Oct 14, 2021 (China Knowledge) - Zhuhai CosMX Battery (688772) to start trading on the Shanghai Stock Exchange's STAR Market Oct 15, tomorrow. The firm has issued 155.71 mln shares priced at RMB 14.43 per share raising RMB 2.25 bln. Its price-to-earnings ratio (PE) stands at 20.56. During subscription the IPO was 3,077 times oversubscribed.
China Merchants Securities acts as the lead underwriter and sponsor for the IPO.
Zhuhai CosMX Battery manufactures and distributes energy storage equipment. The company produces nickel metal hydride batteries, lithium ion batteries, energy storage applications, car batteries, mobile phone batteries, laptop batteries, and others. Zhuhai CosMX Battery marktes its products throughout China.
In FY 2020, Zhuhai CosMX Battery garnered a total revenue of RMB 6.96 bln, up 31% YoY. In terms of net income, it achieved RMB 817 mln, rising 89% YoY. In H1 2021, the company reported revenue of RMB 5.09 bln, a YoY increase of 89%, and its net profits reached RMB 575 mln, up 127% YoY.
The company is in the electrical equipment industry that is currently made of 274 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 7,586 bln, industry’s average PE of 68 times. The electrical equipment industry’s index is up 60.72% year-to-date, ranking it the 4th 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 -27 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 18 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 48 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 14 times and 43 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 24.72% and the U.S is up 27.41%.
There will be another 1 IPO debut tomorrow, HUNAN RESUN Co., Ltd. (001218).
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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