The parity is high and the terms are regular.
Zhongchen shares issued an announcement on May 27 that convertible bonds will be publicly issued on May 31, 2022, and no offline issuance will be arranged this time. The issuance size of Zhongchen convertible bonds is 571 million yuan, and the debt rating AA-, is based on the maturity yield of 6.3557% of Chinese bonds of the same grade on May 27th. The debt bottom is about 83.45 yuan, and the parity of Zhongchen convertible bonds on May 27 is 102.83 yuan. In terms of terms, the three major provisions are in order.
The main competitor of the wire and cable industry, the policy promotes the production and marketing of Liangwang cable industry to cover all products, and floating pricing maintains profit growth. Zhongchen convertible bond stock is Zhongchen stock, which is one of the main competitors in the wire and cable industry. The company has won a large number of bids in previous tenders of State Grid Corporation and Southern Power Grid Company, and its products have been put into use in major power grid projects in 31 provinces, autonomous regions and municipalities directly under the Central Government. It has become one of the enterprises with the most complete product range in the domestic cable industry. In the first quarter of 2022, the company's operating income was 503 million yuan, an increase of 8.41% over the same period last year; the net profit of shareholders belonging to listed companies was 20.5092 million yuan, an increase of 27.16% over the same period last year.
Policy planning ensures demand, and special cables have become a new growth point. The further transformation and upgrading of the power grid by the company's main customers, State Grid and Southern Grid, promote the demand for wires and cables. In 2021, the state further defined the development plan of new energy and carbon neutrality, promoted the rapid growth of the demand for special cables, and become a new growth point of the wire and cable industry. In 2021, the state further defined the development plan of new energy and carbon neutrality, promoted the rapid growth of the demand for special cables, and become a new growth point of the wire and cable industry. With the continuous promotion of clean energy construction, there is a huge market demand for special cables in related fields, which significantly improves the demand space of the wire and cable industry. By the end of 2021, the company's main projects under construction include "Intelligent High Voltage bare Wire Manufacturing Workshop", "Environmental Protection Special Cable Construction Project for Rail Transit", "New Energy Special Cable Construction Project", "Intelligent EHV Cable Accessories Construction Project" and so on.
The total amount of funds raised in this issue shall not exceed RMB 570.537 million (including capital). After deducting the issuance expenses, the net funds raised will be invested in the construction projects of high flexible cables for industrial automation and signal cables for rail transit and replenish the working capital.
The success rate is expected to be about 0.00162%. It is expected that the risk of applying for purchase in the primary market is not high. Du Nanping and Zhang Qian have a father-daughter relationship. Together, they control 67.54% of Zhongchen Holdings, which is the actual controller of the company. With reference to the recently issued Hangzhou oxygen convertible bonds (original shareholder placement ratio 82.46%, online effective purchase amount 10.98 trillion) and superstar convertible bonds (original shareholder placing proportion 76.72%, online effective purchase amount 10.69 trillion), assuming that the placement ratio of the original shareholders of Zhongchen convertible bonds and the online effective purchase amount are 10.5 trillion respectively, the online success rate is expected to be about 0.00162%.
With reference to Tuor convertible bonds with the same rating and similar parity (22.49%) and Qifan convertible bonds in the same industry (closing price 120.11, conversion premium ratio 28.73%), the first day of listing of Zhongchen convertible bonds is expected to fall in the range of 20%. For May 27 parity, the listing price of Zhongchen convertible bonds is expected to be between 123.39 yuan and 128.53 yuan. Zhongchen convertible bond issue parity is relatively high, the three major terms are in order. Zhongchen convertible bond stock is one of the main competitors in the wire and cable industry, the main business operation is stable, the production capacity of special cables under construction is about to be released, and many of the company's research projects open room for growth. It is expected that the risk of applying for purchase in the primary market is not high, and active attention can be paid to it after listing.
Risk Tips:
Project capacity release is not as expected, raw material price fluctuations and so on.