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Markets · Equity · IPO
Sino-High (China)’s IPO to debut on Shenzhen Stock Exchange
2021/10/09 09:50:22

Oct 09, 2021 (China Knowledge) - Sino-High (China) (301076) to start trading on the Shenzhen ChiNext Market Oct 11, next Monday. The firm has issued 20.00 mln shares priced at RMB 31 per share raising RMB 620 mln. Its price-to-earnings ratio (PE) stands at 36.47. During subscription the IPO was 8,581 times oversubscribed.

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

Sino-High (China) manufactures and distributes chemical products. The company produces acetophenone derivatives, benzophenone derivatives, and other products. Sino-High (China) markets its products to Europe, United States, South Korea, Southeast Asia, and other countries and regions.

In FY 2020, Sino-High (China) garnered a total revenue of RMB 288 mln, down 1% YoY. In terms of net income, it achieved RMB 71 mln, falling 4% YoY. In H1 2021, the company reported revenue of RMB 161 mln, a YoY increase of 14%, and its net profits reached RMB 34 mln, down 13% YoY.

The company is in the basic chemicals industry that is currently made of 335 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 4,055 bln, industry’s average PE of 39 times. The basic chemicals industry’s index is up 86.83% year-to-date, ranking it the 1st place among all 29 broad industry groupings.

Wanhua Chemical Group Co.,Ltd. (600309) takes up the top spot in terms of sales in the industry, reporting RMB 73.43 bln of sales in 2020, with a net profit of RMB 10.04 bln, at 16 times PE. The second largest is Sinochem International Corporation (600500), a total revenue of RMB 54.16 bln and a net profit of RMB 307 mln, at 11 times PE. Kingfa Sci.&Tech. Co.,Ltd. (600143) ranked third. It garnered a total revenue of RMB 35.06 bln last year, and a net profit of RMB 4.59 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 basic chemicals is 24 times and 37 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 69.42% and the U.S is up 18.14%.

Since January, a total of 369 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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