A-share subscription | Yongli Precision (920136.BJ) opens subscription. The national market share of automotive shock absorber pipe products is about 30%.

On June 24th, Yongli Precision (920136.BJ) started accepting applications for subscription, with an issue price of 19.28 yuan per share and a subscription limit of 900,000 shares. The price-earnings ratio is 14.99 times, and it belongs to the North Stock Exchange, with Ping An Securities as its sponsor institution. According to the prospectus, the company is a national high-tech enterprise mainly engaged in the research and development, production, and sales of precision steel tubes and tubular parts for automobiles. It is one of the earliest enterprises in China to enter the automotive precision steel tube industry and establish large-scale production. The company's subsidiary, Jiaxing Yongli, is a national specialized and new "small giant" enterprise and the manufacturing single champion enterprise in Zhejiang Province. Through years of technical accumulation, the company has developed into one of the few enterprises in China that can comprehensively apply products to core components of automobile chassis systems, steering systems, engine systems, and other automotive assemblies. The company's main products include high-strength twin-tube shock absorber components, single-tube shock absorber components, and other chassis system products used in automotive shock absorbers. The company's electronically controlled shock absorber porous components are one of the core products that have been mass-produced and applied in China's new generation of semi-active and active shock absorbers, thereby promoting the localization process in this field. After years of steady development, the company has become a well-known core enterprise in the field of automotive precision steel tubes and tubular parts. Over the past thirty years since its establishment, the company has established long-term and stable cooperation relationships with well-known enterprises in the industry through its advantages in technology research and development, product innovation, quality management, and customer service. The company's customers include well-known domestic and foreign automotive parts suppliers and OEMs, such as Tenneco, BYD Company Limited, Mando, Ansteimo, ThyssenKrupp, HZS, KYB, and Jiangsu Bojun. The products are ultimately applied to major automotive brands such as Mercedes-Benz, BMW, Volkswagen, Honda, Toyota, as well as new energy vehicles like BYD, T brand, Ideal, and Geely. According to the company's calculation, the company's market share of automotive shock absorber components in the national OEM market was approximately 30% during the reporting period. Since 2018, the company has begun to expand its products to apply to new energy brands and models, participating in the development of related components for new models in advance, and achieving good results in product adaptability. With the rapid development of domestic new energy vehicles in recent years, during the reporting period, the proportion of the company's main products used in new energy vehicles has rapidly increased to about 50%, covering the mainstream models of domestic new energy vehicle companies. The company will continue to strengthen cooperation with high-quality customers and continuously expand the application of precision tube products in core automotive components. Financially, the company is expected to achieve operating income of approximately 508 million yuan, 568 million yuan, and 540 million yuan, respectively, in 2023, 2024, and 2025. The net profit for the same period is expected to be approximately 92.9483 million yuan, 94.806 million yuan, and 109 million yuan, respectively.