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Markets · IPO
Beijing Ctj Information Technology’s IPO to debut on Shenzhen Stock Exchange
2022/05/17 03:11:31

May 17, 2022 (China Knowledge) - Beijing Ctj Information Technology (301153) to start trading on the Shenzhen ChiNext Market May 18, tomorrow. The firm has issued 27.00 mln shares priced at RMB 33.68 per share raising RMB 909.36 mln. Its price-to-earnings ratio (PE) stands at 24.36. During subscription the IPO was 4,358 times oversubscribed.

Huatai United Securities acts as the lead underwriter and sponsor for the IPO.

Beijing CTJ Information Technology Co.,Ltd. develops enterprise software products. The Company produces electronic security solutions, comprehensive financial business management systems, financial management plan systems, comprehensive financial business management systems, and others. Beijing CTJ Information Technology also provides operation and maintenance services.

In FY 2020, Beijing Ctj Information Technology garnered a total revenue of RMB 587 mln, up 49% YoY. In terms of net income, it achieved RMB 126 mln, rising 76% YoY. In H1 2021, the company reported revenue of RMB 299 mln, a YoY increase of 33%, and its net profits reached RMB 52 mln, up 34% YoY.

The company is in the computer industry that is currently made of 306 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 2,763 bln, industry’s average PE of 34 times. The computer industry’s index is down 22.64% year-to-date, ranking it the 30th 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 36 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 18 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 17 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 19 times and 40 times, respectively. On a year-to-date basis, the industry’s index on the HKEx declines 13.66% and the U.S is up 1.10%.

Since January, a total of 127 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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