Statistical data summary:
Number of shares offered globally: 58,626,000 shares
Percentage of publicly offered shares: 10%
Offer Price: HK$2.18 to HK$2.78
Estimated amount raised: $1.28 billion to HK$163 million
Admission fee per hand: HK$2,808.02
Group Overview
The Group is a leading operator of natural gas filling stations for vehicles in Jilin Province, China. According to the F&S report, according to the 2016 compressed natural gas sales volume, the group ranked second in the compressed natural gas filling station market in Jilin Province, with a market share of 6.2%. The group mainly operates natural gas filling stations in Jilin Province and sells natural gas in the form of compressed natural gas to vehicle terminal users.
The Group supplies three types of automobile gas products, namely compressed natural gas, liquefied petroleum gas and liquefied natural gas. As the government promotes compressed natural gas as a clean energy source, the Group is committed to developing the compressed natural gas filling station business. For the three months ending end March 2017, retail sales of compressed natural gas accounted for approximately 92.6% of the group's revenue.
Industry Overview
According to the F&S report, natural gas sales at compressed natural gas filling stations in Jilin Province increased from about 238 million cubic meters in 2011 to about 1,094 million cubic meters in 2016, with a compound annual growth rate of about 35.7%. The number of compressed natural gas filling stations also increased from 60 in 2011 to 264 in 2016, with a compound annual growth rate of about 34.5%. According to F&S's forecasts, compressed natural gas sales at Jilin Auto gas stations are expected to increase to about 1,711 billion cubic meters in 2021, with a compound annual growth rate of about 9.4% from 2016 to 2021.
Risks
valuations
In China, gasoline and electricity as fuel for automobiles are the main alternatives to natural gas. Technologically advanced and other forms of energy sources supported by the government may become more frowned upon. Electric vehicle technology has continued to improve in recent years, driving the increasing popularity of electric vehicles. If the Chinese government favors the development of more electric cars than natural gas cars, the increase in demand for natural gas cars and the Group's natural gas filling station services will inevitably slow down or even regress. This situation will have a significant impact on the Group's operating performance.
adverse effects.
Based on the prospectus, it is assumed that the global offering was completed on March 31, 2017, and that 234,502,000 shares will be issued as expected after the close share sale is completed, equivalent to an adjusted net worth range of HK$0.85 to HK$1.00 per share of HK$0.85 to HK$1.00 (converted to HK$1 to HK$0.8384).