Oct 14, 2021 (China Knowledge) - HUNAN RESUN (001218) to start trading on the Shenzhen Stock Exchange's Main Board Oct 15, tomorrow. The firm has issued 22.50 mln shares priced at RMB 45.51 per share raising RMB 1.02 bln. Its price-to-earnings ratio (PE) stands at 21.31. During subscription the IPO was 5,833 times oversubscribed.
Guosen Securities acts as the lead underwriter and sponsor for the IPO.
Hunan Resun manufactures surface active agents and detergents. The Company produces sodium alkenyl sulfonate, sodium lauroyl sarcosinate, soap, washing powder, liquid detergent, and other chemicals. Hunan Resun markets its products worldwide.
In FY 2020, HUNAN RESUN garnered a total revenue of RMB 2.37 bln, up 19% YoY. In terms of net income, it achieved RMB 222 mln, rising 69% YoY. In H1 2021, the company reported revenue of RMB 1.21 bln, a YoY increase of 21%, and its net profits reached RMB 95 mln, up 12% YoY.
The company is in the basic chemicals industry that is currently made of 336 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 3,953 bln, industry’s average PE of 38 times. The basic chemicals industry’s index is up 82.92% year-to-date, ranking it the 1st place among all 29 broad industry groupings.
Xinjiang Zhongtai Chemical Co.,Ltd (002092) takes up the top spot in terms of sales in the industry, reporting RMB 84.20 bln of sales in 2020, with a net profit of RMB 146 mln, at 15 times PE. The second largest is Wanhua Chemical Group Co.,Ltd. (600309), a total revenue of RMB 73.43 bln and a net profit of RMB 10.04 bln, at 16 times PE. Sinochem International Corporation (600500) ranked third. It garnered a total revenue of RMB 54.16 bln last year, and a net profit of RMB 307 mln, with 11 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 59.11% and the U.S is up 19.52%.
There will be another 1 IPO debut tomorrow, Zhuhai CosMX Battery Co., Ltd. (688772).
Since January, a total of 370 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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