Why did the funds chase after Guanglian Technology Holdings and increase by about 50% in the first week of listing? What are the highlights of the small garden chain restaurant brand filing again?
On July 21st, Caishen.co brings you weekly Hong Kong stock news.
As of the time of publication, two companies have submitted filings this week (July 15th to July 21st), no companies have passed reviews and IPOs, and one new stock has listed.
First, let's take a look at the two companies that have submitted filings this week:
1) On July 16th, Little Garden International Holding Company Limited submitted an IPO application to the Hong Kong Stock Exchange's main board. Huatai International and UBS Group are its joint sponsors. The company had previously submitted an IPO application to the Hong Kong Stock Exchange on January 16th.
The prospectus disclosed that Little Garden is one of the well-known Chinese popular convenient Chinese-style catering market direct chain restaurants, which Sullivan Foster's data shows that Little Garden has a market share of 0.2% in the catering market with a single customer price between RMB 50 and RMB 100.
In terms of finance, the company’s revenue in 2021, 2022, and 2023 were RMB 2.646 billion, RMB 3.213 billion, and RMB 4.549 billion, respectively. During the same period, the company’s annual profits were RMB 0.227 billion, RMB 0.238 billion, and RMB 0.532 billion, respectively.
2) On July 18th, Ying Tong Holdings Limited submitted an IPO application to the Hong Kong Stock Exchange's main board. BNP Paribas and Citic Securities are its joint sponsors.
The prospectus disclosed that based on the 2023 retail sales, Ying Tong Holdings is the largest perfume brand management company in the integrated markets of mainland China, Hong Kong and Macau. The company has a large and diversified brand portfolio, which includes not only perfume but also cosmetics, skincare products, personal care products, glasses and household fragrances.
In terms of finance, as of March 31, 2022, March 31, 2023, and March 31, 2024, the company's revenue was RMB 1.675 billion, RMB 1.699 billion, and RMB 1.864 billion, respectively. During the same period, the company's net income was RMB 0.171 billion, RMB 0.173 billion, and RMB 0.206 billion, respectively.
In addition, the new stock Guanglian Technology Holdings (02531.HK) rose 2.13% on the first day of listing on July 15th, but then saw a trend of upward movement for several days.
As of July 19th, the stock has risen more than 50% in the first week of listing. Data shows that Guanglian Technology Holdings is a provider of automotive aftermarket hardware and SaaS marketing and management services. By 2023 revenue calculation, the company ranks first in the industry's SaaS marketing and management service providers with a market share of 6.1%.
According to the announcement, the company's global offering of 63.6 million shares, the number of shares publicly offered in Hong Kong accounted for 10.00% of the total shares offered globally, and was oversubscribed 2.49 times; the number of shares offered internationally accounted for 90.00% of the total shares offered globally, and was oversubscribed 1.06 times.
It is worth noting that Guanglian Technology's revenue continued to grow from 2021 to 2023, reaching RMB 0.327 billion, RMB 0.414 billion, and RMB 0.561 billion, respectively, with a compound annual growth rate exceeding 30%. Due to the continuous growth of revenue and the continuous improvement of gross profit margin, the company's adjusted profits during the same period were RMB 36.631 million, RMB 56.618 million, and RMB 61.737 million, respectively, with a compound annual growth rate of 29.8%.