A-share subscription | Hongyuan Shares (920018.BJ) started subscription. The product is used for large-capacity power transformers and other large-scale power transmission and transformation equipment.

On August 11, Hongyuan Group (920018.BJ) started its IPO with an issue price of 9.17 yuan per share and a maximum subscription limit of 1.4573 million shares. The price-earnings ratio is 12.34 times, and it belongs to the North Exchange. Minsheng Securities is its sponsor. The prospectus disclosed that Hongyuan Group mainly engages in the research and development, production, and sales of electromagnetic wires. Its products mainly include transposition conductors, paper-wrapped wires, enamelled wires, enamelled paper-wrapped wires, composite conductors, and various other categories. Currently, it is mainly used in high-voltage, large-capacity power transformers, rectifier transformers, and reactors and other large-scale power transmission and transformation equipment. Customers include TBEA Co., Ltd.(600089.SH), China XD Electric(601179.SH), Shandong Power Equipment, Shandong Power Transmission and Transformation, Baoding Tianwei Baobian Electric(600550.SH), and Hitachi Energy. According to the IEA Electricity Market Report, global electricity demand is expected to increase by about 2.2% by 2023. It is predicted that global electricity demand will grow at a faster rate in the next three years, with an average annual growth of 3.4% by 2026. From 2012 to 2023, the capacity of high-voltage transformers in China has been gradually increasing. According to data from the State Grid Corporation of China, from 2012 to 2023, the cumulative capacity of transformers with voltages of 220kV and above in China increased from 2,623.65 million kVA to 5,424 million kVA, with a compound annual growth rate of 6.83%. In terms of finance, in the fiscal years 2022, 2023, and 2024, the company achieved operating income of approximately 1.311 billion yuan, 1.461 billion yuan, and 2.072 billion yuan respectively, with net profits of approximately 49.9975 million yuan, 64.4657 million yuan, and 102 million yuan respectively.