Mingteng International Corporation Inc. (MTEN) has filed to raise $11.1 million in an IPO of its ordinary shares, according to an SEC F-1 registration statement.
The firm provides a range of industrial casting products for the automobile sector in China.
Due to the company’s dropping top line revenue, reduced net margin, and operating and regulatory risks in China, my opinion on the Mingteng International Corporation Inc. IPO is to Sell [Avoid].
Wuxi, China-based Mingteng International Corporation Inc. was founded to provide a full suite of casting products and related services for various automotive parts.
Management is headed by Chairman and CEO Mr. Yingkai Xu, who has been with the firm since 2015 and previously held various management-level roles at Tin Cummins Turbocharger Technology and the Wuxi Yelong Precision Machinery Co.
The company’s primary offerings include the following casting molds for:
Turbocharger systems
Braking systems
Steering and differential system
EV motor drive systems
Battery pack systems
Engineering hydraulic components.
As of June 30, 2023, Mingteng has booked fair market value investment of $1.4 million from investors, including YK Xu Holding, DJZ Holding and Hongze L.P.
The firm seeks customers in the automobile parts manufacturing industry through its direct sales and marketing efforts.
Most of the company’s customers have been clients for more than five years, and the firm generated 84% of its total revenue from customized mold production.
According to a 2023 market research report by Prophecy Market Insights, the global market for industrial molds was an estimated $25.3 billion in 2022 and is forecasted to reach $46.9 billion by 2032.
This represents a forecast CAGR (Compound Annual Growth Rate) of 6.4% from 2023 to 2030.
The main drivers for this expected growth are the integration of IoT sensors, the increasing use of advanced materials and the growing utilization of additive manufacturing, among others.
Also, conditions that may impede the market’s growth in the coming years include the need to invest in technological enhancements, compliance with increasing environmental regulations and shortages in skilled labor.
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