New stock research report | Country Wealth Hydrogen Energy (02582) starts IPO today with introduction of 3 cornerstone investors subscribing to approximately HK$318 million.

Guofu Hydrogen (02582) is a leading hydrogen storage and transportation equipment manufacturer in China, and researches and manufactures hydrogen core equipment throughout the entire industry value chain, for hydrogen production, storage, transportation, refueling, and use. IPO Date: November 7th to 12th Listing Date: November 15th Joint sponsors: HAITONG INT'L, CITIC SEC Receiving Bank: Bank of China Asia 600 million H shares will be issued, with 90% allocated to placement and 10% to public offering. Should the public offering be subscribed 15 times or more but less than 50 times, the public offering ratio will increase from 10% to 30%. If subscribed 50 times or more but less than 100 times, it will increase to 40%. Subscriptions of 100 times or more will increase the ratio to 50%. If the placement is under-subscribed while the public offering is oversubscribed, or if both are fully subscribed but the public offering is subscribed less than 15 times, the public offering ratio can increase to a maximum of 20%, but must be priced at the lower limit. The IPO price per share is between 65 and 73 yuan, raising a maximum of 438 million yuan, accounting for approximately 5.7% of the total market value, with an estimated listing expenses of about 47.1 million yuan. Based on a price of 73 yuan, the estimated market value is about 7.6439 billion yuan. As of the end of May 24, the average net asset value is approximately 718 million yuan. The public offering is divided into Group A (applicants of 5 million or less) and Group B (applicants of over 5 million). Business: Revenue for the years 2021 to 2023 was 329 million yuan, 359 million yuan, and 522 million yuan respectively, and revenue for the first five months of 2024 was 64.28 million yuan. Gross profit for the years 2021 to 2023 was 31.77 million yuan, 39.02 million yuan, and 93.36 million yuan respectively, with gross profit for the first five months of 2024 at 1.25 million yuan. The company is strategically located in the Yangtze River Delta region, with convenient transportation and proximity to ports, and has abundant supply chain resources. Leveraging its location advantage and benefiting from favorable policies in the global and Chinese hydrogen energy industry and hydrogen core equipment industry, the company aims to become the center of the global hydrogen core equipment supply chain. The company currently provides four types of hydrogen equipment products to customers, including: (i) vehicle-mounted high-pressure hydrogen supply systems and related products; (ii) hydrogen refueling station equipment and related products; (iii) hydrogen liquefaction and liquid hydrogen storage and transportation equipment; and (iv) water electrolysis hydrogen production equipment and related products. Since its establishment, the company has focused on developing and manufacturing core components of hydrogen fuel cell vehicles (i.e. vehicle-mounted high-pressure hydrogen supply systems) and hydrogen transportation infrastructure (i.e. refueling stations) in the transportation sector in China. With its leading position in the industry in vehicle-mounted high-pressure hydrogen supply systems and refueling station equipment, the company has a deep understanding of the hydrogen transportation industry in China and can participate in the commercialization process of hydrogen transportation in China. For many years, the company has been committed to providing competitive products and services to customers, with a good market reputation and stable customer base. The company's customers mainly include fuel cell system integrators, vehicle manufacturers, domestic energy companies, and city bus operators, with revenue from the top five customers in 23 accounting for approximately 56.7% of total revenue, with revenue from the largest customer accounting for 16.5%. Approximately 56.1% of the funds raised will be used to expand the capacity of several products, approximately 33.9% will be used to enhance R&D capabilities, continuing technological upgrades and product iterations, approximately 10% will be used for operating funds and general corporate purposes to support business operations and growth. Pre-IPO financing: Multiple rounds of financing were conducted from October 17 to February 24, with the offer price discounted approximately 93.69% to 38.69% from the middle price, and a one-year lock-up period was established. Early investors included Ao Wen Venture Capital, Jinpu Intelligent, Yongyuan Wallet Power, Fan Chuang Industry, and Shuimu Hydrogen. Cornerstone Investors: Three cornerstone investors were introduced, subscribing for approximately 318 million Hong Kong dollars in shares, with Linyi Frontier Investment subscribing for approximately 109 million Hong Kong dollars, Zhangjiagang Industrial Capital subscribing for 100 million Hong Kong dollars, and Jiaxing State-owned Assets Supervision and Administration Commission subscribing for approximately 109 million Hong Kong dollars. Based on the middle price, this accounts for approximately 76% of the shares sold, with a six-month lock-up period. Major shareholders structure after listing: Chairman Wu Pinfang and General Manager Wang Kai hold 21.25% of the shares; Employee holding platform holds 4.09% of the shares; Early investors hold 68.93% of the shares; Other public H-share shareholders hold 5.73% of the shares. Brief comment: Guofu Hydrogen (02582) is a leading hydrogen storage and transportation equipment manufacturer in China, and researches and manufactures hydrogen core equipment throughout the entire industry value chain, for hydrogen production, storage, transportation, refueling, and use. Based on an upper limit price of 73 yuan, the estimated market value is about 76.439 billion yuan, but due to the company's significant investment in R&D and administrative expenses, the business is still operating at a loss. Three cornerstone investors were introduced, subscribing for approximately 318 million Hong Kong dollars in shares, accounting for approximately 76% of the shares sold at the middle price, with a six-month lock-up period, indicating a very high cornerstone share allocation. This article is provided by "Sinolink Securities", authored by Sinolink Securities analyst Chen Bohao; GMTEight editor: Jiang Yuanhua.