A-share subscription | Jiangshun Technology (001400.SZ) starts subscription. The asset-liability ratio far exceeds the industry average level.

On April 15th, Jiang Shun Technology (001400.SZ) started its subscription, with an issue price of 37.36 yuan per share, a subscription limit of 15,000 shares, a P/E ratio of 15.32 times, listed on the Shenzhen Stock Exchange, and Huatai United Securities as its sponsor. The prospectus shows that Jiang Shun Technology is mainly engaged in the research and development, design, production, and sales of aluminum extrusion dies and accessories, aluminum extrusion supporting equipment, precision mechanical parts, and other products. The company's main products are aluminum extrusion dies and accessories, aluminum extrusion supporting equipment, and precision mechanical parts. Among them, aluminum extrusion dies and accessories, aluminum extrusion supporting equipment are key components in the downstream aluminum extrusion production. Aluminum extruded products are widely used and their applications continue to expand, particularly in areas such as architectural decoration, transportation, new energy, automotive lightweighting, electronics, aerospace, etc., holding an important position in the industry manufacturing system. According to data from the National Bureau of Statistics, from 2018 to 2024, China's aluminum extrusion production volume will reach 45.46 million tons, 52.52 million tons, 57.79 million tons, 61.05 million tons, 62.21 million tons, 63.03 million tons, and 67.83 million tons, continuously increasing in scale. With the deepening application of materials such as "aluminum instead of steel" and "aluminum instead of wood", especially the increasing demand in emerging fields such as photovoltaics, rail transportation, new energy vehicles, and automotive lightweighting, it has driven the development of the aluminum extrusion manufacturing industry in recent years. Currently, the company has established long-term and stable cooperation relationships with well-known domestic aluminum extrusion manufacturers such as Huajian Aluminum, Dongliang Aluminum, Anhui Xinbo Aluminum, Guangdong Haomei New Material Co., Ltd., MINTH GROUP, Ningbo Xusheng Group, XINGFA ALUM, as well as well-known foreign aluminum extrusion manufacturers such as WISPECO. After deducting the issuance expenses, the company plans to invest in the following projects: Financially, in 2022, 2023, and 2024, the company's operating income is expected to be approximately 892 million yuan, 1.043 billion yuan, and 1.136 billion yuan respectively; the net profit is expected to be approximately 139 million yuan, 146 million yuan, and 155 million yuan respectively. In terms of risks, the prospectus mentions that Jiang Shun Technology's asset-liability ratio in 2023 is significantly higher than the industry average, reaching 56.75%, far exceeding the industry average of 32.44%. The prospectus also states that during the reporting period, the company's overseas sales revenue accounted for 15.89%, 20.21%, and 25.43% of the current main business income respectively, mainly settled in US dollars and euros. Although the company has reasonably considered the impact of RMB exchange rate fluctuations when pricing sales, if the RMB appreciates significantly in the future, it may still have a certain adverse impact on the company's operating performance. On the other hand, in recent years, some countries and regions have seen a trend towards protectionism and national preference in international trade strategies and import-export policies. Although the company's overseas sales regions are relatively diversified, if there is an escalation in trade frictions in the future and related countries impose high tariffs on the company's export products, it may have an adverse impact on the company's overseas business.