HK Stock Market Move | CONCH MAT TECH (02560) rose more than 8% in the final trading session, but it is still below the IPO price, with its valuation higher than its industry peers.

CONCH MAT TECH (02560) rose by more than 8% in the final trading session, reaching a high of 1.51 Hong Kong dollars during trading hours, which is still a significant drop compared to the IPO price of 3 Hong Kong dollars. As of the time of writing, the stock was up by 7.3%, trading at 1.47 Hong Kong dollars, with a turnover of 5.3465 million Hong Kong dollars and a total market value of approximately 850 million Hong Kong dollars. Public information shows that Conch Materials is a company established by Conch Group to explore the field of fine chemical materials. Conch Materials is a supplier of fine chemical materials that produce and sell cement additives, concrete additives, and related upstream raw materials. Leveraging its research and development efforts and capabilities, Conch Materials also provides technical support related to its products to customers. According to data from Frost & Sullivan, based on sales and revenue of cement additives in the 2023 fiscal year, Conch Materials ranks first in China. The article "Why is it difficult for cornerstone investors to protect CONCH MAT TECH (02560) stock price which fell by 47.67% on its first trading day?" points out that after the completion of CONCH MAT TECH's IPO, its total share capital is close to 5.8 billion shares, with an issuance price of 3 Hong Kong dollars per share, resulting in an IPO market value of approximately 1.74 billion Hong Kong dollars. However, its net profit in 2023 was only 144 million RMB, corresponding to a P/E ratio of approximately 11.4 times in 2023. From a PB valuation perspective, as of June 30, 2024, CONCH MAT TECH's total assets were 2.416 billion RMB, total liabilities were 1.407 billion RMB, and net assets were 1 billion RMB, resulting in a PB valuation of 1.64 times the IPO market value. Looking at cement stocks listed on the Hong Kong stock market, most PB valuations are below 0.5 times, with even the cement industry leader Anhui Conch Cement only having a PB valuation of 0.509 times.