A-share subscription | Fengbei Bio (603334.SH) starts subscription with existing biodiesel production capacity of 105,000 tons.

On October 27, Fengbei Biology (603334.SH) started its subscription, with an issue price of 24.49 yuan per share and a maximum subscription limit of 11,000 shares. It belongs to the Shanghai Stock Exchange, with a P/E ratio of 30.47, and Guotai Haitong is its sponsoring institution. The prospectus discloses that Fengbei Biology is a high-tech enterprise in the field of comprehensive utilization of abandoned resources, mainly producing resource-based products from waste oil and fats, forming a waste resource regeneration industry chain of "waste oil and fats - biofuels (biodiesel) - bio-based materials". The company's main business is the comprehensive utilization of waste oil and fat resources, with the oil and fat chemicals business as a subsidiary. The main products of the waste oil and fat resource utilization business are bio-based materials and biofuels, with bio-based materials mainly including pesticide additives, fertilizer additives, bio-diesel formulation products, and industrial-grade mixed oils; biofuels mainly include biodiesel; and the oil and fat chemicals business mainly produces DD oil and fatty acids. Fengbei Biology has reached long-term cooperation agreements with many leading enterprises in the agrochemical industry, such as Sdic Fengle Seed, Jiuyi Co., Ltd., Sichuan Lutianhua, Sichuan Meifeng Chemical Industry, and Shenzhen Batian Ecotypic Engineering. From 2022 to 2023, the company's biofuels will mainly be used in the European market, and from 2024, exports will gradually shift towards regions such as Singapore and Switzerland. By the end of 2024, the company's existing biodiesel production capacity is 105,000 tons, ranking sixth in China's biodiesel industry in terms of production capacity. Fengbei Biology stated that compared with comparable companies in the same industry such as Longyan Zhuoyue New Energy, Zhejiang Jiaao Enprotech Stock, and Longhai Biology, the company's net profit attributable to the parent after deducting non-recurring gains and losses in 2024 is less than Longyan Zhuoyue New Energy, but greater than Zhejiang Jiaao Enprotech Stock and Longhai Biology. In terms of finances, in 2022, 2023, and 2024, the company achieved operating income of approximately 1.709 billion yuan, 1.728 billion yuan, and 1.948 billion yuan respectively; and net profits of approximately 133 million yuan, 130 million yuan, and 124 million yuan respectively during the same period. Fengbei Biology stated that the operating cash flow was good from 2022 to 2023, but in 2024, the net cash flow from operating activities decreased, mainly due to the increase in the balance of operating accounts receivable.