A-share subscription | ZhiXin shares (603352.SH) open for subscription, covering the demand for full car welding parts in the automotive industry.

On January 6th, Zhixin Group (603352.SH) launched its IPO with an issue price of 21.88 yuan per share, and a maximum subscription limit of 18,000 shares. The P/E ratio is 26.85 times, and it is listed on the Shanghai Stock Exchange. Shenwan Hongyuan Group Securities is its sponsor. The prospectus reveals that Zhixin Group's main business is the development, processing, production, and sales of automotive stamping parts and related molds. Its main products are automotive body stamping parts and related tooling molds, specializing in the manufacturing of cold stamping parts, hot-formed parts, and welding components, which can cover the demand for automotive body stamping parts. The company has become a first-tier supplier for well-known vehicle manufacturers such as Chongqing Changan Automobile, GEELY AUTO, Changan Ford, NIO, Ideal Auto, BYD Company Limited, Great Wall Motor, and LEAPMOTOR, successfully supporting suppliers like Contemporary Amperex Technology, Inalfa, and Webasto. According to the International Organization of Motor Vehicle Manufacturers (OICA) statistics, China's market share stands out, having become the country with the highest automobile production in the world. By 2024, China's automobile production accounted for 34.11% of the global total, representing over one-third. From the perspective of the global market competition, the global automotive parts industry is dominated by traditional automotive industrial powers like the United States, Germany, and Japan, while the comprehensive strength of developing countries' parts enterprises in the international market is relatively limited. With the gradual saturation of the European and American automotive consumer markets and the globalization of the automotive parts industry chain, emerging markets such as China and India, with their advantages of large market capacity, rapid consumption growth, and low labor costs, have attracted many international automotive giants to build factories and layout in these countries. Companies in emerging car markets are gradually entering the international automobile manufacturers' parts support system with outstanding cost advantages and good services. Financially, in 2022, 2023, and 2024, the company achieved operating income of approximately 2.091 billion yuan, 2.564 billion yuan, and 3.088 billion yuan respectively; and net profits of approximately 70.691 million yuan, 132 million yuan, and 204 million yuan respectively during the same period.