A-share subscription | Refractory materials manufacturer Reer Jinda (920191.BJ) starts subscription for top steel suppliers.

On April 9th, Rui'er Jingda (920191.BJ) started its subscription with an issue price of 7.71 yuan per share and a subscription limit of 1.9957 million shares. The price-to-earnings ratio is 14.99 times, and it belongs to the North Exchange. Kaiyuan Securities is its sponsoring institution. According to the prospectus, Rui'er Jingda is a high-tech enterprise specializing in providing technical solutions and key refractory materials for blast furnace ironmaking systems. It is mainly engaged in the research, development, production, and sales of efficient, long-lasting, energy-saving, green, and environmentally friendly technologies and refractory materials for ironmaking blast furnaces. According to the list of enterprises and equipment in the "Steel Industry Standard Conditions" published by the Ministry of Industry and Information Technology (as of the sixth batch), there are a total of 148 blast furnaces with a capacity of 2,000m or more in the country. Among them, there are 82 blast furnaces that have used the company's blast furnace linings, with a market share of 55.41%. With the trend of large-scale and efficient development of blast furnaces, the company's blast furnace linings have a significant market competitive advantage. It is reported that Rui'er Jingda's products are widely used by domestic well-known steel companies such as Baowu Group, Shougang Group, Angang Group, Hegang Group, Shagang Group, and Anfeng Steel, maintaining long-term stable cooperative relationships with them. In addition, the company's products are also exported to countries or regions such as Russia, South Korea, Vietnam, and Turkey, including well-known foreign enterprises such as NLMK Steel in Russia, Northern Steel in Russia, Formosa in Vietnam, and ISDERMIR Steel in Turkey. Data shows that from 2020 to 2024, although the domestic refractory materials production has slightly decreased, it remains relatively stable. By the end of 2024, China's refractory materials product output was 22.0711 million tons. In terms of downstream market demand, the downstream of the refractory materials industry mainly involves fields such as steel, building materials (cement, glass, ceramics, etc.), non-ferrous metals, chemicals, power, environmental protection, and military industries. According to statistics from the Chinese Refractories Industry Association, in terms of the demand structure of refractory materials in China, the steel industry is the largest consumer area, accounting for about 65% of the total, while the proportions of refractory materials in the cement, glass, ceramics, chemical, and non-ferrous metals industries are around 10%, 7%, 5%, 4%, and 3%, respectively. The main downstream application areas of the company's products are in the steel industry. Financially, in 2023, 2024, and 2025, the company's operating income is expected to be approximately 467 million yuan, 476 million yuan, and 478 million yuan, respectively. During the same period, the net profits are expected to be approximately 92.2662 million yuan, 84.8437 million yuan, and 92.6368 million yuan, respectively.