A-share subscription | Joint Power (301656.SZ) opens subscription and ranks first in third-party suppliers for 2024 electrical control products

On September 15, Joint Power (301656.SZ) began its initial public offering (IPO) with an issue price of 12.48 yuan per share, a subscription limit of 40,000 shares, a price-earnings ratio of 32.87 times, listed on the Shenzhen Stock Exchange, with Guotai Haitong as its sponsoring securities firm. According to the prospectus, the company is committed to becoming a global leader in smart electric vehicle components and solutions, with its main products including electric drive systems (electric control, motor, three-in-one/multi-in-one drive assembly) and power systems (on-board chargers, DC/DC converters, two-in-one/three-in-one power assemblies) as core components of power systems. The company is a leading player in the new energy vehicle power system industry, positioning itself at the core of the industry chain, and shoulders the important mission of promoting the high-quality development of China's automobile manufacturing industry. The company has taken on and participated in national key research and development programs multiple times, leading or participating in the establishment of more than 20 national standards, and leading industry breakthroughs in key technologies. The company provides power system solutions for over 40 downstream vehicle manufacturers and over 170 models. It is deeply involved in the entire lifecycle of new energy vehicles, including vehicle design, power system development, and after-sales service. The company collaborates with upstream suppliers in integrated circuits, magnetic materials, and equipment, continuously innovating in areas such as circuit design, material application, manufacturing processes, and software algorithms, aiming to promote the self-reliance and self-improvement of China's smart electric vehicle industry chain. During the reporting period, the company's major customers included ideal automobile, Guangzhou Automobile Group, Chery Automobile, Xiaomi Automobile, and Geely Group. Since the release of the "Twelfth Five-Year Plan for the Special Plan for the Development of Electric Vehicle Technology" by the State Council in 2012 and other top-level planning policies, China has guided the rapid development of the new energy vehicle industry in terms of strategy, technology pathways, and financial support. Chinese national automobile companies and domestic power system suppliers, through years of continuous investment, have gradually achieved the localization and self-reliance of new energy vehicle power systems and are moving towards industrialization, scaled production, and integration. By 2024, Chinese domestic brands will occupy a market share of over 70% for independently branded electric control and motors in the electric drive market, and over 65% market share for new energy vehicle core components. In the passenger car sector, according to NE Times statistics, in the 2024 Shanxi Guoxin Energy Corporation passenger car market, the company's electric control products accounted for approximately 10.7% market share, ranking first among third-party suppliers (second overall); motor products accounted for approximately 10.5% market share, also ranking first among third-party suppliers (second overall); drive assemblies accounted for approximately 6.3% market share, ranking fourth; on-board chargers accounted for approximately 4.5% market share, ranking eighth. In the commercial vehicle sector, the company primarily achieved large-scale sales of electric drive system-related products during the reporting period, with rapid revenue growth, positioning itself as a leader in this segment of the market. Regarding finances, for the years ending in 2022, 2023, and 2024, the company achieved operating revenues of approximately 5.027 billion yuan, 9.365 billion yuan, and 16.178 billion yuan, respectively; with net profits for the same periods reaching approximately -180 million yuan, 1.86 billion yuan, and 9.36 billion yuan, respectively.