A summary of the collection

Jisheng is a leading supplier of railway fastener systems in China's railway industry, and has more than 10 years of experience in supplying railway fastener systems to China's railway industry. According to Frost Sullivan, according to the revenue at the end of last year, Jiji is the largest supplier of railway fasteners in China, accounting for about 17.1% of the market value of railway fasteners in China.

The market is one of the seven pre-assembled suppliers of high-speed railway fastener systems that have obtained the product certificates of the China Railway Inspection and Certification Center, and it is also the only inland private company that has passed the certification. this recognition provides an effective entry certificate for new market participants.

Industry summary

The rail fastener system is an essential part of the bridge which is fixed to the sleeper and is the pillar to ensure the safe and effective operation of each lane. Generally speaking, the railway fastener system market can be divided into four boards, namely, high-speed road, urban road traffic series, traditional road and heavy road.

According to Frost Sullivan, the overall market size of China's railway fastener system and parts grew at a complex annual growth rate of 5.3% from 2010 to 2015, and is expected to grow at a complex annual growth rate of 10.8% from 2016 to 2020.

Cymbals

Most of the revenue of the collection comes from the sales of the railway fastener system, which has accounted for more than 90% of the total revenue in the last few years. It is expected that the sale of the road fastener system will continue to account for most of the total revenue in the near future. However, there is no guarantee that the demand of the railway fastener system will continue at its present level or its growth will continue in the future, for example, the Chinese government has changed its policy on road construction industry or made less investment in road construction.

Valuation

According to the IPO documents, assuming that the global development sale was completed on June 30, 2016, 897840000 shares were expected to be issued upon the completion of the sale of long-term shares, equivalent to HK $1.83 to HK $2.01 per share (at the exchange rate of HK $0.8891 to HK $1.00).