A-share subscription | Kent Catalyst (603120.SH) opens subscription to provide services for customers in the fields of battery electrolyte, oilfield chemicals, etc.

On April 7th, Kent Catalyst (603120.SH) started its IPO with an issue price of 15 yuan per share and a subscription limit of 9,000 shares. The P/E ratio is 16.76 times, and it belongs to the Shanghai Stock Exchange with Sinolink as its sponsor. According to the prospectus, Kent Catalyst is a high-tech enterprise mainly engaged in the research, production, and sales of quaternary ammonium compound products. It has four major series of products including quaternary ammonium salts, quaternary ammonium bases, quaternary ammonium halides, and crown ethers, dedicated to providing high-quality products and services to customers in the fields of fine chemicals, molecular sieves, polymer materials, battery electrolytes, and oilfield chemicals. During the reporting period, the proportion of main business income to total operating income was 99.65%, 99.65%, 99.71%, and 99.64%, and the company's main business did not change. Financially, in 2019, 2020, and 2021, the company achieved operating income of approximately 466 million yuan, 486 million yuan, and 636 million yuan respectively. The net profit was approximately 69.4245 million yuan, 72.2527 million yuan, and 86.3393 million yuan respectively. It is worth noting that the prospectus specifically reminds investors to pay attention to the fluctuation risk of gross profit margin. From 2019 to June 2022, the company's comprehensive gross profit margin was 36.49%, 29.57%, 27.71%, and 27.46% respectively. After excluding the impact of different accounting methods for transportation and packaging fees under the new and old revenue standards, the gross profit margin was 36.49%, 33.03%, 30.89%, and 30.50% respectively. The company's gross profit margin has decreased significantly, mainly affected by factors such as product sales structure, selling prices, raw material costs, and market supply and demand. If there are significant adverse fluctuations in the future in the product sales structure, selling prices, raw material costs, market supply, and demand, there will still be a risk of a decrease in the company's comprehensive gross profit margin, which will adversely affect the overall profitability of the company.