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Markets · Equity · IPO
Shanghai Ziyan Foods’s IPO to debut on Shanghai Stock Exchange
2022/09/23 10:25:36

Sep 23, 2022 (China Knowledge) - Shanghai Ziyan Foods (603057) to start trading on the Shanghai Stock Exchange's Main Board Sep 26, next Monday. The firm has issued 42.00 mln shares priced at RMB 15.15 per share raising RMB 636.3 mln. Its price-to-earnings ratio (PE) stands at 22.99. During subscription the IPO was 2,314 times oversubscribed.

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

Shanghai Ziyan Foods Co., Ltd. manufactures and distributes cooked food products. The Company distributes ziyan baiwei chicken, fuqifeipian, cane pepper chicken, and other braised food products. Shanghai Ziyan Foods markets its products worldwide.

In FY 2021, Shanghai Ziyan Foods garnered a total revenue of RMB 3.09 bln, up 18% YoY. In terms of net income, it achieved RMB 320 mln, falling 11% YoY. In H1 2022, the company reported revenue of RMB 1.64 bln, a YoY increase of 17%, and its net profits reached RMB 115 mln, down 27% YoY.

The company is in the food&beverage industry that is currently made of 120 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 5,976 bln, industry’s average PE of 37 times. The food&beverage industry’s index is down 14.06% year-to-date, ranking it the 28th place among all 29 broad industry groupings.

Kweichow Moutai Co.,Ltd. (600519) takes up the top spot in terms of sales in the industry, reporting RMB 97.99 bln of sales in 2020, with a net profit of RMB 46.7 bln, at 40 times PE. The second largest is Inner Mongolia Yili Industrial Group Co.,Ltd. (600887), a total revenue of RMB 96.89 bln and a net profit of RMB 7.08 bln, at 22 times PE. Henan Shuanghui Investment & Development Co.,Ltd. (000895) ranked third. It garnered a total revenue of RMB 73.94 bln last year, and a net profit of RMB 6.26 bln, with 16 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 food&beverage is 24 times and 30 times, respectively. On a year-to-date basis, the industry’s index on the HKEx declines 12.73% and the U.S is up 16.25%.

There will be another 3 IPO debut next Monday, Harbin Sayyas Windows Co., Ltd. (301227), Shenzhen Edadoc Technology Co.,Ltd. (301366) and Cict Mobile Communication Technology Co., Ltd. (688387).

Since January, a total of 285 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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