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Markets · Equity · IPO
Shanghai Labway Clinical Laboratory’s IPO to debut on Shenzhen Stock Exchange
2021/09/10 08:13:27

Sep 10, 2021 (China Knowledge) - Shanghai Labway Clinical Laboratory (301060) to start trading on the Shenzhen ChiNext Market Sep 13, next Monday. The firm has issued 48.06 mln shares priced at RMB 4.17 per share raising RMB 200.42 mln. Its price-to-earnings ratio (PE) stands at 15.82. During subscription the IPO was 5,717 times oversubscribed.

Sinolink Securities acts as the lead underwriter and sponsor for the IPO.

Shanghai Labway Clinical Laboratory offers medical laboratory and pathological diagnosis services. The Company provides genetic testing, clinical microbiology testing, blood and pathology testing, cytopathological diagnosis, and other services. Shanghai Labway Clinical Laboratory offers services in China.

In FY 2020, Shanghai Labway Clinical Laboratory garnered a total revenue of RMB 1.24 bln, up 7% YoY. In terms of net income, it achieved RMB 134 mln, rising 42% YoY. In H1 2021, the company reported revenue of RMB 771 mln, a YoY increase of 54%, and its net profits reached RMB 122 mln, up 105% YoY.

The company is in the pharmaceutical and biological industry that is currently made of 393 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 7,972 bln, industry’s average PE of 39 times. The pharmaceutical and biological industry’s index is up 7.62% year-to-date, ranking it the 18th place among all 29 broad industry groupings.

Shanghai Pharmaceuticals Holding Co.,Ltd (601607) takes up the top spot in terms of sales in the industry, reporting RMB 191.91 bln of sales in 2020, with a net profit of RMB 4.5 bln, at 10 times PE. The second largest is Jointown Pharmaceutical Group Co., Ltd (600998), a total revenue of RMB 110.86 bln and a net profit of RMB 3.08 bln, at 8 times PE. Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited (600332) ranked third. It garnered a total revenue of RMB 61.67 bln last year, and a net profit of RMB 2.92 bln, with 14 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 pharmaceutical and biological is 41 times and 50 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 20.93% and the U.S is up 29.75%.

There will be another 3 IPO debut next Monday, Jinsanjiang (Zhaoqing) Silicon Material Company Limited (301059), HHC Changzhou Corp. (301061) and Guangzhou Hexin Instrument Co.,Ltd. (688622).

Since January, a total of 345 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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