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Markets · Equity · IPO
Springsnow Food Group’s IPO to debut on Shanghai Stock Exchange
CKN
2021/10/12 02:53:10
3,752

Oct 12, 2021 (China Knowledge) - Springsnow Food Group (605567) to start trading on the Shanghai Stock Exchange's Main Board Oct 13, tomorrow. The firm has issued 50.00 mln shares priced at RMB 11.8 per share raising RMB 590 mln. Its price-to-earnings ratio (PE) stands at 22.99. During subscription the IPO was 3,742 times oversubscribed.

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

Springsnow Food Group processs, manufactures, and distributes animal meat products. The company produces white chicken, deep fried electic grilled chicken, charcoal grilled chicken, steamed chicken, powdered chicken, raw prepared products, and other related products. Springsnow Food Group markets its products worldwide.

In FY 2020, Springsnow Food Group garnered a total revenue of RMB 1.86 bln, down 4% YoY. In terms of net income, it achieved RMB 148 mln, rising 52% YoY. In H1 2021, the company reported revenue of RMB 989 mln, a YoY increase of 15%, and its net profits reached RMB 38 mln, down 61% YoY.

The company is in the food&beverage industry that is currently made of 113 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 6,843 bln, industry’s average PE of 47 times. The food&beverage industry’s index is down 3.06% year-to-date, ranking it the 26th place among all 29 broad industry groupings.

Kweichow Moutai Co.,Ltd. (600519) takes up the top spot in terms of sales in the industry, reporting RMB 97.99 bln of sales in 2020, with a net profit of RMB 46.7 bln, at 48 times PE. The second largest is Inner Mongolia Yili Industrial Group Co.,Ltd. (600887), a total revenue of RMB 96.89 bln and a net profit of RMB 7.08 bln, at 28 times PE. Henan Shuanghui Investment & Development Co.,Ltd. (000895) ranked third. It garnered a total revenue of RMB 73.94 bln last year, and a net profit of RMB 6.26 bln, with 17 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 food&beverage is 25 times and 38 times, respectively. On a year-to-date basis, the industry’s index on the HKEx declines 15.88% and the U.S is up 5.93%.

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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