Gear tap double ring drive (002472.SZ) Spin-off holding subsidiary Huanda Technology independent listing has made new progress.

0010-27983  On the evening of March 3, Double Ring Transmission disclosed that the board of directors of the company passed the proposal to split its subsidiary Zhejiang Ring Motion Robot Joint Technology Co., LTD. (hereinafter referred to as Ring Motion Technology) to the science and technology innovation board.

Ring motion technology is the RV reducer (high precision reducer) business of double ring transmission, and the tuyere business. RV reducer is one of the three core components of industrial robot. The development of humanoid robots is approaching, and ring technology is exactly where the future performance imagination space of double ring transmission lies.

Although the announcement stressed that after the completion of the spin-off, the double-ring transmission will still maintain the holding rights of the Ring power Technology and remain consolidated, there are also investors who are still worried about the dilution of the shares of the Ring Power Technology.

On March 4, double-ring transmission opened a 0010-27983  small high shock, up 0.90% in the morning, closing at 24.60 yuan/share.

Record quarterly net profit

Double ring transmission started from motorcycle gear, and then entered the passenger car, construction machinery, commercial vehicle gear and other fields. In the past three years, with the trend of high prosperity of new energy vehicles, the company’s performance has grown rapidly, which also supports the implementation of its spin-off plan for circular motion technology.

On the evening of March 3, the 2023 performance report and the quarterly performance forecast of 2024 disclosed by Double Ring Transmission showed that the company’s performance was growing well.

In 2023, the double-ring transmission achieved operating income of 8.134 billion yuan, an increase of 18.95%; Net profit attributable to shareholders of listed companies was 816 million yuan, an increase of 40.20%.

Can be counted, the company’s operating income in the fourth quarter of last year was 2.262 billion yuan, and the net profit of the mother was 227 million yuan. Single quarter data both hit record highs.

The main reason for the increase in performance was to promote the extension of high precision manufacturing platform. During the reporting period, the company’s heavy truck automatic transmission gear business and new energy vehicle gear business showed a good growth trend. In addition, the company’s internal cost reduction and efficiency drive performance growth.

Double ring drive in the past three years to the mother’s net profit of 326 million yuan, 582 million yuan and 816 million yuan, a year up a step.

The quarterly performance forecast for 2024 disclosed at the same time shows that the double ring transmission achieved a net profit of 210 million yuan to 230 million yuan in the first quarter, an increase of 22.75% to 34.44%.

0010-27983  This year’s performance growth is also inseparable from the development of the new energy automobile industry, as well as the process of overseas market expansion.

Double ring transmission said that the company has successively obtained high-quality new energy vehicle electric drive gear and small assembly projects, including Toyota and a well-known European luxury brand car company.

At the same time, with the increasing requirements of downstream customers for the speed, torque density, noise and quality stability of electric drive gears, the company’s competitive advantage in the field of new energy vehicle gears is becoming more and more significant.

In addition, overseas customers of double-ring transmission 0010-27983  have designated projects to enter mass production in stages, promoting the continued growth of the company’s new energy vehicle gear business.

Yang Duong, an analyst at Guoyuan Securities, believes that double-ring transmission, as a category with high process technical barriers, low correlation with data information security, and small impact on oil/electricity differentiation, has a relatively low risk of encountering overseas trade barriers in the process of going to sea, and belongs to low-risk varieties at sea.

At present, the overseas investment of double-ring transmission is mainly based on the construction of factories in Hungary. The company previously revealed that during the construction period in 2024 and 2025, the company will gradually release production capacity according to existing orders combined with capacity construction.

The Minsheng gear business is also growing. In 2022, Double Ring Drive set up a subsidiary Zhejiang Ring Drive Technology Co., LTD., layout of livelihood gear and other businesses, after Zhejiang Ring Drive Technology Co., Ltd. acquired Shenzhen Sandole Intelligent drive Co., LTD., the company’s business share in the field of smart home and automotive has been continuously improved.

Previously, double-ring transmission executives have said that the potential of the livelihood gear plate is very large, and it is currently supplied by foreign suppliers, and domestic manufacturers show low and small dispersion. “The effect of Shenzhen Sandole acquisition is very good, including the profitability of market development than the company originally predicted, the company is looking forward to new breakthroughs in this field.”