A-share IPO | Shenglong shares (001257.SZ) opens for subscription as one of the important molybdenum suppliers in China

On March 20th, Shenglong shares (001257.SZ) started issuance with an issue price of 7.82 yuan per share and a subscription limit of 45,000 shares. The price-to-earnings ratio is 19.11 times. It belongs to the Shenzhen Stock Exchange, and Guotou Securities is its sponsor. According to the prospectus, the company is a leading large-scale molybdenum company in China, dedicated to the comprehensive development and utilization of non-ferrous metal mineral resources. During the reporting period, it mainly engaged in the production, processing, and sales of important strategic resources related to molybdenum products, with main products being molybdenum concentrates and molybdenum iron. The company is a cornerstone supporting the safe and stable operation of China's molybdenum industry chain, a strong guarantor of national strategic mineral resource production and supply, and an active practitioner of maintaining national industrial security. By the end of 2024, the company's share of molybdenum metal reserves and production in China had reached over 9%, playing a key role in the supply of raw materials, actively improving the tight supply of molybdenum resources, and effectively promoting the sustainable development of the molybdenum industry chain. The company is deeply integrated into the domestic molybdenum industry chain, and its subsidiary, Longyu Molybdenum, is a key supporting unit in Henan Province's tungsten-molybdenum-titanium-magnesium industry chain. It has multiple independent R&D core technologies in key stages of the molybdenum industry chain, participates in the formulation of multiple industry standards, and ranks at the forefront in core indicators such as recovery rate. The company is actively promoting the high-quality development of the molybdenum industry chain by improving the efficiency of mineral resource development, the level of comprehensive utilization, and cultivating new productive forces in the mining industry. The company's production capacity is outstanding. According to data from the United States Geological Survey (USGS), China's molybdenum metal production in 2024 is approximately 110,000 tons. The company's molybdenum metal production in 2024 was 10,600 tons, accounting for 9.64% of China's molybdenum metal production, making it one of China's important molybdenum suppliers. The company's mining assets are excellent. The Nanhihu Molybdenum Mine and the Songxian Angou Molybdenum-Polymetallic Mine under construction are both open-pit mines, with advantages of high mining efficiency, low production costs, and good safety conditions. The Nanhihu Molybdenum Mine is a super-large molybdenum-tungsten deposit, with proven production scale reaching 16.5 million tons per year, making it the largest single producing molybdenum mine in China. It has characteristics such as large reserves, shallow burial, easy selection, high degree of mechanization, and high safety coefficient, serving as an important energy resource supply base in China and a key mineral exploration base. The Songxian Angou Molybdenum-Polymetallic Mine under construction has good mineralization conditions, with high recoverable value of associated lead metal. Currently, the company's various capacity expansion projects are in full swing, and in the future, it will have a molybdenum ore processing capacity of 55,000 tons per day. The company has abundant resource reserves. By the end of 2024, the company had 5 large and medium-sized molybdenum mining rights (4 mining rights and 1 exploration right), with a molybdenum metal reserve of 710,500 tons, accounting for approximately 9.10% of the national molybdenum resource reserves (according to the 2024 China Natural Resources Bulletin published by the Ministry of Natural Resources). The resource reserves are huge, and the mines are all in the early stage of development, with a long future mining life and great economic benefits. The company's products have good quality, with characteristics of few impurities and great potential for deep processing, enjoying high recognition and reputation in the industry. Its main customers include China Baowu, Shandong Iron And Steel, Hunan Valin Steel, CITIC Pacific Special Steel Group, among others. Additionally, the company plans to build a project with an annual output of 20,000 tons of high-performance molybdenum materials to promote the extension and supplementation of the molybdenum industry chain, optimize product structure, and further enhance industry competitiveness and brand influence. The company's main business sustainability is strong. Its mines are located in China's largest molybdenum metal ore belt, the East Qinling Molybdenum Belt, with great potential for increasing reserves in producing mines and good prospects for developing reserve mines. According to the "Deep Survey Report of the Luanchuan County Lengshui-Chitudian Molybdenum-Lead-Zinc Polymetallic Mines" (Record No. 81 of the Henan Provincial Department of Natural Resources), the deep survey in the Lengshui-Chitudian area added 3.194 million tons of molybdenum metal reserves, with the Nanhihu Molybdenum Mine located in the core area of this region. The deep parts of this mine also have great potential for adding reserves, promising huge potential for deep resource integration and development. According to public information, exploration for increasing reserves has been carried out in the Angou Molybdenum-Polymetallic Mine in Songxian, yielding good results. The mine's ore-forming conditions are good, with multiple high-quality mining rights in the surrounding area. In the future, leveraging the strategic location advantages of the Angou Molybdenum-Polymetallic Mine, the company will engage in mergers and joint developments of surrounding resources. Moreover, the company also has mining reserves such as the Mazhuang selection ore in the garnet mine (with molybdenum as the main ore) and the Zhenglong Mining Daqinggou Molybdenum-Polymetallic Mine, which has an ore area of 52.09 square kilometers and contains multiple minerals such as molybdenum, copper, lead, zinc, and silver, with great potential for exploration and reserving. In terms of finances, in 2022, 2023, 2024, and January to June 2025, the company achieved operating revenues of approximately 1.911 billion yuan, 1.957 billion yuan, 2.864 billion yuan, and 2.289 billion yuan respectively. During the same period, the net profits were approximately 452 million yuan, 725 million yuan, 754 million yuan, and 602 million yuan respectively.