According to Futu News on March 8,$WK GROUP (02535.HK)$On the first day, it rose 148% to HK$0.62, and the turnover exceeded HK$21 million.

Market Source: Futu Securities>

According to previously public information, in Futu's undercover trading on the previous trading day, Hongji Group opened higher and closed up 168% to HK$0.67, with a turnover of nearly HK$5.77 million, with a total market value of HK$1.34 billion; 10,000 shares per lot, without handling fees, earned HK$4,200 per lot.

In addition, according to previous public information, Hongji Group has received a total of 6,323 valid applications. The approximate percentage of purchased first-hand shares allotted for H shares is 2.57% of the total number of applications.

Company Overview

The company is a steel structure engineering contractor in Hong Kong, China, focusing on the supply, manufacture and installation of structural steel for construction projects in Hong Kong, China. Hongji Group was founded in 1999 and has since undertaken steel structure projects as a subcontractor. The company has two production facilities in Dongguan, China, and has internal capabilities to process and manufacture structural steel according to customer specifications. Currently, all of the company's structural steel production capacity is used to meet the needs of its own projects. According to industry reports, according to 2022 revenue, Hongji Group ranked third in the steel structure engineering industry in Hong Kong, China, with a market share of about 3.4% in 2022.

The company mainly focuses on playing the role of project management and supervision in project development, and appoints subcontractors to carry out most construction site projects under their supervision. The company's main responsibilities in a project usually include (i) arranging site preparation and preliminary works; (ii) appointing and supervising subcontractors; (iii) maintaining regular communication with customers; (iv) supervising the implementation of construction site projects; (v) carrying out site safety supervision and quality control; and (vi) formulating detailed work schedules and work allocation plans. In fiscal year 2020, fiscal year 2021, fiscal year 2022 and the nine months ended September 30, 2023, the company incurred subcontract costs of approximately HK$71 million, HK$48.9 million, HK$91.6 million and HK$57.2 million respectively, accounting for approximately 29.3%, 32.9%, 39.8% and 34.9% of total procurement, respectively.

Financial Overview

In terms of financial status, the company's total revenue for fiscal year 2020, fiscal year 2021, fiscal year 2022 and the nine months ended September 30, 2023 was approximately HK$324 million, $229 million, $336 million and HK$235 million, respectively. The compound growth rate from 2020 to 2022 is 1.85%, and the annual growth rate from September 30, 2022 to September 30, 2023 is -6.57%.

The company's net profit for the same period was approximately HK$36.7 million, 17.34 million, 39.27 million, 28.86 million, and HK$15.12 million, respectively. The compound growth rate from 2020 to 2022 was 3.43%, and the annual growth rate from September 30, 2022 to September 30, 2023 was -47.62%.

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