A-share subscription | New Asia Cable (001382.SZ) opens subscription. Its main products are power cables, cables for electrical equipment, and overhead conductors.

On March 11th, New Asia Cable (001382.SZ) started its initial public offering at a price of 7.4 yuan per share, with a maximum subscription limit of 18,500 shares. The price-to-earnings ratio was 18.71 times, industry average P/E ratio was 18.91 times, and it is listed on the Shenzhen Stock Exchange's main board, with GF SEC as the lead underwriter. According to the prospectus, New Asia Cable is a company specializing in the research and development, production, and sales of wires and cables, with its main products including power cables, wires for electrical equipment, and overhead conductors. With years of independent technological innovation and market experience, the company's products are stable, reliable, and diverse, widely used in the fields of power, rail transportation, construction engineering, new energy, intelligent manufacturing equipment, etc. In the field of power grids, wires and cables are important equipment for power networks, and the company has served the Southern Power Grid and State Grid, being one of the top 5 percent in terms of winning bids nationwide among nearly 350 cable enterprises. In the sector of overhead conductors, the company is a strong player in R&D and manufacturing of overhead conductor products, leading in sales in the cable industry in South China, with products used in various national and local key projects, showing remarkable supply performance. The actual funds raised this time, net of issuance costs, will be invested in the following projects in order of priority: Financially, in the fiscal years 2021, 2022, 2023, and January to June 2024, New Asia Cable achieved operating income of approximately 2.893 billion yuan, 2.763 billion yuan, 3.013 billion yuan, and 1.177 billion yuan, respectively. Net profits for the same periods were 96.4416 million yuan, approximately 111 million yuan, approximately 164 million yuan, and 55.2804 million yuan, respectively. New Asia Cable mentioned in the prospectus that the company faces risks of fluctuating gross profit margins. During the reporting period, the company's gross profit margins were 9.21%, 9.85%, 11.74%, and 9.96%, showing a fluctuating trend, mainly due to factors like fluctuations in raw material prices, restrictions from electricity grid customers' pricing mechanisms, longer fulfillment periods for some order contracts, and material costs not completely secured for unsold orders. If the company fails to take effective measures to address the impact of these factors, it may face risks of gross profit margin fluctuations, thus affecting the stability of its operational performance.