A-share IPO | Lin Tai New Materials (920106.BJ) opens IPO specializing in automotive automatic transmission friction plates

On December 10th, Lintai New Material (920106.BJ) started its subscription, with an issue price of 19.82 yuan per share and a subscription cap of 277,800 shares. The price-earnings ratio is 17.94 times, and it belongs to the Beijiao Exchange, with Soochow as its exclusive sponsor. According to the prospectus, Lintai New Material is a specialized new enterprise that focuses on the research, production, and sales of friction plates for automatic transmissions for vehicles, with its main products being wet paper-based friction plates and dual clutch plates for automatic transmissions including hydraulic automatic transmissions (AT), continuously variable transmissions (CVT), dual clutch transmissions (DCT), hybrid power special transmissions (DHT), and pure electric vehicle special transmissions (DET), among others. It is understood that the funds raised by Lintai New Material, after deduction of issuance expenses, are intended for the following projects: Financially, in the fiscal years 2021, 2022 and 2023, the company's operating income is expected to be approximately 132 million yuan, 176 million yuan and 207 million yuan respectively. The net profits are expected to be approximately 16.42 million yuan, 24.78 million yuan and 49.18 million yuan respectively. It is important to note that the prospectus specifically warns investors to pay attention to the risks associated with fluctuations in gross profit margins. The company's main business is the research, production, and sales of friction plates for automatic transmissions for vehicles. During the reporting period, the gross profit margins for the main business were 33.62%, 38.32%, 45.21% and 45.48% respectively, showing an upward trend. Since 2024, the decline in prices of new energy vehicles and traditional fuel vehicles has intensified competition in the automobile market, causing significant price competition pressure for most automobile manufacturers. The company's products are core components of automobiles, and their production and sales are affected by fluctuations in the automobile industry. If future competition in the automobile market intensifies, downstream automobile manufacturers reduce retail prices, which may lead to a decrease in the company's product prices and gross profit margins. Additionally, if the company is unable to effectively control product costs due to a decrease in unit price or an increase in raw material prices, or if the company fails to timely introduce technologically advanced products to participate in market competition, it could have an adverse impact on the company's gross profit margin and profitability.