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Markets · Equity · IPO
Zhangjiagang Haiguo New Energy Equipment Manufacturing’s IPO to debut on Shenzhen Stock Exchange
2021/09/23 06:56:51

Sep 23, 2021 (China Knowledge) - Zhangjiagang Haiguo New Energy Equipment Manufacturing (301063) to start trading on the Shenzhen ChiNext Market Sep 24, tomorrow. The firm has issued 21.06 mln shares priced at RMB 17.4 per share raising RMB 366.44 mln. Its price-to-earnings ratio (PE) stands at 14.88. During subscription the IPO was 7,499 times oversubscribed.

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

Zhangjiagang Haiguo New Energy Equipment Manufacturing produces and sells hardware products. The Company manufactures and sells petroleum machinery pressure vessel forgings, chemical machinery pressure vessel forgings, and other products. Zhangjiagang Haiguo New Energy Equipment Manufacturing markets its products throughout China.

In FY 2020, Zhangjiagang Haiguo New Energy Equipment Manufacturing garnered a total revenue of RMB 1.01 bln, up 57% YoY. In terms of net income, it achieved RMB 105 mln, rising 63% YoY. In H1 2021, the company reported revenue of RMB 521 mln, a YoY increase of 25%, and its net profits reached RMB 53 mln, up 18% YoY.

The company is in the electrical equipment industry that is currently made of 244 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 6,125 bln, industry’s average PE of 60 times. The electrical equipment industry’s index is up 52.20% year-to-date, ranking it the 7th place among all 29 broad industry groupings.

Shanghai Electric Group Company Limited (601727) takes up the top spot in terms of sales in the industry, reporting RMB 137.29 bln of sales in 2020, with a net profit of RMB 3.76 bln, at -30 times PE. The second largest is Xinjiang Goldwind Science&Technology Co.,Ltd (002202), a total revenue of RMB 56.27 bln and a net profit of RMB 2.96 bln, at 22 times PE. Longi Green Energy Technology Co., Ltd. (601012) ranked third. It garnered a total revenue of RMB 54.58 bln last year, and a net profit of RMB 8.55 bln, with 46 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 electrical equipment is 15 times and 43 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 38.52% and the U.S is up 29.79%.

There will be another 1 IPO debut tomorrow, Henan Liliang Diamond Co., Ltd. (301071).

Since January, a total of 361 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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