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Markets · Equity · IPO
Beijing Asiacom Information Technology’s IPO to debut on Shenzhen Stock Exchange
2021/10/15 06:31:32

Oct 15, 2021 (China Knowledge) - Beijing Asiacom Information Technology (301085) to start trading on the Shenzhen ChiNext Market Oct 18, next Monday. The firm has issued 20.00 mln shares priced at RMB 21.44 per share raising RMB 428.8 mln. Its price-to-earnings ratio (PE) stands at 17.47. During subscription the IPO was 8,525 times oversubscribed.

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

Beijing Asiacom Information Technology offer information technology services. The company provides information technology equipment sales, station operation and maintenance, after sales insurance, delivery and implementation, and other services. Beijing Asiacom Information Technology provides its services throughout China.

In FY 2020, Beijing Asiacom Information Technology garnered a total revenue of RMB 1.21 bln, down 10% YoY. In terms of net income, it achieved RMB 99 mln, rising 31% YoY. In H1 2021, the company reported revenue of RMB 499 mln, a YoY decrease of 16%, and its net profits reached RMB 44 mln, down 12% YoY.

The company is in the computer industry that is currently made of 279 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 3,683 bln, industry’s average PE of 48 times. The computer industry’s index is up 1.80% year-to-date, ranking it the 22nd place among all 29 broad industry groupings.

Digital China Group Co.,Ltd. (000034) takes up the top spot in terms of sales in the industry, reporting RMB 92.06 bln of sales in 2020, with a net profit of RMB 624 mln, at 41 times PE. The second largest is Hangzhou Hikvision Digital Technology Co.,Ltd. (002415), a total revenue of RMB 63.50 bln and a net profit of RMB 13.39 bln, at 34 times PE. Inspur Electronic Information Industry Co.,Ltd (000977) ranked third. It garnered a total revenue of RMB 63.04 bln last year, and a net profit of RMB 1.47 bln, with 22 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 computer is 25 times and 57 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 1.42% and the U.S is up 21.88%.

There will be another 2 IPO debut next Monday, Acrobiosystems Co.,Ltd. (301080) and Beijing Fjr Optoelectronic Technology Co., Ltd. (688272).

Since January, a total of 372 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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