IPO subscription recommendations:

The company is mainly engaged in the design, printing and sale of cigarette packaging in China. The company is the second largest cigarette packaging supplier in Jiangxi Province, China. In 2012, the Group's paper cigarette market share in Jiangxi Province, China was about 17.7%, and the national share was about 4.2%. The company's main customers are the Jinsheng brand and the Hongta Mountain brand, which accounted for 67.3% and 12.2% of revenue in 2012, respectively. In 2012, China's cigarette companies adopted a bidding system for customers, which led to a drop in the average selling price of cigarette packaging products and a reduction in the gross profit margin of the company's products.

The compound growth rate of China's cigarette packaging industry from 2008 to 2012 was 3.5%, of which Jiangxi Province was 4.2%. The overall growth rate of the cigarette packaging market is stable, and it is expected that the compound growth rate will decrease in the next few years. According to statistics from 2012, the top ten cigarette packaging manufacturers in China accounted for 51% of the total market. Cigarette packaging manufacturers focused only on maintaining a good relationship with 2-5 users, and the relationship was relatively stable. The company's earnings per share in 2012 were HK$0.12. Based on the average listing price of HK$0.8, the company's static PE valuation in 2012 was about 6.6 times, and PB was 1.3 times. It is recommended to participate carefully in the subscription.