Source: Securities Daily Network Author: Wang He Feng Yuyao Time: 2022-05-13
On May 12, Chongqing Yuxin Pingrui Electronics Co., Ltd. (hereinafter referred to as: Yuxin Electronics) successfully held an online roadshow for its initial public offering and listing on the Growth Enterprise Market.
Yuxin Electronics has been deeply involved in the field of general gasoline engines for many years. The company was established in 2003, mainly engaged in the research and development, production and sales of general gasoline engines and core electronic control components of end products. In this listing, the company plans to raise 358 million yuan for the industrialization project of key electronic control devices for digital inverter generators.
Regarding the relevant situation of this fundraising project, Yuxin Electronics introduced at this roadshow that the construction period of the project is 19 months, and it is expected that the production rate will be 65% in the third year after the project is put into operation, and fully realized in the fourth year. production. On October 16, 2020, the project has started, and it is progressing normally. After the funds raised this time are in place, the project will be invested in the project as planned, and strive to be completed as soon as possible.
It is understood that the implementation of this fundraising project is conducive to making full use of the company’s existing patent achievements and core technologies, expanding production capacity, meeting the market’s demand for high-quality parts and components for general gasoline engines and generator sets, and further consolidating the company’s domestic, International market share and influence.
Years of deep cultivation in the field of general gasoline engines
According to the prospectus, the main products of Yuxin Electronics are the core components of general gasoline engines and end products, including general gasoline engine accessories (such as igniters, flywheels, charging coils, etc.), generator power system accessories (such as inverters, regulators, etc.) pressure regulator), as well as electric garden tools and low-speed new energy vehicle accessories.
At present, the company’s downstream customers include Loncin GM, Briggs & Stratton, Honda, Yamaha, Kohler and JAC Power, etc. In the past three years, the total sales of the top five customers accounted for about 60% of the current operating income.
Regarding the main application of the product in the downstream market, the relevant person in charge of Yuxin Electronics introduced to the reporter that the company’s general-purpose power electrical equipment is mainly used for general-purpose generator sets, agricultural, forestry and plant protection machinery, small construction machinery, residents’ outdoor activity equipment and emergency rescue. Power parts of terminal equipment such as implements.
“At the same time, the company’s generator power system accessories are mainly used for the power supply part of the general generator set.” The above-mentioned person in charge said.
It is understood that with the transfer of foreign general small gasoline engine industry to China and the drive of export market demand, my country has become the largest producer of general small gasoline engines.
“Affected by consumption habits and consumption ability, the domestic market is still in the early stage of development, but with the continuous development of the national economy and the continuous improvement of people’s quality of life, general machines and terminal products will gradually become necessary life and production tools, especially In the fields of generator sets, agricultural machinery, garden machinery, and small construction machinery, there is huge room for growth in domestic market demand.” The above-mentioned person in charge pointed out that the export prospects of General Dynamics machinery products are also very promising.
Although the domestic and export markets have broad development space, it should be pointed out that the current export ratio of general-purpose gasoline engines and terminal products is high, and the trade barriers and restrictions faced by domestic related enterprises cannot be ignored.
“At present, the export ratio of the above-mentioned products accounts for about 80% of the output, and most of them are exported to developed countries and regions such as the United States and Europe.” The above-mentioned person in charge admitted to the reporter, “As the international trade situation becomes increasingly tense, the target exporting countries adopt various regulations, The certification conditions raise the threshold and form barriers in terms of safety, energy saving, emissions, noise, EMC, hazardous substances, and energy efficiency requirements.”
“If the trade policies of exporting countries continue to be tightened and the technical barriers continue to increase, it will put forward higher requirements for the research and development capabilities and quality control of the domestic general gasoline engine industry, and the tariff barriers will directly weaken the price advantage that my country’s general machinery export products have long relied on, and the difficulty of exporting will increase. It will have a great adverse impact on my country’s general gasoline engine market.” He pointed out.
Accelerate the transition to new energy
The popularity of the new energy track has brought new opportunities for the transformation and development of Yuxin Electronics.
As mentioned above, the company’s products are mainly used for general-purpose generator sets, agricultural and forestry plant protection machinery, and small construction machinery. Under the trend of new energy, the transformation of Yuxin electronic fuel products to new energy is mainly reflected in the field of household garden machinery. It is reported that electric garden machinery has the advantages of low noise, light weight, more energy saving and environmental protection, and the gradually mature electric garden machinery may become a new development trend.
Based on the previous layout in the new energy field, the prospectus data shows that the revenue of Yuxin Electronics’ new energy products has been increasing year by year in the past three years. Among them, the revenue in 2021 will be 35.682 million yuan, which exceeds the company’s overall revenue growth in the same period, and the proportion of revenue is also From 4.45% in 2019 to 5.45%.
Talking about another original intention of this listing and fundraising project, the above-mentioned person in charge of Yuxin Electronics told reporters: “The company will accelerate the update and iteration of traditional advantageous products such as igniters and converters, develop and produce high-power converter products, and maintain The company’s advanced position in the industry; at the same time, in line with the technological development trends of general machine energy saving, environmental protection, safety and intelligence, it has developed new electronic control products such as one-button EFI products, one-button anti-towing start modules, carbon monoxide alarms, and Bluetooth remote control modules. Forward-looking research and development and technical reserves of devices.”
“The implementation of this project is a key step for the company to achieve its strategic goals, and it can lay the foundation for the company to expand in the direction of new energy products,” said the person in charge.
In this regard, Zhang Xiaorong, president of Deepin Science and Technology Research Institute, told reporters: “Under the background of ‘double carbon’, my country’s new energy industry has achieved rapid development, and the market has made great progress in terms of scale and technical level. The double carbon goal is a global issue. Climate change and national energy security, the new energy market still has huge development opportunities in the future. Under the policy guidance and subsidy support given by the state, new energy is infiltrating into some sub-sectors, such as general generator sets, agricultural, forestry and plant protection machinery and other products. Energyization has become a trend, and the combination of products in some sub-fields with new energy will greatly accelerate technological progress, rapidly realize digitalization and intelligence, and promote industrial transformation and upgrading.”