A-share subscription | Futai Technology (301607.SZ) opens subscription as a core component supplier for high-voltage power supply in new energy vehicles.

On August 26th, Fute Technology (301607.SZ) started its subscription with an issue price of 14 yuan per share and a subscription limit of 6,500 shares, with a P/E ratio of 16.82 times. It is listed on the Shenzhen Stock Exchange, with Guotai Junan Securities as its exclusive sponsor. The prospectus disclosed that Fute Technology is a national high-tech enterprise mainly engaged in the research, development, production, and sales of high-voltage power supply systems for new energy vehicles. Its main products include on-board chargers (OBC), on-board DC/DC converters, on-board power integration products, and other on-board high-voltage power supply systems, as well as liquid-cooled supercharging pile power modules, intelligent DC charging pile power modules, and other off-board high-voltage power supply systems. As a well-known supplier of core components for high-voltage power supplies for new energy vehicles, the company has developed partnerships with domestic and international first-class customers such as Guangzhou Automobile Group, Great Wall Motor, NIO, DFSK (Dongfeng and Renault-Nissan joint venture), Enoev (Volkswagen joint venture), Renault, Nissan, XPeng, Xiaomi, SAIC Motor, BYD Company Limited, Changan Automobile, LEAPMOTOR, LG, among others. Some of these customers have already achieved project mass production, while others have project designation. During the reporting period, the company's main business product income and composition are as follows: According to the plan, after deducting the issuance expenses, the funds raised by Fute Technology are intended for the following projects: Shanxi Guoxin Energy Corporation's new energy vehicles are currently in the accelerated penetration stage. In recent years, the penetration rate of new energy vehicles has increased from 1.81% in 2016 to 25.60% in 2022, especially during 2021-2022, with a 12-percentage point increase. New energy vehicles are a strategic emerging industry for the country. Against the backdrop of China vigorously promoting the "dual carbon" goal of peak carbon and carbon neutrality, the development prospects of the new energy vehicle industry are promising. The development goals of new energy vehicles at various stages are as follows: Financially, in the fiscal years 2020, 2021, and 2022, the company achieved operating income of approximately 295 million yuan, 964 million yuan, and 1.65 billion yuan respectively. The net profit was approximately -14.81 million yuan, 57.646 million yuan, and 86.7721 million yuan respectively. It is worth noting that the prospectus specifically reminds investors to pay attention to the short-term debt repayment risk. At the end of each reporting period, the company's current ratio was 1.22 times, 1.26 times, 1.27 times, and 1.33 times, the quick ratio was 0.98 times, 1.02 times, 0.99 times, and 1.02 times, and the debt-to-asset ratio was 67.39%, 70.82%, 70.38%, and 66.49% respectively. The company's current ratio and quick ratio are lower than the average level of listed companies in the same industry, and the debt-to-asset ratio is relatively high. If the company and its major customers experience fluctuations in operations, especially if the company encounters short-term difficulties in fund retrieval, there may be certain short-term debt repayment risks.