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Markets · Equity · IPO
Sichuan Rongda Gold’s IPO to debut on Shenzhen Stock Exchange
2023/03/02 10:24:14

Mar 02, 2023 (China Knowledge) - Sichuan Rongda Gold (001337) to start trading on the Shenzhen Stock Exchange's Main Board Mar 3, tomorrow. The firm has issued 60.00 mln shares priced at RMB 7.09 per share raising RMB 425.4 mln. Its price-to-earnings ratio (PE) stands at 22.98. During subscription the IPO was 2,465 times oversubscribed.

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

Sichuan Rongda Gold Co. Ltd. offers precious metal mining services. The Company mines and sells gold concentrate, alloy gold, other mineral products. Sichuan Rongda Gold also provides geological prospecting services.

In FY 2021, Sichuan Rongda Gold garnered a total revenue of RMB 526 mln, down 3% YoY. In terms of net income, it achieved RMB 153 mln, falling 24% YoY. In H1 2022, the company reported revenue of RMB 289 mln, and its net profits reached RMB 121 mln.

The company is in the non-ferrous metal industry that is currently made of 135 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 2,946 bln, industry’s average PE of 28 times. The non-ferrous metal industry’s index is up 50.09% year-to-date, ranking it the 4th place among all 29 broad industry groupings.

Jiangxi Copper Company Limited (600362) takes up the top spot in terms of sales in the industry, reporting RMB 318.56 bln of sales in 2020, with a net profit of RMB 2.32 bln, at 12 times PE. The second largest is Aluminum Corporation of China Limited (601600), a total revenue of RMB 185.99 bln and a net profit of RMB 741 mln, at 22 times PE. Zijin Mining Group Company Limited (601899) ranked third. It garnered a total revenue of RMB 171.50 bln last year, and a net profit of RMB 6.51 bln, with 15 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 non-ferrous metal is 13 times and 20 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 17.74% and the U.S is up 46.87%.

There will be another 1 IPO debut tomorrow, Jht Design Co.,Ltd. (603061).

Since January, a total of 34 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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