Kaizhong’s revenue in the first three quarters was 487 million yuan, with steady growth in net profit

On the evening of October 26, Kaizhong Shares announced its third quarter report for 2023. In the first three quarters, the company achieved operating income of 487 million yuan, a year-on-year increase of 10.74%; net profit attributable to shareholders of listed companies was 54.0293 million yuan, a year-on-year increase of 4.54%. Among them, in the third quarter, the company achieved operating income of 185 million yuan, a year-on-year increase of 11%; net profit attributable to shareholders of listed companies was 23.5113 million yuan, a year-on-year decrease of 5.49%.

The company’s main business is in the automotive parts manufacturing industry. It is mainly engaged in the design, research and development, production and sales of shock-absorbing components for automobile chassis suspension systems and lightweight pedal assemblies for control systems, as well as high-performance polyurethane bearings in the field of non-auto parts. R&D, production and sales of special polyurethane elastomers such as wheels.

Recently, the company said in an investor survey that polyurethane buffer blocks have a high technical threshold, there are few market participants, and product prices are relatively stable. At present, the main manufacturers of the buffer block business are BASF, Kaizhong and Vibach. Compared with BASF, the company’s advantages lie in quick response and customer service. Kaizhong’s domestic share is 36%, which has increased; its international market share is still very small, and there is broad room for development. This is also the main reason for the company to build a Mexican factory and pursue an internationalization strategy.