The Zhitong Finance App learned that on November 22, Weigang Technology (001256.SZ) began a subscription. The issue price was 13.64 yuan/share. The subscription limit was 14,000 shares, with a price-earnings ratio of 22.99 times. It belongs to the main board of the Shenzhen Stock Exchange, and Everbright Securities is its sole sponsor.
Since its establishment, Weigang Technology has been engaged in R&D, production and sales of label printing equipment. Its products include in-print equipment such as intermittent PS trademark printers (offset printing), modular flexible printers, etc., and post-press equipment such as die-cutting machines. With the technical advantages of its products, the company has developed into one of the leading enterprises in the field of domestic label printing equipment. The company is widely used in label printing in the fields of cosmetics, alcohol (wine, liquor, etc.), food and beverages, pharmaceuticals, household appliances, anti-counterfeiting, ticketing, electronic products, etc.
However, it is worth noting that China's label printing equipment manufacturing industry started relatively late. As a well-known domestic label printing manufacturer, Weigang Technology's products can already compete with well-known foreign brands such as Heidelberg in Germany and Gerais in Switzerland, but there is still a certain gap in market position, overall technical strength, production and sales scale, and product variety. At the same time, the company is facing competition from domestic indo-Chinese and post-press equipment manufacturers such as Wanjie Technology and Zhejiang Zhongte. In particular, as competition between printer manufacturers such as Dongguan Yuantie and the company intensified in the flexible printing press market, it had a certain degree of adverse impact on the pricing and gross margin of Weigang Technology products.
In addition, fluctuations in raw material prices have a great impact on the company's costs. The company's main raw materials include electrical components, mechanical components, measuring tools, etc. During the reporting period, the company's direct materials accounted for 89.26%, 86.51%, 85.25%, and 83.34% of the company's main business costs, respectively. If the prices of raw materials such as electrical components and mechanical components fluctuate greatly, it will make it more difficult for companies to control costs, and they may face business performance risks due to fluctuations in raw material prices.
After deducting the issuance fee, the funds raised in this offering will be invested in the following fund-raising investment projects according to priority:
On the financial side, in 2019, 2020, 2021 and the first half of 2022, Weigang Technology achieved operating income of 382 million yuan, 380 million yuan, 451 million yuan and 194 million yuan respectively; the net profit achieved to the company's shareholders was 84.6811 million yuan, 103 million yuan, 96.1925 million yuan and 389.5974 million yuan respectively.