Automotive parts "little giants" and leading players in the plastic machinery accessory segment, two new stocks are listed today.

On March 27, two new stocks were listed, Zhejiang Huayuan (301535.SZ) and Zhejiang Huaye (301616.SZ), both on the Growth Enterprise Market.

Zhejiang Huayuan is a high-tech enterprise focused on the research, development, production, and sales of customized automotive system connectors. It is a "specialized, refined, distinctive, and innovative" small and medium-sized enterprise in Zhejiang Province and a national-level "specialized, refined, distinctive, and innovative" "little giant" enterprise.

According to the prospectus, Zhejiang Huayuan's main products are special-shaped fasteners and seat locks. These products are widely used in automotive body chassis and power systems, automotive safety systems, automotive intelligent electronic systems, and automotive interior and exterior decorative systems, specifically including automotive seats, automotive sensors, and new energy power battery packs.

Currently, the largest application area of Zhejiang Huayuan's products is automotive seats. The company's product revenue in the automotive seat sector (including fasteners and locks) from 2021 to the first half of 2024 was 327 million yuan, 360 million yuan, 415 million yuan, and 216 million yuan, accounting for 74.40%, 74.66%, 76.59%, and 76.89% of the total operating income for each period, respectively.

According to the introduction, Zhejiang Huayuan's main clients in the automotive seat sector include Lear, Adient, and Faurecia, which have basically covered the major suppliers in the domestic automotive seat industry. The concentration in the automotive seat industry is relatively high, with the combined market share of these main clients exceeding 75% in the domestic market.

However, the market share of Zhejiang Huayuan's main products is relatively low.According to calculations, the company's fastener sales in 2023 are approximately 926 million pieces, accounting for about 0.71% of the national passenger car fastener market; the sales of seat locks are 11.6848 million pieces, accounting for approximately 7.45% of the national passenger car seat lock market.

As a result, Zhejiang Huayuan highlighted risks in its prospectus, stating that the automotive parts industry is a highly competitive sector with intense market competition. The company's overall market share is relatively low, facing significant market competition pressure.

Zhejiang Huaye mainly engages in the research, development, production, and sales of core components for plastic molding equipment. Its main products include screws, barrels, guide columns, and related accessories for plastic molding equipment, which are primarily used in injection molding machines and extruders.

According to the prospectus, Zhejiang Huaye is one of the earliest enterprises to enter the plastic machinery components industry and has become a leading manufacturer of customized core components for plastic molding equipment in the industry. In June 2019, the company was recognized by the Ministry of Industry and Information Technology as one of the first batch of "Little Giant" enterprises that are specialized, refined, distinctive, and innovative.

According to Zhejiang Huaye, the company is one of the few manufacturers in China that can supply core components for ultra-large plastic molding equipment. It is also one of the earliest companies that has grown alongside major domestic plastic molding equipment manufacturers, continuously helping Chinese plastic molding equipment manufacturers break through key technologies.

Zhejiang Huaye claims that the double-cylinder injection compression process developed by the company is an industry-leading technology that meets the requirements for high-speed, efficient, and precise injection molding of super-large injection molding equipment, achieving independent control over the core components of super-large injection molding machines in China.

The prospectus shows that Zhejiang Huaye has established long-term stable cooperation relationships with many leading plastic molding equipment manufacturers both domestically and internationally. Overseas clients mainly include Engel, Husky, KraussMaffei, Demag, Milacron, and Davis-Standard, while domestic clients mainly include Yizhongmi, Fuqiangxin, Datong Machinery, Haitian International, Terry Machinery, Huayan Precision Machinery, and Zhenxiong Group.

It is worth noting that Zhejiang Huaye stated in its prospectus that the company has mastered multiple core technologies of independent innovation, cultivated a professional and efficient technical team, and established a relatively complete product innovation and R&D process. The core technologies have been protected through patent applications, and as of June 30, 2024, the company owns 125 patents, including 15 invention patents.

However, the prospectus shows that Zhejiang Huaye has 1,472 employees in 2024, with 1 master's degree holder, accounting for 0.07%; 76 bachelor's degree holders, accounting for 5.16%.Among the personnel, those with a college diploma account for 197 people, representing 13.38%; those with a vocational diploma or below account for 1198 people, representing 81.39%; in the professional structure of the personnel, sales staff number 54, accounting for 3.67%; production staff number 1219, accounting for 82.81%; and research and development staff number 80, accounting for 5.43%.