Jun 21, 2022 (China Knowledge) - Anhui Tuoshan Heavy Industries (001226) to start trading on the Shenzhen Stock Exchange's Main Board Jun 22, tomorrow. The firm has issued 18.67 mln shares priced at RMB 24.66 per share raising RMB 460.32 mln. Its price-to-earnings ratio (PE) stands at 22.99. During subscription the IPO was 7,448 times oversubscribed. Minsheng Securities acts as the lead underwriter and sponsor for the IPO. Anhui Tuoshan Heavy Industries Co. Ltd. produces and sells construction machinery parts. The Company manufactures and sells forging track, forging bucket tooth, forging gear block, forging track roller, and other products. Anhui Tuoshan Heavy Industries markets its products primarily throughout China with limited overseas. In FY 2021, Anhui Tuoshan Heavy Industries garnered a total revenue of RMB 887 mln, up 18% YoY. In terms of net income, it achieved RMB 86 mln, falling 2% YoY. In Q1 2022, the company reported revenue of RMB 217 mln, a YoY decrease of 13%, and its net profits reached RMB 26 mln, down 1% YoY. The company is in the machinery equipment industry that is currently made of 486 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 3,538 bln, industry’s average PE of 24 times. The machinery equipment industry’s index is up 10.61% year-to-date, ranking it the 14th place among all 29 broad industry groupings. CRRC Corporation Limited (601766) takes up the top spot in terms of sales in the industry, reporting RMB 227.66 bln of sales in 2020, with a net profit of RMB 11.33 bln, at 16 times PE. The second largest is Sany Heavy Industry Co.,Ltd. (600031), a total revenue of RMB 100.05 bln and a net profit of RMB 15.43 bln, at 20 times PE. China International Marine Containers (Group) Co., Ltd (000039) ranked third. It garnered a total revenue of RMB 94.16 bln last year, and a net profit of RMB 5.35 bln, with 7 times PE. The average industry’s PE for the same or similar stocks on Hong Kong Exchange (HKEx) and the U.S. stock markets for machinery equipment is 20 times and 27 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 40.81% and the U.S is down 0.23%. There will be another 3 IPO debut tomorrow, Kunshan Asia Aroma Corp., Ltd. (301220), Shanghai National Center of Testing and Inspection for Electric Cable and Wire Co., Ltd. (301289) and Sany Heavy Energy Co., Ltd. (688349). Since January, a total of 154 companies have listed on either Shanghai or Shenzhen Stock Exchange, most are mainly in the machinery equipment, electronics and pharmaceutical and biological industries.
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