Hikvision/Dahua supplier Kaiwang Technology listed on GEM: share price increased by 74.04%

On December 23, Henan Kaiwang Electronic Technology Co., Ltd. (hereinafter referred to as "Kaiwang Technology") officially landed on the Growth Enterprise Market, with the stock code "301182", the issue price of 27.12 yuan per share, and the issue price-earnings ratio of 79.93 times. As of press time, the quotation was 47.20 yuan per share, an increase of 74.04%.

It is understood that Kaiwang Technology is a high-tech enterprise focusing on the research and development, production and sales of electronic precision cable connection components. It is committed to providing connection solutions for electronic precision cable connection components for customers in the fields of security, communications, etc., and gradually expanding into the fields of military equipment, rail transportation, medical equipment, new energy, etc. At present, its products mainly include security precision cable connection components, communication precision cable connection components and consumer and other precision cable connection components.

The prospectus shows that its revenue is mainly composed of main business and other businesses. In 2018, 2019 and 2020, Kaiwang Technology's operating income was 364 million yuan, 443 million yuan and 438 million yuan respectively, and the main business income was 362 million yuan, 441 million yuan and 433 million yuan respectively, accounting for 99.36%, 99.4% and 99% of the operating income respectively.

At the same time, its sales revenue to its largest customer Hikvision was RMB 198 million, RMB 231 million and RMB 201 million, respectively, accounting for 54.21%, 52.05% and 46.02% of its operating income, respectively, and the average proportion in the past three years was over 50%; its sales revenue to its second largest customer Dahua Technology was RMB 88.3021 million, RMB 130 million and RMB 139 million, respectively, accounting for 24.23%, 29.3% and 31.68% of its operating income, respectively.

Since its establishment, Kaiwang Technology has insisted on taking the path of independent innovation and has taken the construction of technological innovation capabilities as the driving force for the company's sustainable development. At present, the company has a product development team with high technical level, familiar with the direction of industry technology development, rich project experience, and good at innovation. Through independent innovation and development, collaborative customer development, and auxiliary customer development, the company can timely develop connection components that meet the needs of customers.

Data shows that from 2018 to 2020, Kaiwang Technology's R&D expenses were RMB 12.3049 million, RMB 15.8571 million, and RMB 18.1268 million, respectively. The proportion of R&D investment to current operating income was 3.38%, 3.58%, and 4.14%, respectively. The proportion of R&D capital investment and R&D expenses continued to increase.

In this IPO, Kaiwang Technology actually raised 650 million yuan, and the main investment project is the expansion of the production capacity of precision connectors and connection components. After the project reaches full production, it is expected to add 110 million PCS precision connectors and connection components each year, greatly enhancing the company's supply capacity of electronic precision cable connection components in the field of security equipment, and effectively solving the problem of production capacity bottlenecks. At the same time, it also provides production capacity guarantee for Kaiwang Technology's product application and promotion in the fields of communication equipment, consumer electronics, rail transportation, medical equipment, etc.