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Markets · Equity · IPO
Beijing Fjr Optoelectronic Technology’s IPO to debut on SSE STAR Market
CKN
2021/10/15 06:31:54
4,295

Oct 15, 2021 (China Knowledge) - Beijing Fjr Optoelectronic Technology (688272) to start trading on the Shanghai Stock Exchange's STAR Market Oct 18, next Monday. The firm has issued 19.00 mln shares priced at RMB 22.56 per share raising RMB 428.64 mln. Its price-to-earnings ratio (PE) stands at 20.18. During subscription the IPO was 3,981 times oversubscribed.

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

Beijing Fjr Optoelectronic Technology manufactures and distributes infrared thermal imaging products and systems. The company produces movements, thermal imagers, photoelectric systems, and other products. Beijing Fjr Optoelectronic Technology also operates import and export businesses.

In FY 2020, Beijing Fjr Optoelectronic Technology garnered a total revenue of RMB 327 mln, up 98% YoY. In terms of net income, it achieved RMB 86 mln, rising 520% YoY. In H1 2021, the company reported revenue of RMB 154 mln, a YoY increase of 27%, and its net profits reached RMB 31 mln, up 9% YoY.

The company is in the military industry that is currently made of 111 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 2,281 bln, industry’s average PE of 66 times. The military industry’s index is up 1.93% year-to-date, ranking it the 21st place among all 29 broad industry groupings.

China CSSC Holdings Limited (600150) takes up the top spot in terms of sales in the industry, reporting RMB 55.24 bln of sales in 2020, with a net profit of RMB 306 mln, at 228 times PE. The second largest is China Shipbuilding Industry Company Limited (601989), a total revenue of RMB 34.91 bln. Avic Xi’An Aircraft Industry Group Company Ltd. (000768) ranked third. It garnered a total revenue of RMB 33.48 bln last year, and a net profit of RMB 777 mln, with 89 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 military is 13 times and 38 times, respectively. On a year-to-date basis, the industry’s index on the HKEx declines 10.78% and the U.S is up 17.37%.

There will be another 2 IPO debut next Monday, Acrobiosystems Co.,Ltd. (301080) and Beijing Asiacom Information Technology Co., Ltd. (301085).

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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