Wuhan-based auto interior parts supplier Foresight Technology goes public

Shanghai (Gasgoo)- On September 11, Wuhu Foresight Technology Co., Ltd. ("Foresight"), a Chinese automotive interior parts supplier headquartered in Wuhu city, saw its RMB ordinary shares listed on the ChiNext board of the Shenzhen Stock Exchange, with an issuance price of 36.6 yuan per share and an issuance price-to-earnings ratio of 38.33 times. This marks a significant milestone as Foresight becomes the 28th company in Wuhu city to go public.

Photo credit: Foresight

Established in October 2006 and located in the Jiujang Economic Development Zone in Wuhu City, Foresight is a high-tech enterprise specializing in the R&D, production, and sale of automotive interior components.

The company's primary product categories include automotive interior functional components and decorative elements. Functional components encompass high-value, technologically advanced parts that must meet specific performance and strength requirements under various environmental conditions, such as air conditioning vents, cup holders, storage boxes, and interior door handles. Decorative elements, on the other hand, include various panels and trim that enhance the aesthetics of the vehicle's interior, such as door panels, main instrument panel covers, auxiliary instrument panel covers, and various decorative strips and rings.

Foresight has positioned itself as an integrated solutions provider, working on product design, mold development and manufacturing, component molding, surface coating, exterior wrapping, and product assembly. Since its inception, the company has primarily focused on functional components like air conditioning vents and interior door handles, gradually expanding its portfolio to include decorative elements, so as to create a diversified business layout with functional components at its core and decorative elements as a key growth area.

According to the prospectus, the company's annual operating revenue amounted to 464.17 million yuan in 2020, 599.28 million yuan in 2021, and 693.32 million yuan in 2022, with its yearly net profit reaching 61.83 million yuan, 75.34 million yuan, and 88.02 million yuan from 2020 to 2022, respectively, showing a continuous year-on-year upward trend.

As a second-tier supplier of automotive parts, the company's products are sold to renowned global automotive component suppliers such as Marelli, Yanfeng, Baic Hanil, Faurecia, Kasai Kogyo, and DaikyoNishikawa. These components ultimately find their way into various brand series, including Nissan, Mazda, Honda, Toyota, Hyundai, Ford Motor, Geely, Chery, and Changan. Notably, the company is also a first-tier supplier to Great Wall Motor and BYD.

In the first half of 2023, Foresight achieved operating revenue of 402.8 million yuan, representing a year-on-year growth of 32.03%. The company attributed this growth to the rapid expansion of the new energy vehicle market, increased orders for new energy vehicle-related products from Xinquan, Marelli, BYD, and Yanfeng, as well as continued growth in the new energy vehicle projects of the T Company, BYD, and AION. Additionally, the company's global footprint, including increased production and sales in Mexico, contributed to higher export revenue. Furthermore, its subsidiary Foresight Kojin's embedded business witnessed rapid growth, leading to increased sales revenue as well.

The growth in revenue has translated into an increase in profit size. In the first half of the year, Foresight achieved a net profit attributable to the parent company's shareholders, excluding non-recurring gains and losses, of 38.06 million yuan, reflecting a 17.23% year-on-year increase.