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Markets · Equity · IPO
Zhejiang Zone-King Environmental Sci&Tech’s IPO to debut on SSE STAR Market
CKN
2021/09/15 07:37:07
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Sep 15, 2021 (China Knowledge) - Zhejiang Zone-King Environmental Sci&Tech (688701) to start trading on the Shanghai Stock Exchange's STAR Market Sep 16, tomorrow. The firm has issued 33.57 mln shares priced at RMB 7.48 per share raising RMB 251.1 mln. Its price-to-earnings ratio (PE) stands at 24.96. During subscription the IPO was 4,216 times oversubscribed.

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

Zhejiang Zone-King Environmental Sci&Tech offers comprehensive environmental protection services. The Company provides groundwater restoration, water pollution control, water body restoration, waste gas treatment, solid waste treatment, and other services. Zhejiang Zone-King Environmental Sci&Tech offers services in China.

In FY 2020, Zhejiang Zone-King Environmental Sci&Tech garnered a total revenue of RMB 341 mln, up 17% YoY. In terms of net income, it achieved RMB 45 mln, falling 19% YoY. In H1 2021, the company reported revenue of RMB 117 mln, a YoY increase of 120%, and its net profits reached RMB -3 mln, up 80% YoY.

The company is in the utility industry that is currently made of 202 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 3,469 bln, industry’s average PE of 21 times. The utility industry’s index is up 41.64% year-to-date, ranking it the 8th place among all 29 broad industry groupings.

Huaneng Power International,Inc. (600011) takes up the top spot in terms of sales in the industry, reporting RMB 169.44 bln of sales in 2020, with a net profit of RMB 4.56 bln, at 34 times PE. The second largest is GD Power Development Co.,Ltd. (600795), a total revenue of RMB 116.42 bln and a net profit of RMB 2.63 bln, at 13 times PE. Datang International Power Generation Co.,Ltd. (601991) ranked third. It garnered a total revenue of RMB 95.61 bln last year, and a net profit of RMB 3.04 bln, with 19 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 utility is 12 times and 37 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 46.37% and the U.S is up 8.75%.

There will be another 2 IPO debut tomorrow, GAD Environmental Technology Co., Ltd. (300854) and Shaanxi Meibang Pharmaceutical Group Co., Ltd. (605033).

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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