New Stock Research Report | Massimo Holdings (01471) starts IPO today, introducing two cornerstone investors collectively subscribing for approximately HK$46.2 million.

Zhongmiao Holdings (01471) is a provider of insurance agency services in Shandong Province, China, dedicated to distributing various insurance products to businesses and household insurance users, covering (i) property insurance products; (ii) life and health insurance products; (iii) accident insurance products; and (iv) car insurance products. Public offering period: July 29 to August 1 Listing date: August 6 Joint sponsors: CITIC SEC, Ping An Insurance Capital (Hong Kong) Receiving bank: BOC HONG KONG Offering 35.3 million H shares, with 90% placement and 10% public offering, and an additional 15% over-allotment option If the public offering is subscribed 15 times or more and at least 50 times, the public offering portion will increase from 10% to 30%, 40% if subscribed at least 50 times and 100 times if subscribed at least 100 times; however, if the placement is undersubscribed while the public offering is fully subscribed, or both are fully subscribed but the public offering is subscribed less than 15 times, the public offering portion can be increased up to a maximum of 20%, subject to a minimum pricing requirement. The offering price per share is HK$7 to HK$10.2, raising up to approximately HK$360 million, representing approximately 25% of the total market value, with listing expenses of approximately HK$54.1 million. Based on a board lot of 500 shares, the subscription fee is HK$5,151.44. Based on the maximum price of HK$10.2, the market value is approximately HK$1.44 billion (calculated based on adjusted net profit of approximately RMB 43.74 million in 2023, with a price-to-earnings ratio of approximately 30 times). As of the end of April 2024, the average net asset value is approximately RMB 378 million. Public offering is divided into Group A (applicants for 5 million or less shares) and Group B (applicants for more than 5 million shares). Business: Revenues for 2021 to 2023 were RMB 119 million, RMB 148 million, and RMB 174 million respectively, with revenues of RMB 58.64 million for the first four months of 2024. Gross profits for 2021 to 2023 were RMB 48.04 million, RMB 67.25 million, and RMB 74.51 million respectively, with gross profits of RMB 24.83 million for the first four months of 2024. Net profits for 2021 to 2023 were RMB 26.99 million, RMB 36.34 million, and RMB 38.99 million respectively, with net profits of RMB 14.82 million for the first four months of 2024. Adjusted net profits for 2021 to 2023 wer...