Jan 12, 2022 (China Knowledge) - Rastar Environmental Protection Materials (300834) to start trading on the Shenzhen ChiNext Market Jan 13, tomorrow. The firm has issued 48.43 mln shares priced at RMB 55.57 per share raising RMB 2.69 bln. Its price-to-earnings ratio (PE) stands at 49.48. During subscription the IPO was 5,387 times oversubscribed.
Shengang Securities acts as the lead underwriter and sponsor for the IPO.
Rastar Environmental Protection Materials Co.,Ltd. produces and sells chemical products. The Company manufactures and sells general purposep olystyrene, high impact polystyrene, and non-vulcanizable elastomers. Rastar Environmental Protectionmaterials markets its products throughout China.
In FY 2020, Rastar Environmental Protection Materials garnered a total revenue of RMB 1.31 bln, up 8% YoY. In terms of net income, it achieved RMB 221 mln, rising 117% YoY. In the first three quarters of 2021, the company reported revenue of RMB 1.46 bln, a YoY increase of 56%, and its net profits reached RMB 236 mln, up 77% YoY.
The company is in the basic chemicals industry that is currently made of 356 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 4,188 bln. The basic chemicals industry’s index is up 73.88% 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 8 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 13 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 9 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 17 times and 28 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 47.45% and the U.S is up 29.76%.
Since January, a total of 519 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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