Sep 23, 2022 (China Knowledge) - Cict Mobile Communication Technology (688387) to start trading on the Shanghai Stock Exchange's STAR Market Sep 26, next Monday. The firm has issued 786.31 mln shares priced at RMB 6.05 per share raising RMB 4.76 bln. During subscription the IPO was 812 times oversubscribed.
Shenwan Hongyuan Financing Services acts as the lead underwriter and sponsor for the IPO.
CICT Mobile Communication Technology Co., Ltd. manufactures and distributes telecommunications equipment. The Company produces system equipment, antenna feeder equipment, industry private network equipment, and other related equipment. CICT Mobile Communication Technology also provides digitization and communication engineering services.
In FY 2021, Cict Mobile Communication Technology garnered a total revenue of RMB 5.67 bln, up 25% YoY. In terms of net income, it achieved RMB -1174 mln, rising 33% YoY. In H1 2022, the company reported revenue of RMB 2.65 bln, a YoY increase of 82%, and its net profits reached RMB -184 mln, up 71% YoY.
The company is in the telecom industry that is currently made of 120 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 2,822 bln, industry’s average PE of 13 times. The telecom industry’s index is up 16.14% year-to-date, ranking it the 14th place among all 29 broad industry groupings.
China United Network Communications Limited (600050) takes up the top spot in terms of sales in the industry, reporting RMB 303.84 bln of sales in 2020, with a net profit of RMB 5.52 bln, at 15 times PE. The second largest is Zte Corporation (000063), a total revenue of RMB 101.45 bln and a net profit of RMB 4.26 bln, at 15 times PE. Jiangsu Zhongtian Technology Co.,Ltd. (600522) ranked third. It garnered a total revenue of RMB 42.08 bln last year, and a net profit of RMB 2.27 bln, with 45 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 telecom is 22 times and 34 times, respectively. On a year-to-date basis, the industry’s index on the HKEx declines 18.07% and the U.S is up 3.09%.
There will be another 3 IPO debut next Monday, Harbin Sayyas Windows Co., Ltd. (301227), Shenzhen Edadoc Technology Co.,Ltd. (301366) and Shanghai Ziyan Foods Co., Ltd. (603057).
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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