A-share subscription | Honghai Technology (920108.BJ) opens subscription and establishes cooperation relationship with major customers such as Midea and Haier.

On January 17, Honghai Technology (920108.BJ) started its subscription with an issue price of 5.57 yuan per share and a subscription limit of 950,000 shares. The price-earnings ratio is 14.99 times. It belongs to the Beijing Exchange, with China Securities Co., Ltd. as the sponsor (lead underwriter). The prospectus shows that Honghai Technology's main business is the research and development, design, manufacturing, and sales of components for home appliances such as air conditioning structural parts, heat exchangers, and display components. Honghai Technology has a team of experienced mold developers in the industry, with outstanding capabilities in independent and synchronous mold development. They are able to meet diverse and non-standard customer needs, specializing in the design and manufacturing of precision continuous molds, stretch molds, large, medium, and small forming molds, as well as thick plate punching dies. The company's innovative mold technology such as mold tooth tapping, mold riveting, and mold monitoring can improve the efficiency and quality of the mold manufacturing process, reduce production costs, and establish a competitive advantage. The company was one of the earliest in the country to shift its production process from single-process intensive to continuous mold and robotic automation, improving product processing consistency, intelligence, and precision, enhancing production efficiency and capacity, and raising downstream customers' assembly efficiency and yield. The company was also one of the earlier enterprises in China's home appliance structural components production industry to develop and use energy storage welding technology, which features high heating rates, low energy consumption, enhanced welding strength, and reduced weld detachment risk. In terms of heat exchanger products, the company has accumulated techniques such as ultra-high precision double-position automatic feeding, non-shrinkage servo double-position expanding tube, and non-chip cutting ring cleaning-free processes, enabling the automation of air conditioning heat exchanger production, streamlining the required workstations and processes, strengthening production line adaptability and flexibility, improving product yield, and environmentally friendly production. Honghai Technology has complete production facilities, high automation levels in production, comprehensive testing methods, and a workforce with rich experience in production, management, and research and development. With top-notch product quality resulting from its own technological innovation, superb production management capabilities, and fast responsiveness, the company has established long-term stable cooperative relationships with major customers such as Midea, Haier, TPV Technology, etc. By deeply integrating its production with downstream customers' timely supply and production modes, the company operates on a sales-based production model, allowing for rapid and accurate delivery of products based on customer demand, down to hourly precision. This enhances production efficiency, while ensuring quality and quantity to fulfill customer orders. Over the years, the company has been awarded "Global Strategic Partner", "Golden Magic Cube", "Excellent Supporting Award", "Best Partner", "Excellent Module Supplier", and other outstanding supplier awards by core customers. In terms of finances, in 2021, 2022, 2023, and January-June 2024, Honghai Technology achieved operating income of approximately RMB 188 million, RMB 253 million, RMB 350 million, and RMB 231 million respectively. The net profits for the same periods were approximately RMB 25.63 million, RMB 26.66 million, RMB 48.72 million, and RMB 45.24 million respectively.