Sep 15, 2021 (China Knowledge) - Shaanxi Meibang Pharmaceutical Group (605033) to start trading on the Shanghai Stock Exchange's Main Board Sep 16, tomorrow. The firm has issued 33.80 mln shares priced at RMB 12.69 per share raising RMB 428.92 mln. Its price-to-earnings ratio (PE) stands at 22.99. During subscription the IPO was 4,414 times oversubscribed.
Everbright Securities acts as the lead underwriter and sponsor for the IPO.
Shaanxi Meibang Pharmaceutical Group manufactures and distributes pesticide products. The Company produces insecticides, fungicides, herbicides, plant growth regulators, and other related products. Shaanxi Meibang Pharmaceutical Group markets its products worldwide.
In FY 2020, Shaanxi Meibang Pharmaceutical Group garnered a total revenue of RMB 569 mln, up 10% YoY. In terms of net income, it achieved RMB 79 mln, rising 3% YoY. In H1 2021, the company reported revenue of RMB 476 mln, a YoY increase of 30%, and its net profits reached RMB 69 mln, up 9% YoY.
The company is in the chemicals industry that is currently made of 417 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 7,724 bln, industry’s average PE of 40 times. The chemicals industry’s index is up 101.94% year-to-date, ranking it the 4th place among all 29 broad industry groupings.
China Petroleum & Chemical Corporation (600028) takes up the top spot in terms of sales in the industry, reporting RMB 2,105.98 bln of sales in 2020, with a net profit of RMB 32.92 bln, at 6 times PE. The second largest is Hengli Petrochemical Co.,Ltd. (600346), a total revenue of RMB 152.37 bln and a net profit of RMB 13.46 bln, at 13 times PE. Rongsheng Petrochemical Co., Ltd. (002493) ranked third. It garnered a total revenue of RMB 107.26 bln last year, and a net profit of RMB 7.31 bln, with 21 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 chemicals is 26 times and 36 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 103.36% and the U.S is up 16.33%.
There will be another 2 IPO debut tomorrow, GAD Environmental Technology Co., Ltd. (300854) and Zhejiang Zone-King Environmental Sci&Tech Co., Ltd. (688701).
Since January, a total of 353 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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