Markets· Equity· IPO

Jiangsu Mupro Ift’s IPO to debut on Beijing Stock Exchange

minutes 2023/02/28 14:00:10

Feb 28, 2023 (China Knowledge) - Jiangsu Mupro Ift (836422) to start trading on the Beijing Stock Exchange Mar 1, tomorrow. The firm has issued 23.00 mln shares priced at RMB 8.5 per share raising RMB 195.5 mln. Its price-to-earnings ratio (PE) stands at 18.43. During subscription the IPO was 300 times oversubscribed.

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

Jiangsu Mupro Ift Corp. manufactures and distributes food additives. The Company produces citrates, sorbic acids, sorbates, phosphates, propionates, other products. Jiangsu Mupro Ift also operates import and export businesses.

In FY 2021, Jiangsu Mupro Ift garnered a total revenue of RMB 533 mln, up 31% YoY. In terms of net income, it achieved RMB 43 mln, rising 61% YoY. In H1 2022, the company reported revenue of RMB 356 mln, a YoY increase of 70%, and its net profits reached RMB 43 mln, up 163% YoY.

The company is in the basic chemicals industry that is currently made of 388 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 4,068 bln, industry’s average PE of 11 times. The basic chemicals industry’s index is up 69.38% year-to-date, ranking it the 3rd place among all 29 broad industry groupings.

Xinjiang Zhongtai Chemical Co.,Ltd. (002092) takes up the top spot in terms of sales in the industry, reporting RMB 84.20 bln of sales in 2020, with a net profit of RMB 146 mln, at 16 times PE. The second largest is Wanhua Chemical Group Co.,Ltd. (600309), a total revenue of RMB 73.43 bln and a net profit of RMB 10.04 bln, at 20 times PE. Sinochem International Corporation (600500) ranked third. It garnered a total revenue of RMB 54.16 bln last year, and a net profit of RMB 307 mln, with 24 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 basic chemicals is 10 times and 15 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 25.85% and the U.S is up 29.73%.

There will be another 2 IPO debut tomorrow, Anhui Huaren Health Pharmaceutical Co.,Ltd. (301408) and Naruida Technology Co., Ltd. (688522).

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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