Today there is an IPO Subscription on the Main Board.

According to Ge Long Hui, on April 14, Heilongjiang Tianyouwei Electronics Co., Ltd. (hereinafter referred to as "Tianyouwei") is subscribing. Tianyouwei (603202) has an issue price of 93.5 yuan per share, which corresponds to a PE of 13.5 times, lower than the industry's average static PE of 27.16 times over the past month, and also lower than the average level of comparable companies' 2024 adjusted static PE in the same industry.

Given the good profit-making effect of new shares in the A-shares market in recent years, from 2025 to the present, all newly listed stocks in the A-shares market have opened higher on the first day, with an average increase of over 2 times. After hitting large A-shares new stocks, selling on the first day of listing has a high probability of profit, therefore it is recommended to actively participate in the subscription.

Tianyouwei is based in Suihua City, Heilongjiang Province. Its predecessor, Tianyouwei Limited, was established in 2003 and transformed into a joint-stock company in 2022. Tianyouwei mainly engages in the research, design, production, sales, and service of automobile instruments and gradually expands into the Asia Vets field. Its main products include electronic combination instruments, full LCD combination instruments, dual-screen instruments, and other auto electronic products and services.

In 2022, 2023, and 2024 (referred to as the "reporting period"), the full LCD combination instrument business contributed over 40% of the company's revenue, while the revenue share of dual-screen instruments exceeded 36%, representing a large proportion.

The composition of the company's main business revenue by product category, source: prospectus.

As the company's main products are auto instruments and other auto electronic products, mainly applied in the auto field, the development and production volume of the auto industry are closely related to the level of macroeconomic conditions. If the growth rate of the macroeconomy continues to slow down or experiences periodic fluctuations in the future, it may affect the company's business development.

In terms of performance, during the reporting period, Tianyouwei's revenue was approximately 1.972 billion yuan, 3.437 billion yuan, and 4.465 billion yuan, with net income approximately 0.397 billion yuan, 0.843 billion yuan, and 1.136 billion yuan.

During the reporting period, Tianyouwei's main business gross margins were 31.07%, 36.15%, and 35.34%, showing some fluctuations. The company's product gross margin is higher than the average gross margin of comparable listed companies in the industry, mainly due to certain cost and technical advantages, as well as optimization of the product structure and the rapid growth of foreign sales revenue.

The comparison of the company's main business gross margin with that of comparable listed companies in the automotive electronics sector, image source from the IPO prospectus.

Tianyouwei's main customers include well-known domestic and foreign vehicle manufacturers and auto parts suppliers, such as Hyundai Motor Group, BYD, Chongqing Changan Automobile, FAW Group, and Chery Group.

During the reporting period, sales to the top five customers accounted for more than 80% of revenue, with sales to Hyundai Motor Group accounting for 53.03%, 52.79%, and 55.56% of revenue, indicating a relatively high customer concentration and significant dependence on Hyundai Motor Group.

In this application for listing, Tianyouwei plans to invest approximately 3 billion yuan in raised funds. Based on the issuance price of 93.50 yuan per share and the issuance of 40 million new shares, the estimated total amount of raised funds is approximately 3.74 billion yuan. After deducting approximately 0.213 billion yuan (excluding VAT) in issuance costs, the estimated net amount of raised funds is about 3.527 billion yuan, to be used for automotive electronics Asia Vets factory construction projects, intelligent cockpit production base construction projects, automotive electronics R&D center construction projects, information system construction projects, and to supplement working capital.

Use of raised funds, image source: prospectus.