On July 17, Xinyin Electronics (China) Co., Ltd. (hereinafter referred to as "Xinyin Electronics", SZ: 301329) was listed on the Growth Enterprise Market of Shenzhen Stock Exchange. In this listing, the issue price of Xinyin Electronics is 21.00 yuan per share, the number of shares issued is 43 million, the total fundraising is about 903 million yuan, and the net fundraising is about 823 million yuan.
On the first day of listing, the opening price of Xinyin Electronics was 31.00 yuan per share, a 47.62% increase from the IPO issue price, and once rose to 32.00 yuan per share during the session. As of the close, the stock price of Xinyin Electronics closed at 28.51 yuan per share, a 35.76% increase from the issue price, with a total market value of approximately 4.852 billion yuan.
Tianyancha information shows that Xinyin Electronics was established in November 2001, formerly known as Xinyin Electronics (Suzhou) Co., Ltd. At present, the registered capital of the company is about 127 million yuan, the legal representative is Yang Zhenggang, and the main shareholders include Xinyin (Hong Kong) International Holdings Co., Ltd., Fu Lakai Consulting (Shanghai) Co., Ltd., etc.
Previously, Xinyin Electronics was listed on the New Third Board with the code "831741", and then delisted on January 22, 2021. According to the prospectus, the main business of Xinyin Electronics is the research and development, production and sales of connectors. Among them, connector products are mainly used in notebook computers, consumer electronics and automobiles.
Xinyin Electronics stated in the prospectus that it is a world-renowned manufacturer of notebook computer connectors. According to reports, Xinyin Electronics is a qualified supplier of computer brands such as HP, Lenovo, Asus, and Acer, and has established stable cooperative relations with foundries such as Quanta, Compal, Inventec, Wistron, Pegatron, Hon Hai, and Lianbao.
According to statistics from Bishop & Associates, the sales revenue of connectors in the mobile computer market in 2020 will be US$1.791 billion, equivalent to approximately RMB 12.4 billion. Among them, Xinyin Electronics' sales of notebook computer connectors in 2020 will be 466 million yuan, accounting for about 3.76% of the mobile computer connector market.
According to the prospectus, the revenue of Xinyin Electronics in 2020, 2021 and 2022 will be 868 million yuan, 951 million yuan and 874 million yuan respectively; the net profit will be 108 million yuan, 104 million yuan and 96.4356 million yuan respectively, and the net profit after deducting non-profits will be 89.4128 million yuan, 93.953 million yuan and 111 million yuan respectively.
It is not difficult to see that the revenue of Xinyin Electronics in 2022 will decline compared with that in 2021. Xinyin Electronics explained in the prospectus that the main reason is that due to the shortage of chips, the decline in terminal demand, and the impact of the shipping strategies of some brand manufacturers, the growth of global and Chinese notebook shipments has slowed down, and the impact of the high base in 2021.
It is worth mentioning that the income of Xinyin Electronics mainly comes from overseas. During the reporting period, the company’s export sales amounted to 720 million yuan, 794 million yuan and 698 million yuan respectively, accounting for 85.10%, 85.00% and 81.61% of the main business income, and the settlement of this part of the goods was mainly denominated in US dollars.
Bedo Finance understands that Xinyin Electronics’ revenue mainly comes from connector products, of which connectors used in notebook computers account for about 50% to 60%. During the reporting period, the notebook computer connector revenue of Xinyin Electronics was 466 million yuan, 544 million yuan and 444 million yuan respectively, accounting for 55.06%, 58.19% and 51.90% of the main business revenue.
According to the sales model, the main business of Xinyin Electronics adopts the sales model of direct sales as the main business and distribution as the supplement. During the reporting period, the income of Xinyin Electronics based on the direct sales model was 769 million yuan, 837 million yuan and 751 million yuan respectively, accounting for 90.86%, 89.66% and 87.85% of the main business income.
Xinyin Electronics pointed out risks in the prospectus, saying that the decline in demand for notebooks, consumer electronics and other terminals continues in the short term. If the shipments of its main downstream customers continue to decline, the company will face the risk of a reduction or loss of direct customer orders. If the exchange rate changes unfavorably in 2023, there will still be a risk of a year-on-year decline in revenue and net profit in 2023.
According to the latest forecast from DIGITIMES Research, demand for notebook computers will still face unfavorable factors in 2023, and notebook computer shipments will still decrease by 4.2% compared with 2022. Affected by this, Xinyin Electronics' notebook computer connector revenue in 2023 is also facing the risk of continued decline.
According to the prospectus, the revenue of Xinyin Electronics in the first quarter of 2023 was 185 million yuan, a decrease of 17.54% from 224 million yuan in the same period of the previous year;
At the same time, Xinyin Electronics expects that its revenue in the first half of 2023 will be about 430 million yuan, a decrease of 2.64% from the same period in 2022; the net profit attributable to the parent company will be 45.1238 million yuan, a decrease of 8.66% from the same period in 2022;
Before the listing, the ultimate controlling shareholder of Xinyin Electronics was Taiwan Xinyin, which indirectly held 81.89% of the company's shares. After this issuance, Taiwan Xinyin indirectly holds 61.20% of the company's shares and is still in an absolute controlling position.