A-share subscription | Huihan Shares (301600.SZ) opens subscription. The company's vehicle networking TBOX has a market share of 5.59% in the Chinese passenger car market.

On September 2nd, Huihan Stock (301600.SZ) started its subscription with an issue price of 39.84 yuan per share, a subscription limit of 17,500 shares, a P/E ratio of 22.57 times, listed on the Shenzhen Stock Exchange, with GF SEC as the sponsor and lead underwriter. The prospectus shows that Huihan Stock is a technology service provider dedicated to providing intelligent network solutions for smart cars and industrial IoT customers. The company is mainly engaged in the research, development, production, and sales of car networking intelligent terminals and IoT intelligent modules, while also providing software and technical services to customers. In the field of car networking, Huihan Stock focuses on the upgrade of automotive electronic and electrical architecture and the digital transformation of the automotive industry, establishing long-term stable cooperation relationships with leading car manufacturers and their first-tier suppliers in the smart car industry. The company provides car networking intelligent terminals, IoT intelligent modules, and solutions to large independent brand car manufacturers and industry-leading enterprises such as SAIC Group, Chery Automobile, GEELY AUTO, BYD Company Limited, Great Wall Motor, Guangzhou Automobile Group, Ideal Automobile, NIO, Contemporary Amperex Technology, Huizhou Desay SV Automotive, Delphi, and Anbotek. At the same time, the company's intelligent modules are also used in models of well-known domestic and foreign brands such as Volkswagen, Toyota, General Motors, and Great Wall Motor. In other industrial IoT fields, IoT intelligent module products are used in the industrial IoT market, with Huihan Stock providing intelligent modules and intelligent units to global renowned IoT solution providers such as Microchip, Sierra, and Cerence. According to research data from Zosi Automotive Research, the installation volume of TBOX for passenger cars in China in 2023 is estimated to be 16.27 million units. Combining with domestic passenger car sales data, it can be calculated that the market share of Huihan Stock's car networking TBOX in the Chinese passenger car market in 2023 is 5.59%, and in the independent brand passenger car market, it is 8.78%. Financially, in 2021, 2022, and 2023, Huihan Stock's operating income was approximately 422 million yuan, 580 million yuan, and 813 million yuan respectively, with a net profit of approximately 59.1964 million yuan, 85.6261 million yuan, and 128 million yuan during the period. It is worth noting that Huihan Stock mentioned in the prospectus that there is a risk of intensified market competition. First-tier suppliers of complete vehicle manufacturers have relatively high entry barriers, and the switching cycle of suppliers is relatively long. Once a complete vehicle manufacturer determines a component supplier, they generally will have long-term stable cooperation and will not easily switch suppliers. However, if the company cannot keep up with industry trends, accurately grasp technological upgrades and product iteration directions, and cannot provide products and solutions better than those of the complete vehicle manufacturers or other companies, the complete vehicle manufacturers may turn to completely self-developed production or purchase related products from other companies, leading to the risk of market contraction, intensified competition, and product and technology substitution for the company.