A-share Subscription | Automotive Seat and Interior/Exterior Trim Manufacturer Shuangying Group (920059.BJ) Opens Subscription, Products Covering Models Such as the Ideal L9

On August 10, Shuangying Group (920059.BJ) began its subscription, with an issue price of 11.13 yuan per share, a subscription limit of 1.6159 million shares, and a price-to-earnings ratio of 12.99 times. It is listed on the Beijing Stock Exchange, with Sinolink serving as its sponsorship institution. The prospectus indicates that Shuangying Group has been deeply involved in the automotive seating and interior/exterior decoration fields for many years and is a high-tech enterprise mainly engaged in the development, production, and sales of automotive seats and interior/exterior components. The company's client base includes mainstream automobile manufacturers such as SAIC-GM-Wuling, Chongqing Changan Automobile, GEELY AUTO, and Changan Kuayue, as well as internationally renowned first-tier automotive parts suppliers like Faurecia, Lear Corporation, and Aichi. Additionally, it includes well-known new energy vehicle manufacturers such as BYD Company Limited and Chongqing Sokon Industry Group Stock. Its product matrix covers multiple mainstream market models, including Wenjie M5, M7, M9, Avita 11, 12, 06, Qiyuan Q07, Great Wall Pao, Tank 300, 500, Li Xiang L7, L9, NIO ES6, Geely Xingyuan, Geely Panda mini, Lynk & Co, Volvo, Changan Shenlan, and Changan CS series, as well as the SAIC-GM-Wuling Bingo series, Baojun series, Hongguang series, and Rongguang series. According to a research report issued by Gaishi Consulting, the sales volume of new energy vehicles is expected to reach 17 million units by 2024, with a compound annual growth rate of 42.64% from 2018 to 2024. A joint report published by McKinsey and the China Electric Vehicle Hundred Talents Association indicates that the global new energy vehicle market is in a period of rapid growth, with the global passenger car market expected to exceed 80 million units by 2030, where the penetration rate of new energy vehicles will reach around 50%. In terms of finances, in the fiscal years 2023, 2024, and 2025, the company is projected to achieve operating revenues of approximately 2.205 billion yuan, 2.580 billion yuan, and 3.743 billion yuan, respectively. During the same period, the net profits are expected to be approximately 111 million yuan, 98.909 million yuan, and 151 million yuan. Shuangying Groups prospectus highlights liquidity risks. At the end of each reporting period, the company's bank loans (excluding discounted bills and accrued interest) were 616.0614 million yuan, 595.6590 million yuan, and 635.6708 million yuan, with current ratios of 0.99, 1.13, and 1.08, and quick ratios of 0.82, 0.85, and 0.76, respectively. The company's bank loan balance is relatively large, and both the current ratio and quick ratio are overall not high. At the end of each reporting period, the net cash flows from operating activities were -75.8515 million yuan, -233.3607 million yuan, and 145.4322 million yuan, with the first two years remaining negative, mainly due to bills being discounted that did not meet the conditions for cessation of recognition.