A-share subscription | ZJTION opens subscription for suppliers of well-known companies such as GAC Group and Li Auto

According to Zhitong Finance APP, on March 28, ZJTION (603210.SH) opened for subscription, with an issue price of 8.60 yuan per share, a subscription limit of 27,000 shares, and a price-to-earnings ratio of 18.60 times. It is listed on the Shanghai Stock Exchange, with Dongfang Securities as its sponsor. The prospectus reveals that ZJTION's main business is the research, development, production, and sales of automotive structural and functional components. The company's main products are automotive structural and functional components, which are key parts required for automobile production, primarily comprising the vehicle body and chassis. Currently, ZJTION has become a first-tier supplier for several well-known domestic and international automobile manufacturers or brands, including Geely Automobile, Great Wall Motors, Volvo, SAIC Group, GAC Group, SAIC-GM-Wuling, Jiangling Motors, and Lynk & Co. It has entered the supply chain systems of various automotive architecture platforms under Geely Group, such as Haohan, CMA, PMA, as well as A30, B30, ES11 under Great Wall Motors. In the field of new energy vehicles, it has actively developed cooperative relationships with well-known companies such as TS Company, ZEEKR, Li Auto, Nio, Leapmotor, and X Company, becoming their first-tier supplier. It is also a supporting partner of well-known component suppliers such as CATL, Wuxi Zhenghua, Hestan, and Saikoli. In terms of finance, for the fiscal years 2021, 2022, and 2023, the company achieved operating revenues of approximately 1.011 billion yuan, 1.478 billion yuan, and 1.544 billion yuan, respectively. The company's net profits were approximately 85.3763 million yuan, 131 million yuan, and 162 million yuan. It is important to note that the prospectus specifically reminds investors to pay attention to the risks of slowing revenue growth or declining revenue. In 2021 and 2022, the issuer's operating revenue grew by 67.58% and 46.13% year-on-year, respectively, showing rapid growth. In 2023, due to certain changes in the downstream passenger car market, a large number of new models entering the market, and increasingly fierce competition, the growth rate of sales for the issuer's product application models has slowed down relatively. The operating revenue for the year was 1,544.3016 million yuan, with a year-on-year growth of 4.50%. While revenue is increasing, the growth rate has slowed. If there are significant changes in the domestic and international environment in the future, or if the issuer cannot maintain good cooperative relationships with downstream vehicle manufacturers or faces difficulties in developing new customers, and cannot continuously obtain high-quality new model projects and develop new products for them, the issuer may face risks of slowing revenue growth or declining revenue in the future