Markets· Equity· IPO

Qingdao Yunlu Advanced Materials Technology’s IPO to debut on SSE STAR Market

minutes 2021/11/25 07:14:10

Nov 25, 2021 (China Knowledge) - Qingdao Yunlu Advanced Materials Technology (688190) to start trading on the Shanghai Stock Exchange's STAR Market Nov 26, tomorrow. The firm has issued 30.00 mln shares priced at RMB 46.63 per share raising RMB 1.4 bln. Its price-to-earnings ratio (PE) stands at 63.51. During subscription the IPO was 3,441 times oversubscribed.

Guotai Junan Securities acts as the lead underwriter and sponsor for the IPO.

Qingdao Yunlu Advanced Materials Technology researches, develops, manufactures, and distributes advanced magnetic metal materials. The company produces amorphous alloys, nanocrystalline alloys, magnetic powders, and more. Qingdao Yunlu Advanced Materials Technology conducts businesses in domestically and internationally.

In FY 2020, Qingdao Yunlu Advanced Materials Technology garnered a total revenue of RMB 715 mln, up 2% YoY. In terms of net income, it achieved RMB 96 mln, rising 16% YoY. In the first three quarters of 2021, the company reported revenue of RMB 667 mln, a YoY increase of 28%, and its net profits reached RMB 89 mln, up 15% YoY.

The company is in the non-ferrous metal industry that is currently made of 127 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 3,101 bln, industry’s average PE of 53 times. The non-ferrous metal industry’s index is up 76.23% 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 15 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 16 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 21 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 24 times and 35 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 33.47% and the U.S is up 16.63%.

There will be another 2 IPO debut tomorrow, Guangzhou Jinzhong Auto Parts Manufacturing Co., Ltd. (301133) and Anhui Hwasu Co.,Ltd. (600935).

Since January, a total of 420 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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