Tomorrow (November 8), the A-share market will welcome the IPO subscription of 3 new stocks, namely star's Jintian Titanium Industry (688750.SH), gem's Yilian Technology (301631.SZ), and BSE's Wanyuan Tong (920060.BJ). Given the good profitability of new stocks this year, it is recommended to actively participate in the subscription.

According to the statistics of Gelonhui, as of November 7, a total of 82 new enterprises have been listed on the A-share market this year, with only one company, Shanghai Hengjing, experiencing a price drop on its first day of listing, Haisheng Pharmaceuticals closed flat on the first day, and the remaining 80 companies closed higher on the first day of listing.

The average first-day increase of the 82 new A-share listed companies is 225%. Among them, Qiangbang New Materials had the highest increase, with a first-day increase of 1738.95%; while the tenth on the list of top gainers was Qiangda Circuit, with an increase of 387.93%.

01

Jintian Titanium Industry: Focuses on the titanium material field of the aviation and aerospace industry.

Hunan Xiangtou Jintian Titanium Industry Technology Co., Ltd. (referred to as "Jintian Titanium Industry") started its IPO subscription on November 7, 2024. Zhongtai Securities Co., Ltd., and Zhonghang Securities Co., Ltd. are the joint sponsors with the stock code 688750.SH.

Jintian Titanium Industry's issuance price this time is 7.16 yuan per share, making it the 15th new stock on the A-share market this year to have an issuance price below 10 yuan per share.

The company's IPO price-to-earnings ratio is 24.72 times, belonging to the nonferrous metals smelting and processing industry (C32). As of November 5, 2024 (T-3 days), China Securities Index Co., Ltd. released that the industry's latest average static P/E ratio for the past month was 17.54 times.

The arithmetic mean static P/E ratio of comparable listed companies selected in the prospectus for 2023 diluted net profit per share, before and after deducting non-recurring gains and losses, is 36.9 times (as of November 5, 2024).

Golden Tiangu Titanium's IPO price-to-earnings ratio is higher than the industry's recent average static P/E ratio released by China Securities Index Co., but lower than the static P/E ratio of comparable companies in the same industry for 2023.

This issuance consists of 92.5 million shares, accounting for 20% of the total share capital after the issuance. All are newly issued shares publicly. The total share capital after this public offering is 0.4625 billion shares. Each subscription unit is 500 shares, and the subscription quantity should be 500 shares or multiples thereof, but not to exceed one-thousandth of the initial online issuance shares, i.e., 0.0165 million shares.

Before November 8, 2024 (T day), investors who have opened a securities account at the Shanghai Branch of China Clearing and hold non-restricted A-shares and non-restricted depository receipts with a daily average market value of at least 0.01 million yuan for the last 20 trading days (including T-2 day) before November 6, 2024 (T-2 day) are eligible to participate in the online subscription.

The company is a high-tech enterprise mainly engaged in the research, production, and sale of high-end titanium and titanium alloy materials. Its main products are titanium and titanium alloy bars, forgings, and components, mainly used in aviation, aerospace, shipbuilding, and weapon industries.

Golden Tiangu Titanium's downstream users are mainly forging production companies, ultimately used by major aircraft and aerospace engine manufacturers. During the reporting period, the company's significant customers include subsidiaries of the aviation industry, Xi'an Triangle Defense (300775.SZ), Wuxi Paike New Materials (605123.SH), AviChina Industry & Technology (688239.SH), China Second Heavy Machinery Group Deyang Wanhang Mold Forging Co., Ltd., subsidiaries of China Aviation Power, and subsidiaries of China CSSC.

These customers are all important participants in the defense military industry chain, with strict technical requirements for products. Due to the high conversion cost, especially in the aviation and aerospace sector, customers usually do not easily switch suppliers after certifying and selecting them. Stable customer relationships provide important support for the company's sustainable development.

From 2021 to the first half of 2024 (reporting period), benefiting from the continuous development of the domestic high-end titanium alloy materials market and the accelerated process of updating military equipment, the company achieved operating income of 0.573 billion yuan, 0.7 billion yuan, 0.8 billion yuan, and 4.09 billion yuan. The net profit attributable to the company's shareholders after deducting non-recurring items amounted to 87.973 million yuan, 0.109 billion yuan, 0.134 billion yuan, and 71.6625 million yuan respectively.

Jintiantaiye is expected to achieve operating income of 0.61 billion yuan to 0.64 billion yuan from January to September 2024, with a year-on-year growth of approximately 8.18% to 13.50%; the net profit attributable to the parent company is expected to be 0.11 billion yuan to 0.125 billion yuan, with a year-on-year growth of approximately 16.03% to 31.86%.

Key financial indicators of Jintiantaiye, source: prospectus

Currently, in the military aviation market, besides Jintiantaiye, the main companies capable of mass producing related titanium alloy products are Baoti Group and Western Superconducting. In 2023, Jintiantaiye's titanium alloy products had a market share of approximately 7.90% in the domestic titanium materials market in the aerospace sector, while Western Superconducting held a market share of about 23.75% in the aforementioned market in 2020.

The company's main customers are subsidiaries of the military industry group and their supporting forging manufacturers. Due to the overall arrangement of industrial chain projects, payment progress from end customers, etc., the company has a relatively large accounts receivable amount and longer accounts receivable collection period. As of June 30, 2024, the total accounts receivable of the company accounted for 38.20% of the total assets at the end of each period.

02

Yilian Technology: focuses on the field of electrical connection components.

Shenzhen Yilian Technology Co., Ltd. (referred to as 'Yilian Technology') will start online subscription on November 8, with the stock code 301631.SZ, sponsored by China Merchants Securities Co., Ltd.

The issuance price of Yilian Technology this time is 72.99 yuan per share, and the corresponding diluted PE ratio of the attributable net profit to the mother company's shareholders after non-recurring items for 2023 is 19.06 times, lower than the China Securities Index Company's latest industry average PE ratio of 39.33 times as of November 5, 2024 (T-3 days). It is also lower than the arithmetic average static PE ratio of comparable listed companies' attributable net profit to the mother company's shareholders after deducting non-recurring gains and losses for 2023 of 44.77 times.

Source: Yilian Technology's IPO prospectus.

The number of shares issued publicly this time is 16.33 million shares, accounting for 25.01% of the total share capital after the issuance, all of which are newly issued publicly.

Investors determine their online subscription quota based on the market value of their non-restricted A shares of Shenzhen market and non-restricted depositary receipts (hereinafter referred to as 'market value'). According to the investor's average daily market value held in the 20 trading days before November 6, 2024 (T-2 day), including T-2 day, investors with securities account opening for less than 20 trading days are calculated based on 20 trading days' average daily market value.

Investors with a market value of 0.01 million yuan or more are eligible to participate in the IPO subscription. For every 5,000 yuan in market value, one subscription unit can be purchased, with the remaining amount less than 5,000 yuan not included in the subscription quota. Each subscription unit consists of 500 shares, and the subscription quantity should be 500 shares or multiples thereof, but the maximum subscription quantity should not exceed one-thousandth of the total online issuance shares, i.e., not more than 3,500 shares, and should not exceed the upper limit of the subscription quota calculated based on the market value.

Yilian Technology is a product and solution provider that integrates the research and development, design, production, sales, and services of electrical connection components. The company has deepened its presence in the field of electrical connection components and has already established production bases in multiple locations including Shenzhen, Guangdong, Ningde, Fujian, Liyang, Jiangsu, Yibin, Sichuan, Yueqing, Zhejiang, and Zhaoqing, Guangdong.

The company's main products include cell connection components, power transmission components, and low-voltage signal transmission components, covering various types of electrical connection components. It has created an industrial development pattern where new energy vehicles serve as a central axis, with simultaneous development in energy storage systems, industrial equipment, medical devices, consumer electronics, and many other application fields.

Yilian Technology's main business revenue structure, source: prospectus

From January 2021 to June 2024, the company's operating income were 1.434 billion yuan, 2.758 billion yuan, 3.075 billion yuan, and 16.92 billion yuan respectively. The net profit attributable to common shareholders of the company after deducting non-recurring items was 0.139 billion yuan, 0.22 billion yuan, 0.25 billion yuan, and 0.108 billion yuan.

Main financial data of the company, image source: Yilian Technology prospectus

The company expects that the operating income for the year 2024 will be between 3.663 billion yuan and 4.033 billion yuan, with a year-on-year change ranging from 19.14% to 31.17%. The net profit attributable to the parent company's shareholders for the year 2024 is expected to be between 0.262 billion yuan and 0.289 billion yuan, with a year-on-year change ranging from 0.89% to 11.09%. The growth in customer order demands is expected to steadily increase the company's sales scale and profitability in 2024. It is expected that the net profit growth rate will be relatively slow in the face of intensified market competition and rising labor costs.

During the reporting period, the company's comprehensive gross margin rates were 21.69%, 19.54%, 18.94%, and 16.17% respectively. In the future, with the cyclical fluctuations of the industry and product upgrades, the company faces pressure to negotiate price reductions for its products.

Yilian Technology is relatively dependent on its major client Contemporary Amperex Technology. In the first half of 2024, revenue from Contemporary Amperex Technology accounted for 70.87%.

03

Manyuan Tong: Focuses on the printed circuit board industry.

Manyuan Tong (920060.BJ) launched its IPO on November 8th, with a subscription price of 11.16 yuan per share and a maximum subscription of 1.4725 million shares, totaling 16.4331 million yuan. The subscription funds need to be fully deposited in the account in advance.

The total number of shares issued this time is 35.65 million shares, with 29.45 million shares for online issuance. The lead underwriter is Industrial Securities Co., Ltd., and the subscription payment date is November 8, 2024.

Manyuan Tong's business belongs to the manufacturing industry in the "C39 Computer, Communication, and Other Electronic Equipment Manufacturing" category. As of November 5, 2024, China Securities Index Co., Ltd. reported that the industry's average static P/E ratio in the last month was 39.33 times.

In this offering without exercising the over-allotment option, Manyuan Tong's diluted P/E ratio for 2023 attributable to shareholders after deducting non-recurring gains and losses is 14.93 times; assuming full exercise of the over-allotment option, the diluted P/E ratio for 2023 attributable to shareholders after deducting non-recurring gains and losses is 15.40 times, both lower than the industry's recent month's average static P/E ratio.

The company is a high-tech enterprise specializing in the research and development, production, and sales of printed circuit boards (PCBs). The products cover single-sided boards, double-sided boards, multi-layer boards, and metal base boards (copper-based boards and aluminum-based boards, etc.), widely used in consumer electronics, automotive electronics, industrial control, household appliances, communication equipment, 5G, new energy, and medical devices.

During the reporting period, the company's revenues were 1.012 billion yuan, 0.969 billion yuan, 0.984 billion yuan, and 4.64 billion yuan, with net profits attributable to shareholders being 19.35 million yuan, 52.53 million yuan, 0.118 billion yuan, and 60.22 million yuan respectively.

Main financial data of Wanyuantong, source: prospectus