Futu news on October 9th, $WING LEE DEV (09639.HK)$ The first day opened at a low of 31.51%, closing at 0.5 Hong Kong dollars, with a turnover of 38.7323 million Hong Kong dollars, and a total market value of 0.5 billion Hong Kong dollars.

Market source: Futu Securities.

According to previous reports, in the grey market trading of Futu on the previous trading day, Rongli Construction opened at a low in the grey market, fell by 24.66%, closing at 0.55 Hong Kong dollars, with a turnover of 12.1362 million Hong Kong dollars, and a total market value of 0.55 billion Hong Kong dollars; 5,000 shares per lot, without considering fees, losing 900 Hong Kong dollars per lot.

In addition, during the public offering stage, Rongli Construction received 120.6 times oversubscription, and after reallocation, the final number of shares offered in the public offering stage was 0.125 billion shares, accounting for approximately 50% of the total shares offered. A total of 14,898 valid applications were received, with 7,913 applications accepted, and the percentage of H shares allocated per lot in relation to the total number of applications was approximately 25%.

Furthermore, during the allocation stage, Rongli Construction received 1.14 times oversubscription, and the final number of shares for international allocation was 0.125 billion shares, equivalent to 50% of the total shares offered (before the exercise of any additional allotment option). Futu news compiled related data as shown in the table below:

Company overview

Rongli Construction is a large-scale Hong Kong contractor engaged in civil and cable engineering as well as cecep solar energy photovoltaic system engineering. The company's civil engineering focuses on site leveling and road and drainage engineering, while the company's cable engineering focuses on cable trenching, laying, and connection engineering. As for cecep solar energy photovoltaic system engineering, the company focuses on the design, installation, and maintenance of cecep solar energy photovoltaic systems. Additionally, during the historical period, in some projects the company was involved in, it would temporarily lease machinery and buy building materials from contractors and subcontractors.

The company's land leveling engineering typically includes earthworks, excavation engineering, and steel structure installation. The company's road and canal engineering mainly involves the construction and renovation of roads, lanes, and sidewalks, the construction of covered pedestrian walkways, the renovation of tunnels and pedestrian overpasses, the provision of smooth traffic facilities for pedestrian overpasses, elevated pedestrian paths, and tunnels, the construction of drainage systems, sand wells, cable trenches, and the installation of water mains and sewage pipes.

The company's cable engineering typically includes cable trenching, laying, and connection, involving excavation, repair, miscellaneous construction (such as concrete pouring) works, traffic impact assessments, as well as emergency and cable fault repairs. According to industry reports, the company is the largest cable and civil pipeline installation subcontractor in Hong Kong in 2023, with a market share of approximately 13.6% based on the company's 2023/24 fiscal year earnings.

Financial overview

In terms of performance, in the past fiscal year 2021/22, 2022/23, 2023/24, the company's operating income was 0.52 billion Hong Kong dollars, 0.361 billion Hong Kong dollars, 0.526 billion Hong Kong dollars, with a compound growth rate of 0.55%; during the same period, the company's gross profit was 0.094 billion Hong Kong dollars, 0.076 billion Hong Kong dollars, 0.122 billion Hong Kong dollars, with a compound growth rate of 13.98%.

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Editor/Joe