A-share subscription | Zhixin Co., Ltd. (603352.SH) opens subscription to cover the needs of all automobile welding parts

The Zhitong Finance App learned that on January 6, Zhixin Shares (603352.SH) began subscription. The issuance price was 21.88 yuan/share. The maximum subscription price was 18,000 shares, with a price-earnings ratio of 26.85 times. It belongs to the Shanghai Stock Exchange, and Shenwan Hongyuan Securities is its sponsor.

According to the prospectus, Zhixin Co., Ltd. specializes in the development, processing, production and sale of automotive welding parts and related molds. Its main products are automotive white body welding parts and related tooling molds. It specializes in manufacturing cold stamping parts, thermoformed parts and welding parts, which can cover the needs of all automobile welding parts. The company has become a first-class supplier to well-known automakers such as Changan Automobile, Geely Automobile, Changan Ford, NIO Auto, Ideal Auto, BYD, Great Wall Motor, and Zero Sports Auto, successfully supporting well-known parts suppliers such as Ningde Times, Ina, and Webasto.

According to statistics from the International Automobile Manufacturers Association (OICA), the Chinese market share is particularly prominent. It has become the country with the highest automobile production in the world. In 2024, China's automobile production accounts for 34.11% of the world's total automobile production, accounting for more than one-third.

Judging from the competitive pattern of the global market, the global auto parts industry is currently dominated by traditional automobile industry powers such as the United States, Germany, and Japan, and the comprehensive strength of developing country parts companies in the international market is relatively limited. With the gradual saturation of the European and American automobile consumer markets and the global expansion of the auto parts industry chain, emerging automobile markets such as China and India have attracted many international automobile giants to build factories in such countries with advantages such as large market capacity, rapid consumption growth, and low labor costs. With outstanding cost advantages and good service, companies in the emerging automobile market are gradually entering the parts support system of international automakers.

On the financial side, in 2022, 2023 and 2024, the company achieved operating income of approximately RMB 2,091 billion, RMB 2,564 million and RMB 3,088 billion respectively; net profit for the same period was approximately RMB 706.91 million, RMB 132 million, and RMB 204 million respectively.