A-share subscription | Huazhijie (603400.SH) opens subscription and is a partner of well-known companies such as Baide Group and TTI Group

The Zhitong Finance App learned that on June 10, Huazhijie (603400.SH) began the subscription. The issue price was 19.88 yuan/share. The maximum subscription price was 0.8 million shares, with a price-earnings ratio of 13.05 times. It belongs to the Shanghai Stock Exchange, and CITIC Construction Investment Securities is its sponsor.

According to the prospectus, Huazhijie is positioned in the intelligent control industry. It is a supplier dedicated to providing intelligent, safe, and precise key functional components for products in the fields of power tools and consumer electronics. The company is mainly engaged in R&D, production and sales of components in the fields of power tools and consumer electronics. The company's main products include smart switches, intelligent controllers, brushless motors and precision structural parts for power tools, as well as precision structural parts and switches for consumer electronics.

The company has formed 32 underlying technology combinations centered on “low resistance, low heat dual MOSFET circuit technology”, “non-detachable update program burning technology”, and “dual motor and control system technology” around the fields of lithium battery power tools and consumer electronics, which can be further expanded to various fields such as smart homes and new energy vehicles.

The company has established long-term and stable cooperative relationships with well-known domestic and foreign power tools and consumer electronics brands and manufacturers, and has become a partner of well-known companies such as Baide Group, TTI Group, Jiashida Group, Makita Group, and Delta Group.

The company is located in an industry with a high degree of marketization and fierce market competition. China's power tool industry has developed rapidly in the process of undertaking international division of labor and transfer, while driving the development of power tool parts and supporting industries in the upstream and downstream industrial chains. It has now become an important supplier of electric tools and components in the world and a global power tool production base. The market concentration in the power tool industry is high. The quality requirements of power tool manufacturers are generally higher than general industry standards. After passing the certification of qualified suppliers of power tool manufacturers, parts manufacturers can maintain long-term stable cooperation with power tool manufacturers and occupy a certain market share.

As one of the main drafting units, the company participated in the drafting of many industry standards in the field of electronic switches in China. The company's laboratory obtained eyewitness testing laboratory qualifications from well-known institutions such as TÜV in Germany and UL in the US, and proposed integrated product solutions focusing on the pain points and difficulties of the power tool industry. It has received honors such as China's Top 100 Electronic Components Companies, Jiangsu Provincial Enterprise Technology Center, Suzhou Industrial Design Center, Suzhou Municipal People's Government Certified Enterprise Technology Center, and Wuzhong District's 2020 Advanced Manufacturing Transformation and Upgrading Enterprise.

On the financial side, in 2022, 2023, and 2024, Huazhijie achieved operating income of approximately RMB 1,019 million, RMB 937 million, and RMB 1,230 million respectively, and net profit of approximately RMB 101 million, RMB 121 million, and RMB 154 million respectively.