A-share subscription | Huitong Technology (301601.SZ) opens subscription as a provider of overall technical solutions for high-end equipment and products in the field of chemical engineering.

On January 6, Huatong Technology (301601.SZ) started its subscription, with an issue price of 11.8 yuan per share, a subscription limit of 8,500 shares, a price-earnings ratio of 18.28 times, listed on the Shenzhen Stock Exchange, and Shenwan Hongyuan Group Securities as its exclusive sponsor. According to the prospectus, Huatong Technology is a professional provider of comprehensive technical solutions for high-end equipment and products in the field of chemical engineering. It mainly engages in equipment manufacturing, design consulting, and general contracting in the production fields of polymer materials and hydrogen peroxide, serving companies producing high-performance nylon (PA66), bio-based nylon (PA56), biodegradable materials (PBAT/PBS), polyester (PET), and hydrogen peroxide (H2O2). The company holds a Class A qualification in chemical engineering design in the chemical, petrochemical, and pharmaceutical industries. Huatong Technology has established business partnerships with leading customers in the industry such as Jiangsu Yangnong Chemical, Pingmei Shenma, Cathay Biotech Inc., China Tianchen, Jiang Su Yida Chemical, Ningbo Changhong Polymer Scientific and Technical Inc., Wanhua Chemical Group, Yankuang Group, Shanxi Huayang, Hubei Yihua Chemical Industry, and Air Liquide Group. As of the end of the reporting period, in the projects that the company serves in operation or under construction, the cumulative design annual production capacity of nylon 66 production lines exceeds 143,000 tons, the cumulative design annual production capacity of PBAT biodegradable material production lines exceeds 300,000 tons, and the cumulative design annual production capacity of hydrogen peroxide fluidized bed production lines exceeds 3.1 million tons. The company holds market shares of approximately 20%, 11%, and 35% in nylon 66, PBAT/PBS, and hydrogen peroxide (fluidized bed) markets respectively, establishing a strong market position in the industry. It is reported that the main business revenue composition of Huatong Technology's various business categories is as follows: It is understood that after deducting the issuance expenses, the funds raised by Huatong Technology are planned to be used for the following projects: Financially, in the years 2021, 2022, and 2023, the company is expected to achieve operating income of approximately 498 million yuan, 813 million yuan, and 592 million yuan respectively. The net profit is expected to be approximately 84.58 million yuan, 130 million yuan, and 98.02 million yuan respectively. It should be noted that the prospectus specifically warns investors to pay attention to the fluctuation risks of product gross margin. In 2021, 2022, 2023, and the first half of 2024, the company's comprehensive gross profit margin was 33.41%, 28.53%, 33.73%, and 29.30% respectively. The gross profit margin of the main business was 33.27%, 28.46%, 33.68%, and 29.45% respectively, showing some fluctuations during the reporting period. The main business of the company mainly includes equipment manufacturing, design consulting, and general contracting, with customized equipment or services, and different order gross margins may vary. The gross margin is not only affected by fluctuations in labor costs and major raw material prices but also influenced by market conditions, competitive situations, business structures, and product sales prices. If significant adverse changes in other external or internal factors affecting gross margins occur in the future, there may be a high risk of a substantial decline in the company's main business gross margin, which could have a negative impact on the company's operating performance.