LED ambient lighting supplier Huasheng is expected to go public in March

Huasheng held a pre-IPO results conference on February 13 and is expected to be listed for trading in mid-March. Chairman Chen Kengsheng said that Huasheng’s core product is LED ambient lighting, and the market trend of electric vehicles using ambient lights in large quantities has brought operational growth momentum to Huasheng. The target is to account for 25% of the overseas market this year. The Thai factory is expected to start mass production next year.

Chen Kengsheng said that since its establishment in 2003, Huasheng has become one of the leading brands of smart ambient lights and innovative automotive components with Tier 1 industrial status, and has production bases in Pinghu, Jiaxing, Thailand, and other places, as well as operating bases in Mexico, the United States, Shanghai and other places.

Chen Kengsheng pointed out that Huasheng’s core product, automotive LED ambient lights, has intelligent functions such as breathing light effects, color change, and music rhythm. It has various lighting forms, covering direct light emission, indirect light emission, light-emitting panels and other methods, which can fully meet the needs of different models and customers.

Chen Kengsheng shared that Huasheng’s new products such as starry sky canopies, electronic canopies, and smart reading light modules have their own characteristics. Taking the starry sky canopy as an example, it uses laser technology to achieve customized pattern design, and with LED lights, it creates a beautiful atmosphere at night. It is also ahead of competing products in the industry in terms of durability, lighting principle, and installation methods. The target market is positioned at mid-to-high-end cars.

Li Qingguo, Vice President of Huasheng, said that Huasheng, as a first-tier supplier of North American GM, currently has established solid cooperative relationships with the top ten automakers in mainland China, including leading companies in the new energy vehicle field such as NIO, Ideal, BYD, and Xpeng. With its strong supplier qualifications, Huasheng can expand product applications among different models and form strong channel support.

Li Qingguo pointed out that Huasheng will sell more than 210 models in total in 2024. According to data, it is expected that by 2030, the penetration rate of EV electric vehicles will reach 34.4%, and the global ambient lighting market will see significant growth. Huasheng has already seen this trend and actively carried out strategic layout.
Li Qingguo shared that the smart rhythmic LED color-changing ambient lighting system has successfully entered mainland China's new energy vehicle index companies, and existing delivery customers are still continuing to expand their business, with full momentum for future growth. Overseas, Thai factories are the main ones, and all overseas production capacity will be transferred to Thailand in the future. The target is to account for 25% this year, including ambient lighting shipments from major American electric vehicle manufacturers.

Huasheng's performance in the first three quarters of 2024 is outstanding, with net sales revenue reaching 1.475 billion yuan; pre-tax net profit as high as 233 million yuan, an annual increase of 41%, and earnings per share of 4.68 yuan, which has exceeded the full year of 2023. Looking ahead, Huasheng has strong research and development capabilities, has its own light source library and optical material library, and can integrate structural design, optics, software, hardware and molds, which is worth the market's expectations.