A-share subscription | Li Ju Thermal Energy (603391.SH) opens subscription. From 2020 to 2022, it ranks first in the domestic sub-field of vacuum and micro-pressure phase change hot water boilers.

On July 22, Lijure Energy (603391.SH) started its initial public offering with an issue price of 40 yuan per share, a subscription limit of 90,000 shares, a price-earnings ratio of 15.56 times. It is listed on the Shanghai Stock Exchange, with CITIC SEC acting as the sponsor and lead underwriter. The prospectus shows that Lijure Energy's main business is the research, production, and sale of hot water boilers and steam boilers, which are used for heating and domestic hot water supply, as well as steam supply for industrial production. With the continuous development of the boiler industry and the further promotion of energy saving and emission reduction policies, downstream customers in the industry have higher requirements for boiler operational efficiency, stability, and emissions of air pollutants. Lijure Energy has independently developed a series of boiler manufacturing technologies such as water-cooled premixed combustion technology, flue gas condensation heat exchange technology, and vacuum phase change heat exchange technology through years of research and technical accumulation. The hot water boilers and steam boilers produced using these technologies have the characteristics of high operational efficiency, low operating costs, high safety, and low nitrogen oxide emissions, and can be widely used in buildings, urban centralized heating, industrial steam supply, and other applications. Lijure Energy's products mainly target the domestic market, and are sold directly to customers through direct sales. The company has customers nationwide and has established sales networks in major provinces and cities. It can provide professional and customized services to meet local customer needs. Major customers include Qingdao Energy Group Co., Ltd., Shaanxi Construction Installation Group Co., Ltd., China Zhongyuan International Engineering Co., Ltd., Harbin Investment Group Co., Ltd., Henan Shuanghui Investment Development Co., Ltd., and Xianyang Emerging Distributed Energy Co., Ltd. According to certifications issued by the China Boiler and Boiler Water Treatment Association and the Industrial Boiler Branch of the China Electrical Appliance Industry Association: (1) from 2020 to 2022, Lijure Energy belongs to the top enterprises in the industrial boiler industry; (2) from 2020 to 2022, the company ranks first in the domestic vacuum/micro-pressure phase change hot water boiler sub-field. According to certifications issued by the Industrial Boiler Branch of the China Electrical Appliance Industry Association, from 2020 to 2022, the company's market share and ranking in the sub-field of hot water boilers ranked first. Financially, in 2020, 2021, 2022, and January to June 2023, Lijure Energy achieved operating revenues of approximately RMB 678 million, RMB 794 million, RMB 984 million, and RMB 406 million respectively. During the same periods, the net profits were approximately RMB 184 million, RMB 182 million, RMB 164 million, and RMB 58.554 million respectively. It is worth noting that Lijure Energy reminds investors in the prospectus to pay special attention to the risk of continuous decline in gross profit margin. The company's main business is the research, production, and sale of hot water boilers and steam boilers. In 2020, 2021, 2022, and January to June 2023, the gross profit margins of the company's main business were 52.86%, 48.56%, 40.16%, and 43.05% respectively, with overall high gross profit margins. If in the future, the prices of major raw materials for the company's hot water boilers and steam boilers products rise significantly, or market competition intensifies, the gross profit margin of the company's main business may face continued downward risk. In addition, if the company's lack of technological innovation or slow product development progress results in the inability to meet market demands or adapt to market competition, it may lead to a continuous decline in the company's overall gross profit margin and have an adverse impact on the company's profitability level.