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

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

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.

The prospectus shows that Zhejiang Huayuan's main products are non-standard fasteners and seat locks, which are widely used in automotive body chassis and power systems, automotive safety systems, automotive intelligent electronic systems, and automotive interior and exterior decoration systems. Specifically, this includes automotive seats, automotive sensors, new energy power battery packs, and other components.

Currently, the largest application field of Zhejiang Huayuan's products is automotive seats. The company's product revenue (including fasteners and locks) in the automotive seat sector 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 in each corresponding period.

According to the introduction, Zhejiang Huayuan's main customers in the automotive seat sector include Lear, Adient, and Faurecia, which basically cover 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 the aforementioned main customers exceeding 75% in the domestic market.

However, Zhejiang Huayuan's market share for its main products is relatively low. According to estimates, the company sold approximately 926 million fasteners in 2023, capturing about 0.71% of the national passenger car fastener market; it sold 11.68 million seat locks, accounting for approximately 7.45% of the national passenger car seat lock market.

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

Zhejiang Huaye is mainly engaged in the research and development, production, and sales of core components for plastic molding equipment. The main products include screws, barrels, liners, and related accessories for plastic molding equipment, primarily used in injection molding machines, extrusion machines, and other plastic molding equipment.

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 as one of the first batch of "specialized, refined, distinctive, and innovative" "little giant" enterprises by the Ministry of Industry and Information Technology.

According to Zhejiang Huaye, the company is one of the few manufacturers in China capable of supplying core components for ultra-large plastic molding equipment and is also one of the earliest companies to grow alongside major domestic plastic molding equipment manufacturers, continuously helping China's plastic molding equipment manufacturers break through key technologies.

Zhejiang Huaye claims that the dual-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 ultra-large injection molding equipment, achieving independent control over the core components of ultra-large injection molding machines in China.

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

It is worth noting that Zhejiang Huaye stated in its prospectus that the company has mastered several core technologies of independent innovation, nurtured a professional and efficient technical team, and established a relatively complete product innovation and research and development process. The core technologies have been protected through patent applications. As of June 30, 2024, the company holds 125 patents, including 15 invention patents.

However, the prospectus shows that Zhejiang Huaye has 1,472 employees in 2024. In terms of employee qualification structure, there is 1 master's degree holder, accounting for 0.07%; 76 bachelor's degree holders, accounting for 5.16%; 197 junior college degree holders, accounting for 13.38%; and 1,198 employees with technical secondary school education or below, accounting for 81.39%. In terms of professional structure, there are 54 sales personnel, accounting for 3.67%; 1,219 production personnel, accounting for 82.81%; and 80 research and development personnel, accounting for 5.43%.