Sep 07, 2021 (China Knowledge) - China Railway Special Cargo Logistics (001213) to start trading on the Shenzhen Stock Exchange's Main Board Sep 8, tomorrow. The firm has issued 444.44 mln shares priced at RMB 3.96 per share raising RMB 1.76 bln. Its price-to-earnings ratio (PE) stands at 50.69. During subscription the IPO was 982 times oversubscribed.
China International Capital Corporation (CICC) acts as the lead underwriter and sponsor for the IPO.
China Railway Special Cargo Logistics offers cargo logistics services. The Company provides commodity automotive logistics, cold chain logistics, bulk cargo logistics, and other services. China Railway Special Cargo Logistics provides its services throughout China.
In FY 2020, China Railway Special Cargo Logistics garnered a total revenue of RMB 8.46 bln, down 2% YoY. In terms of net income, it achieved RMB 353 mln, falling 38% YoY. In H1 2021, the company reported revenue of RMB 4.41 bln, a YoY increase of 28%, and its net profits reached RMB 192 mln, up 15% YoY.
The company is in the transportation industry that is currently made of 124 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 2,981 bln, industry’s average PE of 19 times. The transportation industry’s index is up 16.83% year-to-date, ranking it the 14th place among all 29 broad industry groupings.
Xiamen C&D Inc. (600153) takes up the top spot in terms of sales in the industry, reporting RMB 432.95 bln of sales in 2020, with a net profit of RMB 4.5 bln, at 5 times PE. The second largest is Wuchan Zhongda Group Co.,Ltd. (600704), a total revenue of RMB 403.97 bln and a net profit of RMB 2.75 bln, at 10 times PE. Xiamen Xiangyu Co., Ltd. (600057) ranked third. It garnered a total revenue of RMB 360.21 bln last year, and a net profit of RMB 1.3 bln, with 10 times PE.
The average industry’s PE for the same or similar stocks on Hong Kong Exchange (HKEx) and the U.S. stock markets for transportation is 12 times and 30 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 33.67% and the U.S is up 19.24%.
There will be another 1 IPO debut tomorrow, Hangzhou Biotest Biotech Co.,Ltd. (688767).
Since January, a total of 338 companies have listed on either Shanghai or Shenzhen Stock Exchange, most are mainly in the machinery equipment, electronics and pharmaceutical and biological industries.
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