GMT EIGHT - IPOs

A-share subscription | Fangzheng Valve (920082.BJ) opens subscription for key supply network members such as PetroChina, Sinopec, CNOOC and other enterprises.

On December 17, Fangzheng Valve (920082.BJ) opened for subscription, with an issue price of 3.51 yuan per share and a subscription limit of 1.5817 million shares. The price-earning ratio is 8.39 times. It belongs to the Beijing Stock Exchange, with Zheshang as the sponsor (lead underwriter). The prospectus shows that Fangzheng Valve is a manufacturer that provides industrial pipeline control solutions. During the reporting period, the company mainly engaged in the design, manufacture, and sale of industrial valves. It has formed several product series mainly based on ball valves, gate valves, globe valves, check valves, butterfly valves, and wellhead equipment, which are applicable to various fields such as petroleum, natural gas, refining, chemical, power plants, and ships. Fangzheng Valve products have high brand awareness and strong competitive advantages in the industry. The company has obtained international certifications such as the American Petroleum Institute (API), European Union's Pressure Equipment Directive (PED), Canadian CRN certification, BV France Bureau Veritas Marine Approval, ABS American Bureau of Shipping Marine Approval, DNV Det Norske Veritas Marine Approval, and CCS China Classification Society Marine Approval. It is a key supplier network member of major domestic oil, gas, and petrochemical enterprises such as PetroChina, Sinopec, and CNOOC, as well as qualified suppliers for international energy and petrochemical giants such as Shell, BP, PDO, Petronas, and Sabic. According to the "2021 Global Valve Manufacturing Industry Market Status and Development Trend Analysis" released by the Prospective Industry Research Institute, China accounts for 17% of the global valve manufacturing industry market share, making it the second largest market after the United States, which has a share of 27%. Germany, Japan, and other European countries also have a significant market share. Overall, developed countries dominate the market with industrial development foundations, while China's rapid development has continued to increase its position and influence in the global industrial valve market. According to statistics from the China General Machinery Industry Association, as of December 31, 2020, there were 1,928 valve industry enterprises above a certain scale in China. With the increase in the number of enterprises, the overall technological level of the industry has also significantly improved. The localization rate of key equipment such as valves in oil and gas pipelines has exceeded 90%, and a group of companies with advanced valve production technology are gradually strengthening their competitiveness in the international market. As various engineering projects such as domestic oil and gas pipelines and power energy continue to advance, the industrial valve market in China continues to grow. According to GIA's forecast data, the market size of the valve industry in China will rise to 18.2 billion USD in 2026, with a compound annual growth rate of 6.2% from 2021 to 2026. On the financial side, in 2021, 2022, 2023, and January to June 2024, Fangzheng Valve achieved operating revenues of approximately 451 million yuan, 616 million yuan, 679 million yuan, and 406 million yuan, respectively. During the same period, net profits were approximately 22.1583 million yuan, 43.0113 million yuan, 60.593 million yuan, and 36.9034 million yuan.

17/12/2024

Hengxin Life Deeply Submits IPO Registration at Shenzhen Stock Exchange. The company's main products are biodegradable food utensils.

On December 16, Hefei Hengxin Life Technology Co., Ltd. (referred to as Hengxin Life) applied for a change in the IPO review status of the Shenzhen Stock Exchange's Growth Enterprise Market to "submitted for registration." Huaan is its sponsor institution, and the company plans to raise 828.32 million yuan. According to the prospectus, Hengxin Life researches, produces, and sells paper and plastic tableware using raw materials such as base paper, PLA particles, and traditional plastic particles. After years of development, the company has independently developed and mastered technologies such as PLA plastic particle modification, film coating, and molding. It has the ability to provide integrated R&D and manufacturing services for paper and plastic tableware according to customer's personalized needs. Its main products include biodegradable PLA film-coated paper cups/bowls, PLA film-coated paper lunch boxes, PLA cups/lids, PLA lunch boxes, PLA cutlery, PLA straws, paper cup sleeves, as well as PE film-coated paper cups/bowls, PP/PET cups/lids, lunch boxes, PS cup lids, etc. The company's main product, biodegradable tableware, can achieve biodegradation and is a typical eco-friendly, carbon-reducing product that can help achieve the "dual carbon" goal, in line with national strategic direction. During the reporting period, the sales revenue of biodegradable products accounted for 54.39%, 52.35%, and 59.19% of the company's main operating income. With a philosophy and goal of enhancing user experience, the company's main products, known for their environmentally friendly properties, high-end quality, and attractive design, are favored by domestic and foreign customers, becoming the provider of paper and plastic tableware for many well-known domestic and foreign enterprises such as Luckin Coffee, Starbucks, McDonald's, Coco, etc. After deducting issuance expenses, Hengxin Life plans to invest in the following projects: Financially, in 2021, 2022, 2023, and January-June 2024, Hengxin Life is expected to achieve operating revenues of approximately 719 million yuan, 1.088 billion yuan, 1.425 billion yuan, and 733 million yuan, respectively. During the same period, the company is expected to achieve net profits of approximately 81 million yuan, 166 million yuan, 221 million yuan, and 106 million yuan respectively.

16/12/2024

Honggong Science and Technology submitted an IPO registration on the Growth Enterprise Market, focusing on automated processing production lines and equipment for bulk materials such as powder, granules, liquids, and pastes.

On December 16, Honggong Technology Co., Ltd. (referred to as Honggong Technology) applied for a change in the review status of its IPO on the ChiNext Board of the Shenzhen Stock Exchange to "submitted for registration." CITIC SEC is its sponsor institution, and it plans to raise 532.02 million yuan. According to the prospectus, Honggong Technology focuses on the research, development, production, and sales of automated processing production lines and equipment for bulk materials such as powders, granules, liquids, and pastes. It is a solution provider for material automation processing with proprietary core equipment, components, and software. The company analyzes a series of demand factors provided by downstream customers, such as the types of products, the physical and chemical properties of raw materials used by customers, the scale of newly built production capacity, product quality standards, production processes, etc., to provide suitable material automation solutions, and based on these solutions, produce production lines or stand-alone products that include proprietary core equipment, components, and software. Honggong Technology's main products are material automation processing production lines and equipment used in the processing of powders, granules, liquids, pastes, etc., in process industries. According to the customer's production process, material automation production lines are used to meet various process requirements such as feeding, batching, conveying, mixing, blending, grinding, drying, packaging, etc., and to achieve full-process automation and intelligent operation through software control systems. Stand-alone equipment is used to meet single process requirements such as mixing and transferring. In terms of profit model, Honggong Technology mainly provides material automation processing production lines and equipment to customers in industries such as lithium batteries, positive and negative electrode materials, and fine chemicals to meet the stable and efficient production and manufacturing needs of customers. The company provides suitable material automation solutions based on a series of demand factors provided by downstream customers, and produces production lines or stand-alone products that include proprietary core equipment, components, and software based on these solutions to generate operating income. In the reporting period, the composition of Honggong Technology's main operating income by product category is as shown in the table below: Financially, in the fiscal years 2021, 2022, 2023, and January-September 2024, Honggong Technology achieved operating income of approximately 579 million yuan, 2.178 billion yuan, 3.198 billion yuan, and 1.459 billion yuan, respectively. During the same period, the company achieved net profits of approximately 50.769 million yuan, 298 million yuan, 315 million yuan, and 111 million yuan, respectively. According to the risk factors section in the prospectus of Honggong Technology, the company may face the risk of a decline in operating performance. The significant growth in operating income from 2021 to 2023 was mainly due to the continuous increase in cooperation projects with top customers. Since 2024, the pace of expansion in downstream sectors has slowed down, leading to a decline in the company's operating income. The operating income and net profit for January-September 2024 were approximately 14.59 billion yuan and 1.11 billion yuan, respectively, with a year-on-year decrease of 26.44% and 37.42%. According to the company's profit forecast, the full-year operating income for 2024 is expected to decrease by 30.49%, and the net profit after deducting non-recurring gains and losses is expected to decrease by 27.55%. If the company's accounts receivable collection in 2024 is lower than expected, and the amount of goods with an inventory age of more than one year continues to increase, then the performance in 2024 will further decline.

16/12/2024

(Tianyouwei) has submitted its IPO registration to the Shanghai Stock Exchange, focusing on the field of new energy intelligent cabins.

On December 13th, Heilongjiang Tianyouwei Electronics Co., Ltd. (hereinafter referred to as "Tianyouwei") applied for the change in the IPO review status of the Shanghai Stock Exchange mainboard to "submitted for registration". China Securities Co., Ltd. serves as its sponsor, with a planned fundraising of 3.004 billion yuan. The prospectus shows that Tianyouwei is mainly engaged in the research and development, production, sales, and service of automotive instrumentation, and is gradually expanding into the field of intelligent cockpits. The company's main products include electronic combination instruments, full LCD combination instruments, dual-screen instruments, and other automotive electronic products and services. Since its establishment, Tianyouwei has always focused on automotive instrument products, grasping the trend of automotive intelligent development, adhering to customer-oriented demand, continuously developing and iterating, and possessing mature research and development capabilities, production capabilities, and service guarantee capabilities for automotive instrument and other automotive electronic products. Through long-term business development, the company has the ability to synchronously develop and supply in batches to automotive OEMs and has accumulated customers including many well-known domestic and foreign automotive OEMs and automotive component suppliers, mainly including Hyundai Motor Group (including Hyundai Motor, Kia Motors, Hyundai Mobis, etc.), BYD Company Limited, Chongqing Changan Automobile, FAW Pentium, Chery Group, SAIC-GM Wuling, HyolimXE, Wuhu Token Sciences, Geely Group, Beijing Hyundai, Yueda Kia, BAIC Motor, Xin Yuan Auto, Beiqi Foton Motor, Qingling Auto, Anhui Jianghuai Automobile Group Corp., Ltd., Dongfeng Motor, Kaiyi Motor, etc. After deducting issuance expenses, Tianyouwei plans to invest in the following projects: In terms of finances, in the fiscal year of 2021, 2022, 2023, and from January to June of 2024, Tianyouwei is expected to achieve operating revenues of about 1.168 billion yuan, 1.972 billion yuan, 3.437 billion yuan, and 2.039 billion yuan respectively. During the same period, the company is expected to achieve net profits of about 116 million yuan, 397 million yuan, 843 million yuan, 550 million yuan respectively.

16/12/2024

CSRC approves Jiangnan New Materials' IPO registration

On December 13th, the China Securities Regulatory Commission issued a reply regarding the approval of the initial public offering of shares by Jiangxi Jiangnan New Materials Technology Co., Ltd. It is reported that Jiangnan New Materials plans to list on the main board of the Shanghai Stock Exchange, with CITIC SEC as the IPO sponsor, and plans to raise 384 million yuan. The prospectus shows that Jiangnan New Materials is mainly engaged in the research, development, production, and sales of copper-based new materials. The company's core products include copper ball series, copper oxide powder series, and high-precision copper-based heat sink series. The self-developed copper ball series products have been applied in various types and processes of PCB and copper plating process of photovoltaic cell panels. The copper oxide powder series products have been applied in PCB copper plating process, lithium battery PET composite copper foil manufacturing, and organosilicon monomer synthesis catalyst fields. The high-precision copper-based heat sink series products have been applied in the field of PCB embedded heat dissipation technology. Currently, the company's downstream customers cover most of the leading PCB manufacturing enterprises at home and abroad, including Avary Holding, Suzhou Dongshan Precision Manufacturing, Jianding Technology, Shennan Circuits, Han Yu Bode, Shenzhen Kinwong Electronic, Zhichao Technology, Aoshikang Technology, Victory Giant Technology, Suntak Technology, Dingying Electronics, Bomin Electronics, and others.

13/12/2024

A shares subscription | Zhongli shares (603194.SH) open subscription, focusing on the production of electric industrial vehicles.

On December 13, Zhongli Group (603194.SH) started its subscription, with an issue price of 20.32 yuan per share, a subscription limit of 14,500 shares, a price-to-earnings ratio of 10.11 times, listed on the Shanghai Stock Exchange, and Guotai Junan Securities as its exclusive sponsor. The prospectus disclosed that Zhongli Group is a high-tech enterprise focusing on the research and development, production, and sales of industrial vehicles such as electric forklifts. It now has the research and production capabilities of four major categories and over a hundred specifications and models of products, widely used in various fields such as logistics warehousing, electrical machinery, food and beverage, e-commerce, automobile manufacturing, wholesale and retail, and petrochemicals. In terms of global market share of electric forklifts, industrialized countries and regions generally have significantly higher market share of electric forklifts compared to internal combustion forklifts. However, China's market share of electric forklifts is relatively low. According to data from the World Industrial Vehicle Statistics Association and the Industrial Vehicle Branch of the China Construction Machinery Industry Association, the market share of electric forklifts globally in 2021 was 67.74%, while in Europe, it was as high as 87.99%. In contrast, China's market share was only 59.83%, still lagging behind developed countries and regions. With the continuous advancement of industrialization, China's electric forklifts will have vast development space in the future. It is understood that Zhongli Group plans to use the raised funds for the following projects after deducting issuance expenses: Financially, in the fiscal years of 2019, 2020, and 2021, the company achieved operating income of approximately 2.164 billion yuan, 2.477 billion yuan, and 4.206 billion yuan, respectively. The company's net profit was approximately 150 million yuan, 222 million yuan, and 354 million yuan, respectively. It is important to note that the prospectus specifically warns investors to pay attention to the risk of declining return on net assets. During the reporting periods, the company's weighted average return on net assets was 37.16%, 37.34%, 38.15%, and 16.30%, respectively. The proposed public offering of shares will raise additional funds of 1.336 billion yuan, accounting for 80.61% of the company's net assets as of June 30, 2022. Therefore, after this offering, there will be a significant increase in the company's net assets, and due to the time needed to implement the investment projects with the raised funds, the return on net assets may decrease to a certain extent before the projects achieve the expected level of return. Overall, there is a risk of a decrease in return on net assets due to rapid growth in net assets after the company goes public.

13/12/2024

The China Securities Regulatory Commission has approved Changyou Technology's IPO registration.

On December 12th, the China Securities Regulatory Commission issued a reply approving the initial public offering of shares by Jiangsu Changyou Environmental Protection Technology Co., Ltd. It is reported that Changyou Technology plans to list on the ChiNext board of the Shenzhen Stock Exchange, with Haitong Securities as the IPO sponsor, aiming to raise 763 million yuan. The prospectus shows that Changyou Technology is mainly engaged in the research, development, production, and sales of high-polymer composite materials products and lightweight sandwich materials products, including wind turbine nacelle covers for the wind power sector, lightweight sandwich materials used in wind blade production, nacelle molds, and components for rail transit vehicles. With rich experience in the application of high-polymer composite materials and lightweight sandwich materials, the company focuses on the supporting needs of emerging industries, continuously promotes product innovation, optimizes product structure, improves production base layout, expands product application fields, and forms a diversified structure covering wind power generation, rail transit, and other sectors. The wind turbine nacelle products cover all mainstream models in the domestic market, with production bases in Jiangsu, Hebei, Hunan, Inner Mongolia, Yunnan, and other areas, establishing a good business layout that radiates the national market.

12/12/2024

A-share IPO | Lin Tai New Materials (920106.BJ) opens IPO specializing in automotive automatic transmission friction plates

On December 10th, Lintai New Material (920106.BJ) started its subscription, with an issue price of 19.82 yuan per share and a subscription cap of 277,800 shares. The price-earnings ratio is 17.94 times, and it belongs to the Beijiao Exchange, with Soochow as its exclusive sponsor. According to the prospectus, Lintai New Material is a specialized new enterprise that focuses on the research, production, and sales of friction plates for automatic transmissions for vehicles, with its main products being wet paper-based friction plates and dual clutch plates for automatic transmissions including hydraulic automatic transmissions (AT), continuously variable transmissions (CVT), dual clutch transmissions (DCT), hybrid power special transmissions (DHT), and pure electric vehicle special transmissions (DET), among others. It is understood that the funds raised by Lintai New Material, after deduction of issuance expenses, are intended for the following projects: Financially, in the fiscal years 2021, 2022 and 2023, the company's operating income is expected to be approximately 132 million yuan, 176 million yuan and 207 million yuan respectively. The net profits are expected to be approximately 16.42 million yuan, 24.78 million yuan and 49.18 million yuan respectively. It is important to note that the prospectus specifically warns investors to pay attention to the risks associated with fluctuations in gross profit margins. The company's main business is the research, production, and sales of friction plates for automatic transmissions for vehicles. During the reporting period, the gross profit margins for the main business were 33.62%, 38.32%, 45.21% and 45.48% respectively, showing an upward trend. Since 2024, the decline in prices of new energy vehicles and traditional fuel vehicles has intensified competition in the automobile market, causing significant price competition pressure for most automobile manufacturers. The company's products are core components of automobiles, and their production and sales are affected by fluctuations in the automobile industry. If future competition in the automobile market intensifies, downstream automobile manufacturers reduce retail prices, which may lead to a decrease in the company's product prices and gross profit margins. Additionally, if the company is unable to effectively control product costs due to a decrease in unit price or an increase in raw material prices, or if the company fails to timely introduce technologically advanced products to participate in market competition, it could have an adverse impact on the company's gross profit margin and profitability.

10/12/2024

Kofon shares announced the termination (withdrawal) of the GEM IPO, as one of the leading segmented silicone oil companies in China.

On December 8th, Zhejiang Kefeng Organosilicon Co., Ltd. (referred to as Kefeng Corporation) terminated its IPO on the Shenzhen Stock Exchange ChiNext Board. Due to the withdrawal of the issuance and listing application by Kefeng Corporation and the sponsor, in accordance with the "Shenzhen Stock Exchange Stock Issuance and Listing Review Rules (2024 Revision)" Article 62, the Shenzhen Stock Exchange decided to terminate the issuance and listing review. According to the prospectus, Kefeng Corporation is a high-tech enterprise specializing in the research, development, production, and sales of organic silicon products, with organic silicon application materials as its main business. It is a national-level specialized and new "little giant" enterprise. Its main products include segmented silicone oil, amino silicone oil, post-finishing aids, pre-treatment aids, dyeing and printing aids, nano-liquid dispersed dyes, hexamethyldisiloxane, etc. The company's product categories are complete, its business chain is intact, and it has become one of the leading segmented silicone oil companies in China. Four products developed by Kefeng Corporation, namely "Versatile Hydrophilic Amino Silicone Oil", "Cotton-specific Segmented Polyether Hydrophilic Amino Silicone Oil", "Dyeing and Sweat-absorbing Agent KF-1474", and "Cotton Fabric Special Hydrophilic Segmented Silicone Oil SSK-90", have been recognized by the Zhejiang Provincial Department of Economy and Information Technology (Zhejiang Provincial Economic and Information Committee) as reaching the leading level of technology in the country and are identified as provincial-level industrial new products (new technologies). The company has established good business cooperation with downstream professional large and medium-sized chemical enterprises such as Rudolf Chemical, Huntsman Textile, and Demavak. Its products and technologies have been recognized by customers, accumulating many high-quality customer resources. During the reporting period, the main raw materials purchased by Kefeng Corporation are DMC, isopropanol, and other chemical materials. The company's main suppliers during the reporting period include Zhejiang Zhongtian Dongfang Fluorosilicone Materials Co., Ltd., Luxi Chemical Group Silicon Chemical Branch, Hoshine Silicon Industry Co., Ltd., Shandong Jinling Chemical Co., Ltd., etc. With the development of technology and the transformation and upgrading of the economic structure, the deep processing and application of organic silicon, especially in high-tech product application areas, continues to expand. Emerging industries such as 5G communication, new energy, consumer electronics, etc., are showing a trend of vigorous development. The rapid popularization and upgrading of products and supporting infrastructure in the above-mentioned industries have greatly driven the growth of demand for organic silicon products in the upstream of the industrial chain. The company also seizes opportunities, continuously expands horizontally and vertically in the textile dyeing aids and organic silicon industry chain, actively cultivates new profit growth points, and its subsidiary Quzhou Kefeng's products can be widely used in the fields of electronics, medical care, new energy, etc., which are key development directions for strategic emerging industries. In 2022, Quzhou Kefeng's new products achieved operating income of 26.1584 million yuan. At the same time, the company is studying the technology of lithium battery additives borate ester (TMSB) and phosphate ester (TMSPA). Once the technology is mature and put into the market, it can effectively expand the company's profit growth space. In terms of finance, in 2020, 2021, and 2022, Kefeng Corporation's operating income was 314 million yuan, 519 million yuan, and 440 million yuan respectively, while the net profit of the company during the same period was approximately 37.2202 million yuan, 73.0955 million yuan, and 64.5185 million yuan respectively. According to Kefeng Corporation's prospectus, the company's main raw materials are DMC, isopropanol, and hydrogen-containing bifunctional heads. During the reporting period, the direct material costs accounted for a high proportion of the main operating costs, namely 91.77%, 94.40%, and 92.42% (excluding freight). The fluctuation of raw material prices is an important factor affecting the company's gross profit margin. In recent years, the unit prices of some raw materials purchased by the company have undergone significant fluctuations. If the prices of raw materials continue to rise rapidly in the short term or fluctuate frequently in the future, and the company cannot promptly take effective measures, it may affect the market competitiveness of the company's products and have a negative impact on the company's revenue growth and profit improvement.

09/12/2024

A-share subscription | Boket Test (301598.SZ) starts subscription as a supplier of intelligent testing integrated solutions.

On December 9th, Boko Testing (301598.SZ) started the subscription process with an offering price of 38.46 yuan per share and a maximum subscription limit of 14,500 shares. The price-earnings ratio is 24 times, and it belongs to the ChiNext board of the Shenzhen Stock Exchange, with CITIC SEC as its exclusive sponsor. According to the prospectus, Boko Testing is a supplier that provides intelligent testing solutions through the use of modern testing and experimentation technology. Its main business includes research, development, design, manufacturing, sales, and system integration of servo hydraulic testing equipment and automotive testing and experimental equipment. The company's products and services cover the research and production sectors and are widely used in industries such as civil construction, rail transportation, aerospace, nuclear power, telecommunications, marine, and automotive. During the reporting period, the company's operating income is composed by business category as follows: It is understood that after deducting issuance expenses, the funds raised by Boko Testing are intended for the following projects: Financially, in the fiscal years 2021, 2022, and 2023, the company is expected to achieve operating revenues of approximately 405 million yuan, 459 million yuan, and 469 million yuan, respectively. The net profits are expected to be approximately 82.23 million yuan, 97.63 million yuan, and 96.17 million yuan respectively. Investors are advised to pay attention to the risk of long project acceptance periods as highlighted in the prospectus. The overall cycle from production to acceptance of the company's products is long, and it is subject to factors such as project size, technical complexity, customer site installation environment, and acceptance conditions, resulting in significant differences in execution periods. Typically, it takes 1-6 months from contract signing to design confirmation, 2-9 months for product delivery, 1-6 months for on-site installation, and 1-9 months for on-site installation and trial operation to meet customer acceptance standards. If customers fail to timely complete the equipment acceptance process, it will not only impact the company's revenue recognition but also increase inventory holding costs and prolong the company's accounts receivable collection period, thereby increasing the company's liquidity risk to some extent.

09/12/2024

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