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Markets· Equity· IPO

Henan Liliang Diamond’s IPO to debut on Shenzhen Stock Exchange

CKN
minutes 2021/09/23 06:59:36
5,466

Sep 23, 2021 (China Knowledge) - Henan Liliang Diamond (301071) to start trading on the Shenzhen ChiNext Market Sep 24, tomorrow. The firm has issued 15.09 mln shares priced at RMB 20.62 per share raising RMB 311.22 mln. Its price-to-earnings ratio (PE) stands at 18.54. During subscription the IPO was 9,804 times oversubscribed.

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

Henan Liliang Diamond produces and sells synthetic diamond products. The Company manufactures and markets diamond single crystal, diamond powder, cultivated diamond, and other products. Henan Liliang Diamond markets its products throughout China.

In FY 2020, Henan Liliang Diamond garnered a total revenue of RMB 245 mln, up 11% YoY. In terms of net income, it achieved RMB 73 mln, rising 16% YoY. In H1 2021, the company reported revenue of RMB 218 mln, a YoY increase of 125%, and its net profits reached RMB 108 mln, up 327% YoY.

The company is in the machinery equipment industry that is currently made of 462 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 4,484 bln, industry’s average PE of 33 times. The machinery equipment industry’s index is up 32.70% year-to-date, ranking it the 9th place among all 29 broad industry groupings.

CRRC Corporation Limited (601766) takes up the top spot in terms of sales in the industry, reporting RMB 227.66 bln of sales in 2020, with a net profit of RMB 11.33 bln, at 16 times PE. The second largest is Sany Heavy Industry Co.,Ltd. (600031), a total revenue of RMB 100.05 bln and a net profit of RMB 15.43 bln, at 13 times PE. China International Marine Containers (Group) Co., Ltd (000039) ranked third. It garnered a total revenue of RMB 94.16 bln last year, and a net profit of RMB 5.35 bln, with 7 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 machinery equipment is 44 times and 37 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 73.54% and the U.S is up 36.49%.

There will be another 1 IPO debut tomorrow, Zhangjiagang Haiguo New Energy Equipment Manufacturing Co., Ltd. (301063).

Since January, a total of 361 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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