On August 26, Temb Intelligent Technology (Shandong) Co., Ltd. (603448) officially opened its online and offline subscription on the Shanghai Stock Exchange main board. The automotive thermal management parts manufacturer from Qufu, Shandong, is testing the market with an issue price of 62.65 yuan per share—the highest IPO price for a Shanghai main board new stock this year. Under the halo of being the world's third-largest thermostat maker by market share and the largest in China, the company is confronting multiple challenges, including slowing revenue growth and intensifying industry competition.

From a Qufu Auto Parts Plant to a Thermal Management Leader

Temb Intelligent's roots trace back to the Qufu Auto Parts Factory, established in 1970, which was among the earliest domestic enterprises to achieve localized production of automotive temperature control components. In September 2001, Qufu Temb Automotive Parts Manufacturing Co., Ltd. was officially incorporated, and in December 2024, it was renamed Temb Intelligent Technology (Shandong) Co., Ltd. The company has long focused on automotive temperature control components such as thermostats and intelligent water valves, as well as temperature sensors and AVAS products. According to Frost & Sullivan statistics, in 2024, the company's automotive thermostat revenue ranked third globally and first in China, with a domestic market share exceeding 46%; its domestic revenue rankings for intelligent water valves, temperature sensors, and AVAS products were 2nd, 4th, and 2nd, respectively. In 2025, the company's intelligent automotive thermostat was selected as a national-level manufacturing single champion. On the customer front, the company covers most domestic OEMs, with all of China's top ten automakers by sales volume in 2025—including BYD, SAIC Motor, Geely Holding, FAW Group, Changan Automobile, and Chery Automobile—listed as its customers for that period.

Financial Performance: Growth Hitting a Ceiling, Profitability Under Pressure

During the reporting period (2023–2025), the company's revenue reached 1.27 billion yuan, 1.693 billion yuan, and 1.961 billion yuan, respectively, while net profit attributable to shareholders was 112 million yuan, 323 million yuan, and 351 million yuan. Over the three years, the compound annual growth rate of revenue was approximately 24.3%, with net profit attributable to shareholders surging 188% year-on-year in 2024, but the growth rate had already slowed to 8.67% in 2025. Entering 2026, the inflection point signals have become more pronounced. In the first quarter, revenue was 407 million yuan, down 6.42% year-on-year; net profit attributable to shareholders excluding non-recurring items was 69.28 million yuan, down 14.42% year-on-year. In the first half, revenue was 945 million yuan, up 2.66% year-on-year, but net profit attributable to shareholders was 163 million yuan, down 12.58% year-on-year. The company forecasts revenue of 1.315 billion to 1.52 billion yuan for January–September 2026, a year-on-year change of -4.97% to 9.85%; net profit attributable to shareholders is expected to be 218 million to 249 million yuan, down 6.64% to 18.26% year-on-year. On gross margin, the company's comprehensive gross margin declined from 30.10% in 2023 to 29.23% in 2025, and further dropped to 30.76% in the first quarter of 2026 (down 1.09 percentage points year-on-year). The company attributes the decline mainly to the drop in domestic automobile production and the OEM "annual price reduction" practice.

Fundraising Projects: Expansion and Diversification in Parallel

The company plans to publicly issue 30 million shares in this offering, accounting for 25% of the total share capital after issuance, with total raised funds of approximately 2.057 billion yuan. The proceeds are primarily allocated to four major projects: the intelligent thermal management component project will add an annual production capacity of 11 million electronic water valves, 10 million pressure sensors, and 1 million water-side integrated systems. The capacity expansion and technical upgrading project will add an annual production capacity of 5 million thermostats and 28 million temperature sensors. Currently, the company's capacity utilization rates for thermostats and intelligent water valves are approaching saturation, making capacity expansion an urgent practical need. Beyond the automotive core business, the company is leveraging its thermal management core technology to expand into emerging fields such as energy storage, AI data center liquid cooling, and robotics, with related revenue growing from 2.65 million yuan in 2023 to 15.96 million yuan in 2025.

Pricing and Valuation of the Offering

Temb Intelligent's issue price is 62.65 yuan per share, with one lot (500 shares) requiring a payment of 31,300 yuan. The issue P/E ratio of 21.43 times is lower than the average static P/E ratio of 22.82 times for the automobile manufacturing sector over the past month and also below the average P/E level of comparable companies. As of August 18, 2026, the average P/E ratio (TTM) of comparable companies was approximately 39.70 times. From a relative valuation perspective, the issue pricing leaves some room for a discount. In terms of strategic placement, the lineup is quite prominent, with 6 million shares allocated (20% of the offering size), subject to a 12-month lock-up period. Participants include industrial capital such as SAIC Motor Finance and Chery Technology, cross-industry partners like Sungrow Power, TBEA, and Leader Harmonious Drive Systems, as well as national-level long-term funds including the National Social Security Fund and the Basic Pension Insurance Fund.

Risk Factors: Hidden Concerns That Cannot Be Ignored

Risk of continued performance decline. The company's revenue growth has slowed and profits have fallen significantly since 2026; if the automotive industry's prosperity continues to weaken or OEMs further squeeze prices, performance still faces downward pressure. High customer concentration. From 2023 to 2025, the proportion of revenue from the top five customers rose from 32.69% to 42.89%. Major customer BYD has previously cut orders, and the operational volatility risk brought by customer concentration should not be underestimated. Product structure lagging behind industry transformation. The company's revenue from pure electric vehicles accounts for less than 6%, while fuel vehicle-related revenue still represents a considerable proportion. Against the backdrop of rapid new energy vehicle penetration, the pressure of product structure transformation is significant. Large cash dividends before the IPO have sparked controversy. In 2023 and 2024, the company accumulated cash dividends of nearly 600 million yuan. At the same time, actual controllers Lv Xinmin and his son Lv Yawei directly and indirectly control 95.57% of the voting rights. The move of "dividending 600 million first, then raising 2 billion" has triggered heated market discussion. Relatively low R&D investment. The company's R&D expense ratio is approximately 4%, significantly lower than the average level of listed companies in the same industry. In the auto parts industry where technology iteration is accelerating, this shortcoming may constrain long-term competitiveness. Intensifying industry competition. Leading companies such as Sanhua Intelligent Controls and Tuopu Group continue to increase their presence in the thermal management sector, with new entrants constantly emerging, exposing the company to the risk of intensified market competition.

Temb Intelligent is an automotive thermal management parts company with a strong competitive advantage in its niche segment. Its market position as the number one thermostat maker in China and third globally constitutes its core moat. If the fundraising projects proceed smoothly, the company is expected to break through capacity bottlenecks and extend into high-value-added areas such as water-side integration. However, risk factors such as slowing performance growth since 2026, gross margin pressure, high customer concentration, and absolute control by actual controllers also warrant vigilance. For investors, this is an IPO target with "good fundamentals but notable concerns," requiring a balance between optimistic expectations and prudent assessment.