A-share subscription | Speeda shares (001277.SZ) open for subscription. The business mainly revolves around hydraulic supports for coal mining equipment.

On August 23, Sudagufen (001277.SZ) started its subscription with an issue price of 32 yuan per share and a subscription limit of 19,000 shares. The price-earnings ratio is 15.05 times, and it belongs to the Shenzhen Stock Exchange, with Guosen as the sponsor and lead underwriter. According to the prospectus, Sudagufen is a specialized service company focusing on the full lifecycle management of mechanical equipment, dedicated to providing industrial customers with high-quality comprehensive aftermarket services for mechanical equipment. The business currently mainly revolves around hydraulic supports for fully mechanized coal mining equipment, providing comprehensive aftermarket services such as repair and remanufacturing, spare parts supply management, and sale/lease of second-hand equipment for coal production enterprises, as well as fluid connection products for mechanical equipment manufacturers. The company's services or products cover two areas: fully mechanized coal mining equipment and construction machinery, characterized by speed, professionalism, efficiency, and strong comprehensiveness, with each business complementing each other. Since its establishment, Sudagufen has continuously improved its service products through precise market positioning, helping customers focus on their main business. It has now developed into a major professional aftermarket service provider for fully mechanized coal mining equipment in China, with a wide range of service products and a broad service network covering major coal production areas such as Inner Mongolia, Shaanxi, Shanxi, Henan, Xinjiang, and maintaining long-term and stable cooperation relationships with large state-owned enterprises such as China Shenhua Energy Shendong Branch, Ningmei Group, Henan Energy and Chemical Group, Shanxi Coal Group, and China Railway Hi-tech Industry Corporation. In the coal mining machinery aftermarket service industry in China, there are many competitors, but they all have characteristics such as small scale, narrow service areas, and single product types. Apart from Sudagufen, there are very few comprehensive aftermarket service providers that can provide a full range of product services. Other enterprises in the industry that have a larger scale mainly compete with Sudagufen in spare parts supply, repair and remanufacturing. In terms of financials, in 2021, 2022, and 2023, Sudagufen's operating income is expected to be approximately 822 million yuan, 1.076 billion yuan, and 1.253 billion yuan respectively, with net profits of approximately 102 million yuan, 105 million yuan, and 162 million yuan respectively. It is important to note that Sudagufen mentioned in the prospectus that there is downstream industry volatility risk. The company mainly provides coal mining enterprises with aftermarket services for fully mechanized coal mining equipment. The utilization of existing equipment and the investment in new equipment by downstream coal mining enterprises will directly affect their demand for aftermarket services. The utilization rate of existing fully mechanized coal mining equipment and the investment plans for new equipment will be affected by the operational conditions of downstream coal industry. Therefore, the operating conditions of the downstream coal industry will indirectly affect the demand for aftermarket services for fully mechanized coal mining equipment by coal mining enterprises. Additionally, the operating conditions of the downstream coal industry directly affect the business performance of coal mining enterprises, which will indirectly affect the repayment situation of the company by impacting the downstream coal mining enterprises. In October 2021, the State Council issued the "Carbon Peak Action Plan before 2030", which will have a significant impact on the coal industry. If the Party Central Committee, the State Council, or other government departments further introduce policies regarding energy conservation and emission reduction, it will further affect the downstream coal industry. If downstream coal enterprises reduce their procurement of aftermarket services in the future, it will pose a risk of declining business performance for the company and affect the progress of the company's repayments.