Zhejiang Hongchang Electrical Technology’s IPO to debut on Shenzhen Stock Exchange tomorrow
Jun 10, 2021 (China Knowledge) - Zhejiang Hongchang Electrical Technology (301008) to start trading on the Shenzhen ChiNext Market tomorrow. The firm has issued 16.67 mln shares priced at RMB 37.60 per share raising RMB 626.7 mln. Its initial price-to-earnings ratio (PE) stands at 35.2. During subscription the IPO was 8,409 times oversubscribed.
Guosen Securities acts as the lead underwriter and sponsor for the IPO.
Zhejiang Hongchang Electrical Technology is a China-based company primarily engaged in the research, development, production and sales of fluid solenoid valves, sensors and other electrical accessories. The Company’s main products include fluid solenoid valves, modular components and water level sensors. Fluid solenoid valves include washing machine valve, water purifier valve, smart toilet valve, and other kitchen and bathroom appliances valve. Modular components are mainly used in washing machines. Water level sensors are mainly used for water level identification of washing machine. The Company distributes its products within the domestic market and to overseas markets.
In FY 2020, Zhejiang Hongchang garnered a total revenue of RMB 577 mln, up 14% YoY. In terms of net income, it achieved RMB 81.9 mln, up 19.6% YoY. In Q1 2021, the company reported revenue of RMB 161.6 mln, a YoY increase of 83%, and its net profits reached RMB 20.4 mln, up 108.2% YoY.
The funds raised from the IPO will be used to build a R&D center and expand its annual output of magnetic fluid controllers for household appliances.
Copyright © 2018 www.chinaknowledge.com
Send feedback or comments to: firstname.lastname@example.org
For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: www.chinaknowledge.com
To access our page on Bloomberg, type CKFI