China Shipbuilding Merger; Ind. Consolidation.

According to the current schedule, if there are no changes, there will be a total of 3 new shares available for subscription this week (September 2nd to 6th). Among them, there is 1 on the main board of the Shanghai Stock Exchange, 1 on the ChiNext board, and 1 on the Beijing Stock Exchange.

On September 6th, the main board company, Zhongxin Shares, which is initiating the new share subscription, is a large-scale domestic manufacturer of biodegradable pulp molded tableware. It has formed an annual production capacity of 123,700 tons of naturally degradable plant fiber molded products. In 2022, Zhongxin Shares held approximately 16% of the global market share in the field of pulp molded tableware and accounted for 20% of the national production of pulp molded tableware. Zhongxin Shares' products are widely used in catering, fast-moving consumer goods, medical, and industrial fields, with a focus on export sales, but domestic sales are showing a rapidly increasing trend.

2 Shares Have Disclosed Issuance Prices

As of the time of writing, the issuance prices for the 2 new shares being issued online this week have been disclosed: the ChiNext board's new share, Hui Han Shares, has an issuance price of 39.84 yuan, with an issue price-to-earnings ratio of 22.57 times, and the industry's average dynamic price-to-earnings ratio for the most recent month is 29.08 times; the Beijing Stock Exchange's new share, Zhongcao Flavoring, has an issuance price of 7.5 yuan, with an issue price-to-earnings ratio of 15.37 times, and the industry's average dynamic price-to-earnings ratio for the most recent month is 18.72 times.

Advertisement

Hui Han Shares is mainly engaged in the research and development, production, and sales of intelligent terminals for the Internet of Vehicles (IoV) and intelligent modules for the Internet of Things (IoT), while also providing customers with software and technical services.

In the field of IoV, Hui Han Shares provides IoV intelligent terminals, IoT intelligent modules, and solutions to leading vehicle manufacturers in the smart car industry and their first-tier suppliers, such as SAIC Motor, Chery Automobile, Geely Automobile, BYD, CATL, and Desay SV Automotive.

In other industrial IoT fields, Hui Han Shares provides intelligent modules and intelligent units to globally renowned IoT solution providers such as Microchip, Sierra, and Cerence.

In recent years, Hui Han Shares has seen high-speed growth in both revenue and profits. In terms of performance, from 2021 to 2023, the company achieved revenues of 420 million yuan, 580 million yuan, and 810 million yuan, with a compound annual growth rate of 38.85%; non-IFRS net profits were 58.38 million yuan, 83.33 million yuan, and 123.83 million yuan, with a compound annual growth rate of 45.64%.

From January to June 2024, Hui Han Shares achieved revenues of 430 million yuan, a year-on-year increase of 31.13%; non-IFRS net profit was 71.58 million yuan, a year-on-year increase of 38.51%. The company's IoV TBOX, eCall terminals, and intelligent modules already have a leading market position and product competitiveness.

In this IPO, Hui Han Shares raised a total of 699 million yuan, which will be used for the construction of the R&D center project, the intelligent car safety system, and the R&D and industrialization project of the 5G IoV TBOX.This week, Zhongxin Shares, a global leader in pulp-molded eco-friendly tableware, initiated its new share offering. The company has multiple production bases in places like Jinhua, Zhejiang, and Laibin, Guangxi, with an annual production capacity of 102,900 tons of naturally degradable plant fiber molded products, which are sold to over 80 countries and regions.

In terms of performance, from 2020 to 2022, Zhongxin Shares achieved operating revenues of 578 million yuan, 910 million yuan, and 1.316 billion yuan, with an average annual compound growth rate of 50.89%; net profits attributable to the company after deducting non-recurring gains and losses were 70.246 million yuan, 146 million yuan, and 206 million yuan, with an average annual compound growth rate of 71.25%. In the first half of 2023, Zhongxin Shares achieved operating revenues of 605 million yuan, with net profits attributable to the company after deducting non-recurring gains and losses at 95.0919 million yuan.

For this IPO, Zhongxin Shares plans to raise 1.538 billion yuan to invest in the construction of two projects with an annual production capacity of 100,000 tons each for degradable tableware made from sugarcane residue, as well as research and development center facilities.

In August, the average first-day increase for new shares reached 152%.

Looking back at the performance of new shares since the beginning of August, investor sentiment has continued to warm up. Out of the nine new shares that debuted on the A-share market in August, none experienced a price drop on the first day, with six of them doubling in value, accounting for 67%. Based on the closing price, the average first-day increase for the nine new shares listed since August has been 152.47%.

Among them, on August 16th, KeMa Technology officially debuted on the Growth Enterprise Market (GEM). KeMa Technology's issue price was 8 yuan per share, with an opening price of 35.33 yuan per share, resulting in a remarkable first-day increase of 368.25%, making it the highest first-day gainer for the entire month of August. Observing the entire year, KeMa Technology's first-day increase ranks second only to HuiCheng Vacuum, placing it in the second spot.

Located in Suzhou High-Tech Zone, KeMa Technology is a leading domestic enterprise in the advanced ceramic materials and components sector for the semiconductor industry in China, recognized as a national high-tech enterprise and a national-level "little giant" enterprise specializing in niche markets.

According to Frost & Sullivan data, in 2021, KeMa Technology accounted for approximately 14% of the total purchase scale of advanced structural ceramics for domestic semiconductor equipment in mainland China, and about 72% of the total supply scale of advanced structural ceramics by domestic suppliers for domestic semiconductor equipment.

At the same time, KeMa Technology is also one of the few advanced structural ceramic enterprises in China that has multiple ceramic materials and products certified by the international leading semiconductor equipment manufacturer Company A.