Source: Science and Technology Innovation Board Daily
Dingtong Technology recently disclosed the summary of institutional research. In July, the company obtained 235 institutions for research, and BlackRock, Samsung Asset Application, Dunhe Asset Management, and Freshwater Spring all appeared in the list of participants. In that month, Dingtong Technology received research frequency as high as 6 times. Since this year, multiple external factors, such as epidemic situation, Russia-Ukraine conflict, raw material price rise, exchange rate fluctuations, have emerged frequently, and many industries and companies have been affected to varying degrees. However, in the research, Dingtong Technology stated that these factors have limited impact on the company and its subsidiary Henan Dingrun. In terms of the epidemic, the region in which it is located is not significantly affected by the epidemic; In terms of upstream and downstream, logistics are smooth, delivery from upstream suppliers is unrestricted, and downstream demand remains strong; In terms of raw materials and exchange rates, the company has transmitted this cost increase to the client. Dingtong Technology's main business covers communication and automotive connectors. The company stated that communication is still the main business at present, while automotive connectors account for a relatively small proportion. However, even so, from the research summary, it can be seen that the agency's questions are mostly focused on the latter. The company stated that the specific increase in the proportion of automotive products depends on customers and product development. On the product side, currently, Dingtong Technology is gradually transitioning to Tier 1 suppliers, and automotive connector products are also gradually entering mass production. The client's connector customers include multiple manufacturers such as BYD, Nandu Power, and Honeycomb Energy, with ample orders in hand. And the development of new customers cannot do without certification, so it is not surprising that the certification cycle is also an important content. Dingtong Technology stated that each customer has different requirements and standards, so the certification cycle varies. For the development of automotive product customers, different approaches and products have an impact on the development cycle; Based on company experience, it is generally necessary to have a certification period of at least 1 year or more. With customers, orders, and products, the company is gradually expanding its connector production capacity. At present, Dingtong Technology's main production bases include Dongguan headquarters and Henan Dingrun. The connector project in the Henan Dingrun IPO fundraising project is accelerating construction progress. The completed factory building has already been put into operation, and other parts will gradually be invested in machinery and equipment according to customer needs. At present, the production capacity can still meet customer needs. In addition, the scheduled increase announced in April is intended as a production capacity plan to connect with the IPO fundraising project. Data shows that automobiles and communication are the two major application scenarios for connectors, accounting for a total of over 40%; Dingtong Technology emphasized in this summary that automobiles are the largest application field of connectors. With the development of electrification and intelligence in vehicles, high-voltage and high-speed high-frequency spaces have been opened up, and higher requirements have been placed on the pressure resistance, high temperature resistance, vibration impact resistance, and other aspects of on-board connectors, resulting in increased technical barriers. Zhongtai Securities believes that a single Alternative fuel vehicle with 800-1000 connectors is worth 3000-10000 yuan, which is a multiple increase compared with traditional fuel vehicles; In 2025, the global market size of new energy passenger vehicle connectors will grow to 48 billion yuan, with a compound growth rate of 30.66% from 2021 to 2025. It is worth mentioning that in this context, Dingtong Technology's Q2 revenue and net profit both increased significantly on a month on month basis, and both reached historic highs.