HK Stock Market Move | CONCH MAT TECH (02560) fell another 10% on the second day of listing, halving compared to the IPO price. The company is a leading player in the Chinese cement additives market.

CONCH MAT TECH (02560) was listed yesterday, and on the same day its share price dropped by over 47%. Today in early trading, it fell by over 10%, reaching a low of 1.39 Hong Kong dollars, which is half of its IPO price of 3 Hong Kong dollars. At the time of writing, it fell by 10.19% to 1.41 Hong Kong dollars, with a trading volume of 15.9373 million Hong Kong dollars. It is reported that Conch Material is a company established by the Conch Group to explore the field of fine chemical materials. Conch Material is a supplier of fine chemical materials that produces and sells cement additives, concrete additives, and related upstream raw materials. With its research and development efforts and capabilities, Conch Material also provides technical support related to its products to customers. According to data from Frost & Sullivan, based on the sales volume and revenue of cement additives in the 2023 fiscal year, Conch Material ranks first in China. In the article "On the first day of listing, the cornerstone investors 'round off' the country matching, why is it difficult to protect CONCH MAT TECH (02560) stock price after a 47.67% plunge?" it is pointed out that after CONCH MAT TECH's IPO, its total share capital is close to 580 million shares, and based on an issue price of 3 Hong Kong dollars per share, its IPO market value reaches about 1.74 billion Hong Kong dollars. However, its net profit in 2023 is only 144 million RMB, corresponding to a PE ratio of about 11.4 times in 2023. From the perspective of PB valuation, as of June 30, 2024, the total assets of CONCH MAT TECH were 2.416 billion RMB, total liabilities were 1.407 billion RMB, and net assets were 1 billion RMB, corresponding to a PB valuation of 1.64 times its IPO market value. Looking at the cement stocks listed in Hong Kong, most of them have PB valuations of less than 0.5 times, even the leading cement producer Anhui Conch Cement has a PB ratio of only 0.509 times.