A-share subscription | Environmental-friendly cable material R&D company Taihu Yuanda (920118.BJ) opens subscription, pay attention to the high asset-liability ratio risk.

On August 13, Taihu Yuanda (920118.BJ) started its subscription, with an issue price of 17 yuan per share and a subscription limit of 346,700 shares. The price-earnings ratio is 11.8 times, and it belongs to the Beijiao Exchange, with CMSC as its exclusive sponsor. The prospectus discloses that Taihu Yuanda is a national high-tech enterprise and a national-level specialized and new "little giant" enterprise that integrates the research and development, manufacturing, sales, and services of environmentally-friendly polymer materials for cables. Its main products include "Taihu Yuanda" brand silane-crosslinked polyethylene cable materials, chemically-crosslinked polyethylene cable materials, low smoke halogen-free cable materials, semiconductor internal and external shield materials, and other special cable products. The company can also develop polymer materials with special properties according to customer requirements. During the reporting period, the main business revenue composition of the issuer is as shown in the table below: It is understood that Taihu Yuanda plans to use the funds raised after deducting issuance expenses for the following projects: The "Special Cable Environmental-friendly Polymer Material Industrialization Expansion Project" plans to add 4 production lines, including 1 set of equipment for peroxide-crosslinked cable materials for 500kV and below, 1 set of equipment for peroxide-crosslinked cable materials for 35kV and below, and 2 sets of equipment for new energy special material production lines. After the project is completed, the annual additional production capacity will be 20,000 tons of peroxide-crosslinked cable materials for 500kV and below, 12,000 tons of peroxide-crosslinked cable materials for 35kV and below, and 38,000 tons of new energy special materials. In terms of finance, in the 2021, 2022, and 2023 fiscal years, the company's operating income is expected to be approximately 1.071 billion yuan, 1.392 billion yuan, and 1.524 billion yuan, respectively. The company's net profit is expected to be approximately 45.8956 million yuan, 61.0914 million yuan, and 77.457 million yuan respectively. It should be noted that the prospectus specially reminds investors to pay attention to the high risk of high asset-liability ratio. In recent years, the company's business scale has grown rapidly, with large investments in new production lines, factories, etc., and the company relies heavily on debt financing due to a relatively single financing channel, resulting in a high asset-liability ratio. At the end of each reporting period, the company's asset-liability ratio (consolidated) was 63.57%, 61.40%, and 55.71% respectively. If the company cannot effectively broaden its financing channels in the future, it may face certain debt repayment risks. Additionally, the company's bank borrowing balance is high, and if interest rates rise in the future, it may increase the company's financial expenses and have an adverse effect on the company's operating performance.