A-share subscription | Fangzheng Valve (920082.BJ) opens subscription for key supply network members such as PetroChina, Sinopec, CNOOC and other enterprises.

On December 17, Fangzheng Valve (920082.BJ) opened for subscription, with an issue price of 3.51 yuan per share and a subscription limit of 1.5817 million shares. The price-earning ratio is 8.39 times. It belongs to the Beijing Stock Exchange, with Zheshang as the sponsor (lead underwriter). The prospectus shows that Fangzheng Valve is a manufacturer that provides industrial pipeline control solutions. During the reporting period, the company mainly engaged in the design, manufacture, and sale of industrial valves. It has formed several product series mainly based on ball valves, gate valves, globe valves, check valves, butterfly valves, and wellhead equipment, which are applicable to various fields such as petroleum, natural gas, refining, chemical, power plants, and ships. Fangzheng Valve products have high brand awareness and strong competitive advantages in the industry. The company has obtained international certifications such as the American Petroleum Institute (API), European Union's Pressure Equipment Directive (PED), Canadian CRN certification, BV France Bureau Veritas Marine Approval, ABS American Bureau of Shipping Marine Approval, DNV Det Norske Veritas Marine Approval, and CCS China Classification Society Marine Approval. It is a key supplier network member of major domestic oil, gas, and petrochemical enterprises such as PetroChina, Sinopec, and CNOOC, as well as qualified suppliers for international energy and petrochemical giants such as Shell, BP, PDO, Petronas, and Sabic. According to the "2021 Global Valve Manufacturing Industry Market Status and Development Trend Analysis" released by the Prospective Industry Research Institute, China accounts for 17% of the global valve manufacturing industry market share, making it the second largest market after the United States, which has a share of 27%. Germany, Japan, and other European countries also have a significant market share. Overall, developed countries dominate the market with industrial development foundations, while China's rapid development has continued to increase its position and influence in the global industrial valve market. According to statistics from the China General Machinery Industry Association, as of December 31, 2020, there were 1,928 valve industry enterprises above a certain scale in China. With the increase in the number of enterprises, the overall technological level of the industry has also significantly improved. The localization rate of key equipment such as valves in oil and gas pipelines has exceeded 90%, and a group of companies with advanced valve production technology are gradually strengthening their competitiveness in the international market. As various engineering projects such as domestic oil and gas pipelines and power energy continue to advance, the industrial valve market in China continues to grow. According to GIA's forecast data, the market size of the valve industry in China will rise to 18.2 billion USD in 2026, with a compound annual growth rate of 6.2% from 2021 to 2026. On the financial side, in 2021, 2022, 2023, and January to June 2024, Fangzheng Valve achieved operating revenues of approximately 451 million yuan, 616 million yuan, 679 million yuan, and 406 million yuan, respectively. During the same period, net profits were approximately 22.1583 million yuan, 43.0113 million yuan, 60.593 million yuan, and 36.9034 million yuan.