A-share subscription | Tang Industries (873706.BJ) launches subscription as a professional manufacturer of asphalt mixing equipment and its supporting equipment.

On February 28th, Tie Tuo Machinery (873706.BJ) started its subscription, with an issue price of 6.69 yuan per share and a subscription limit of 1.0576 million shares. The price-earnings ratio is 16 times, and it belongs to the Beijing Stock Exchange. Zhongtai is its exclusive sponsor. The prospectus disclosed that Tie Tuo Machinery is a professional manufacturer of asphalt mixing equipment and its supporting equipment, integrating research and development, production, sales, and service. The company has established a full range of products including asphalt mixing equipment, asphalt mixing plant hot recycling equipment, RAP flexible crushing and screening equipment, aggregate shaping and sand making equipment, etc., covering the entire life cycle of asphalt mixture from production to recycling. As of June 30, 2023, the company owns 549 patents, including 43 domestic invention patents. During the reporting period, the main business income composition of the company is as follows: Tie Tuo Machinery's main products are asphalt mixing equipment and plant hot recycling equipment. Asphalt mixtures are mainly used in asphalt pavements of transportation infrastructure such as highways, roads, airports, and ports. The pavement formed by spreading and rolling asphalt has many advantages such as smooth surface, firmness, seamless joints, comfortable driving, wear resistance, low noise, short construction period, easy maintenance and repair, and suitability for phased construction. Tie Tuo Machinery focuses on asphalt mixing as the core, and has established a full range of products including asphalt mixing equipment, asphalt mixing plant hot recycling equipment, RAP flexible crushing and screening equipment, aggregate shaping and sand making equipment, etc., around the recycling and reuse of reclaimed asphalt pavement materials (RAP), crushing and screening, aggregate shaping and sand making, foaming of asphalt, etc. The above-mentioned equipment can be used as a standalone to meet specific needs of customers in different production stages of asphalt mixtures, or can be combined with other supporting equipment around the mixing equipment. It is understood that Tie Tuo Machinery plans to use the proceeds raised after deducting the issuance expenses for the following projects: Financially, in the fiscal years of 2020, 2021, and 2022, the company achieved operating income of approximately 344 million yuan, 244 million yuan, and 359 million yuan respectively. The net profit was approximately 42.67 million yuan, 16.88 million yuan, and 41.85 million yuan respectively. It is important to note that the prospectus specifically warns investors to pay attention to the risk of delayed acceptance of goods. At the end of each reporting period, the book value of the goods issued by the company was 25.9426 million yuan, 51.6414 million yuan, 66.7869 million yuan, and 72.8631 million yuan respectively, accounting for a large proportion of inventory at 30.40%, 46.44%, 56.59%, and 56.52% respectively, mainly due to equipment that has been shipped but has not completed installation inspection. If domestic customers fail to timely accept the goods after receiving them, the company will bear the risks of operating funds being occupied and income recognition being delayed.