Recently, we investigated the Tianrun crankshaft and exchanged views with the company’s leaders on issues such as the company’s operations since the beginning of this year and the progress made in the construction of raised capital investment projects.
The company has recently completed the IPO issuance and listing. During the promotion activities, we have a preliminary understanding of the company's history, technology, and operations. The focus of this investigation is its production process and management level.
1, the industry status is solid. Tianrun Crankshaft specializes in the production and sales of automotive engine crankshafts. It is currently the largest professional manufacturer of automotive engine crankshafts in China, and its comprehensive strength ranks first in the domestic crankshaft industry.
The company's crankshaft products are mainly used for the assembly of heavy-duty trucks and large and medium-sized passenger cars. The leading products are forged crankshafts with high processing difficulty, high technological content and high added value. The products are mainly used for heavy truck engines and the market share of heavy engine crankshafts reaches about 37%. In the later period, it will benefit from the development of the heavy truck market and structural changes in trucks.
The company's competitive advantage is reflected in: technical equipment and production technology advantages, product structure advantages, downstream supporting customer base and location advantages, and brand advantages. With certain pricing power, the comprehensive gross margins in the past three years and the first phase have steadily increased year by year.
The company has a good customer organization. Such as Dongfeng Cummins, Weichai Power and other domestic first-class engine manufacturers. This kind of customer structure on the one hand is conducive to the company to maintain a stable order and a higher level of profitability. On the other hand, it also helps the company learn from each other's advanced experience in business dealings with customers and improve their own technology and management.
2, a higher level of management. During the research, we had an intuitive understanding of the company's corporate culture and management level through visits, conversations, etc. The overall feeling was that the company had a strong positive development vision, and employees had better working conditions and on-site management. The company started to use ERP system in 1997 (the earliest batch in China); it cooperates with Merrill Lynch to introduce advanced management experience; it recruits four accounting firms as audit units to improve the standardization of enterprise management, and the above measures improve the management level of the company. Great help. At the same time, the company has a clear understanding of its own situation and has been actively seeking improvements.
3. Progress on the construction of raised capital investment projects. The company's production line has a higher level of flexibility and can flexibly adjust the product variety according to market demand, so as to satisfy market demands to the greatest extent and achieve better results. The company's crankshaft production capacity is around 500,000, and it is currently in full-load production. Therefore, the company's capacity increase has an urgent need for the construction of raised capital projects. With the implementation of the raised capital investment projects, the company's technological equipment strength, production and sales scale, market position, and anti-risk capability will be further improved in the next two years. The construction of fund-raising projects will gradually increase the overall production capacity of the company. It is expected that the production capacity will increase to about 600,000 in 2009. Looking at the current situation, the FAW-Cifang project is progressing well.
4, diversification of the water test product. Expansion connecting rod is a new connecting rod processing technology. This technology reduces the machining process and improves the machining accuracy. It means that the connecting rod processing surface has a high degree of coincidence, which helps to reduce the engine vibration, improve the explosive power of the engine, and enhance the stability of the engine. Sex and reliability, the market space in the later period is vast. The disintegration of connecting rod products is a diversified exploration of the company's business, and it is expected to become a new profit growth point in the later period.
The disjointed connecting rod project was obtained by the company in defeating Germany's ThyssenKrupp in an international tender, mainly for Dongfeng Cummins , and its technology was also provided by the company. The company's expansion and disconnection link project is designed with an annual production capacity of 5 million pieces. The initial plan is to produce 800,000 products a year, and an annual sales income of 35 million yuan can be realized. It is expected that the product will start production and supply in small quantities in the fourth quarter.
5. Overview of investment in crankshaft production lines. Normally, the investment in fixed assets for heavy-duty engine crankshaft production lines is around 150 million yuan, and with liquidity, the total investment is about 1.8 to 200 million yuan. The profit and loss output of heavy-duty engine crankshaft production lines is roughly estimated to be around 50,000 to 60,000. In addition, it also requires a certain level of processing technology and technology, and the overall commissioning time takes about one year. In general, the crankshaft production line of the main engine plant faces certain financial and technical obstacles, and it is difficult to reach the break-even point. From the perspective of the international market, there is a tendency for engine manufacturers such as Cummins to outsource crankshaft production.
Ritai Valve Group Co., Ltd. , http://www.stainless-steel-valve.com