automotive leather by car buyers is still in the stage of being educated, whether the super fiber production capacity can be fully digested in the future is greatly affected by market demand, there is a certain uncertainty, and there is a risk that the project benefit is less than expected. The rating method and model are applicable to this rating
Rating method / model name version number
General credit rating method and model for industrial and commercial enterprises cspyffmx2021v1 0 external special support evaluation method cspyff2019v1 0 note: the above rating methods and models have been disclosed in the rating model scoring table and results on the official website of CSI PENGYUAN
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