On May 28, Li An Technology (300784.SZ) began the subscription. The issue price was 28.30 yuan/share. The subscription limit was 14,000 shares, and the price-earnings ratio was 22.40 times. It belongs to the Shenzhen Stock Exchange, and Haitong Securities is the sponsor and lead underwriter.
The Zhitong Finance App learned that on May 28, Li An Technology (300784.SZ) began the subscription. The issuance price was 28.30 yuan/share. The maximum subscription price was 14,000 shares, with a price-earnings ratio of 22.40 times. It belongs to the Shenzhen Stock Exchange, and Haitong Securities is the sponsor and lead underwriter.
According to the prospectus, Lian Technology is mainly engaged in R&D, production and sales of injection molding products and precision injection molds. It is a professional precision manufacturing enterprise integrating product industrial design, precision mold design, manufacturing, injection molding, spraying and assembly. Adhering to the business philosophy of “technology creates value, technology leads the market”, the company has developed into a large-scale “integrated molding” manufacturer based on the enterprise spirit of “unity, innovation, effectiveness and refinement”, and relying on accumulated technology and experience in the design, processing, assembly, and inspection of injection molding products and precision injection molds.
The main business of Lian Technology consists of injection molding products and precision injection molds. The main products are widely used in consumer electronics, toys, daily necessities, auto parts and medical devices.
The market concentration of China's plastic products industry is low, the number of market participants is large, the enterprises are small but scattered, and the degree of specialization is not high. In 2022, there were 20,271 enterprises above the scale of the plastic products industry in China. Domestic plastic products have overcapacity, intense competition, and even vicious local competition; high-end products have insufficient production capacity and are highly dependent on the outside world.
Lian Technology has strong mold design and development capabilities, and has the ability to mass-produce products of different categories and models. It can quickly provide technical support for product requirements put forward by different customers, and its product quality and service quality have been widely recognized by high-quality customers at home and abroad. Based on its own R&D, design, technology and management advantages, the company chose misplaced competition, positioned the high-end market, and has entered the supply chain of well-known enterprises and listed company customers at home and abroad.
Liantech's customers are mainly well-known domestic and foreign companies and listed companies, such as Logitech Group, Hikvision Group, SpinMaster, Bussan Zhongda Group, Prui Junsheng, Minshi Group, Weise Biotech, etc.
On the financial side, in 2021, 2022, and 2023, Lian Technology achieved operating income of approximately 468 million yuan, 491 million yuan, and 469 million yuan respectively. Net profit for the same period was approximately 67.097 million yuan, 79.207 million yuan, and 757.022 million yuan, respectively.
It should be noted that in its prospectus, Lian Technology specifically reminds investors to pay attention to the risk of large customers accounting for a relatively high share of sales revenue.
During the reporting period, the company provided the Logitech Group and its suppliers with injection molding products and precision injection molds for consumer electronics products such as mice. Sales revenue for Logitech Group to end customers was approximately 328 million yuan, 317 million yuan, and 285 million yuan respectively, accounting for 70.10%, 64.50% and 60.60% of current revenue, respectively. Before each new category is launched, the Logitech Group will ask the supplier for a quote and finally determine the supplier based on indicators such as engineer recommendations, procurement coordination, and price. The company's supply share to Logitech Group is affected by various factors such as the price of the company's products, cooperation with Logitech Group's engineering team and procurement team, and the sales situation of Logitech Group's different positioning products. The company is at risk of a decline in the company's revenue and performance due to a decline in supply share to the Logitech Group.