A-share subscription | Automotive hot runner system "Little Giant" Hengdao Technology (920177.BJ) starts subscription. The product downstream applications are used in well-known car brands such as Ideal.

On April 7th, Hengdao Technology (920177.BJ) started its subscription, with an issue price of 21.8 yuan per share and a subscription upper limit of 588,600 shares, with a P/E ratio of 14.99 times. It belongs to the Beishang Exchange, and Guotai Junan Securities is its sponsor. According to the prospectus, Hengdao Technology is a national-level "little giant" enterprise specializing in new technologies, with its main product being hot runner systems, which are core heating component systems in hot runner injection molds, widely used in areas such as automotive headlights, automotive interior and exterior decorations, and 3C consumer electronics. The company has established long-term stable cooperative relationships with well-known companies such as BYD Company Limited, Sanan Optoelectronics (a wholly-owned subsidiary of Sanan Optoelectronics), Jiali Stock, Changzhou Xingyu Automotive Lighting Systems, Qingdao Hi-Tech Moulds & Plastics Technology, and Gree Electric Appliances, Inc. of Zhuhai, with downstream applications of its products into well-known automotive brands such as BYD Company Limited, SAIC Volkswagen, SAIC General Motors, Ideal, NIO, and Chery. According to QYResearch statistics, the global hot runner market sales volume is expected to increase from 189.24 billion yuan in 2019 to 231.54 billion yuan in 2024. In the future, with the growth trend in downstream industries such as the automotive industry, 3C consumer electronics, home appliances, and medical industries, as well as the increasing demand for high-performance products in the downstream market, hot runner systems will further penetrate into the injection molding field, leading to the growth of operating income. It is estimated that the global hot runner market sales volume will increase to 301.68 billion yuan by 2030. According to QYResearch's statistics, by 2024, China's hot runner sales volume and market sales revenue will account for 46.46% and 34.02% of the global market, respectively. The domestic hot runner sales revenue is expected to increase from 60.42 billion yuan in 2019 to 78.76 billion yuan in 2024. With the improvement in the utilization rate of hot runners in China, the domestic market sales scale is expected to maintain stable growth. It is estimated that the domestic hot runner sales revenue will reach 11.43 billion yuan by 2030. During the reporting period, the company's main revenue source for hot runner products came from the automotive sector. In 2024, the global market revenue of hot runner systems in the automotive sector (including headlights, interior and exterior decorations, etc.) was 96.78 billion yuan, and it is estimated to increase to 132.93 billion yuan by 2030. The domestic automotive hot runner market has maintained stable growth in recent years, with the QYResearch study showing that the market was worth 27.16 billion yuan in 2024, and is expected to reach 41.06 billion yuan in sales revenue by 2030. In terms of finances, the company is expected to achieve operating revenues of approximately 168 million yuan, 234 million yuan, and 297 million yuan in 2023, 2024, and 2025, respectively, with net profits of approximately 48.677 million yuan, 68.8718 million yuan, and 79.2064 million yuan during the same period.