Furong convertible Bond (Furong Technology) will be listed on August 10, 2023, and the price center is expected to be 141.50 yuan. Reference to similar industries, similar ratings of Chun 23 convertible bonds, Lixun convertible bonds. The industry of the company is similar, and the prospect of the industry is considerable. We estimate that the premium rate of conversion on the first day of listing is between 31% and 39%, the price is 137.31-145.69 yuan, and the price center is 141.50 yuan.

The company is the leader of domestic consumer electronics aluminum structural parts. The company was founded in 2011 and listed on the main board of the Shanghai Stock Exchange in 2019. The company deeply ploughs the field of consumer electronics aluminum structures and is the core supplier of 7 series aluminum alloy materials. Focusing on the high-end product market in the consumer electronics industry, the company is one of the top 200 suppliers of Apple Inc in the world and is also designated by Samsung.

The high-end smartphone market is growing against the trend, and the folding screen mobile phone market is expanding rapidly. Overall, global consumer electronics demand is slowing, smartphone performance is declining, but the high-end mobile phone market is growing against the trend. As the design of folding screen mobile phone becomes more and more mature, the global folding screen mobile phone market is showing a rapid growth trend. At the same time, traditional consumer electronics tracks such as laptops and tablets still maintain relatively stable shipments, and it is expected that there is still much room for development in the production capacity of consumer electronics aluminum structures driven by downstream demand.

Company highlights: 1) the company's products are widely used, including smartphones, tablets, laptops, wearable devices and other consumer electronics products. 2) the company has mastered the extrusion technology of high precision and high quality aluminum ingots and is the main supplier of 7 series aluminum alloy materials. 3) the company cooperates deeply with head manufacturers and is the main supplier to Apple Inc and Samsung.

Risk tips: international trade frictions, intensified industry competition and technology substitution, slowdown in consumer electronics demand, relative concentration of customer brands, fluctuation of raw material aluminum ingot prices, technology research and development risks