IPO gathering

Zhizhong Construction is mainly engaged in the production and sale of prestressed high-strength concrete pipe piles (PHC pipe piles). Its products include PHC pipe piles and steel pipe piles. The company is currently one of the manufacturers with the most complete range of products and specifications in the domestic PHC pipe pile industry. It is also an important production base for domestic large-diameter PHC pipe piles. It is an advantageous enterprise in the field of domestic large-diameter PHC pipe pile manufacturing, and has core technology that is difficult to replicate. The products produced by the company are of reliable quality, the supply of products is in short supply, and the development prospects are promising. As the company's fund-raising projects are put into operation, the company's production capacity will double, ushering in new developments.

Investment analysis

Referring to the valuation levels of listed companies related to the building materials industry and the company's issue prices, combined with the recent increase on the first day of SME IPO, Aijian Securities predicts that the price range on the first day of listing may be 25.87-29.85 yuan.

Analysts at Shenyin Wanguo believe there is 35% premium space for Zhizhong Construction, and the yield for offline subscriptions is 0.52%.

Shanghai Securities analysts believe that the company's reasonable price-earnings ratio is about 24 to 28.8 times, and the recommended inquiry range is 12.47 to 14.97 yuan. The current issue price is 19.9 yuan, which is above the normal valuation.

Comparing the first-day increase of listed SME companies since 2009 and the post-listing and recent performance of companies in the same industry, it is estimated that the opening price on the first day of listing was 25-28 yuan, an increase of about 30%-40%.

Risk warning

The main risks faced by the company: risk of fluctuations in raw material prices; risk of developing overseas markets; risk of pile-carrying ship operations.