On December 24, Huitong group (603176) disclosed the online winning results of IPO. There were 104994 winning numbers, and each winning number could only subscribe 1000 shares of Huitong group. Wu Yueming, Secretary of Huitong group, told the Securities Daily that “the company may be listed on December 31”.
It is worth mentioning that if Huitong group is listed successfully this year, the company will also become the seventh IPO enterprise in Hebei this year. After Huaxun Fangzhou Co.Ltd(000687) changed its registered address from Hebei to Shenzhen, there were 68 A-share listed companies in Hebei. With Huitong group landing in the capital market, the number of A-share listed companies in Hebei was only one step away from 70.
grasp the policy dividends such as the construction of xiong’an New Area
It is reported that Huitong group is a leading diversified development builder in Hebei Province. Focusing on Hebei Province, the company deeply cultivates the business opportunities in the process of coordinated development of Beijing, Tianjin and Hebei and infrastructure construction of xiong’an new area, and constantly develops markets outside the province. The engineering construction projects cover more than 10 provinces and cities such as Beijing, Shandong and Anhui, and has the capacity and experience in highway and municipal engineering construction throughout the country.
In recent years, the implementation of national strategies such as the coordinated development of Beijing, Tianjin and Hebei and the construction of xiong’an new area has prompted Hebei Province to continuously increase infrastructure investment, especially highway construction investment. From 2018 to 2020, the growth rate of total infrastructure investment in China was 3.80%, 3.80% and 0.90% respectively. In the same period, the growth rate of total infrastructure investment in Hebei Province was 11.00%, 15.60% and 16.50% respectively. The growth rate of Hebei Province was 7.2%, 11.8% and 15.60% higher than that of the whole country.
From 2018 to 2020, the total investment in fixed assets of highway construction in China increased by 0.40%, 2.60% and 11.00% respectively. In the same period, the total investment in fixed assets of highway construction in Hebei Province increased by 24.15%, 15.99% and 13.42% respectively. The growth rate of Hebei Province was 23.75%, 13.39% and 2.42% higher than that of the whole country.
Dong Benjun, managing director and sponsor representative of Shengang securities investment banking department, said that Huitong group’s competitive advantages in brand, management, talent, technology and supplier channels accumulated in Beijing, Tianjin and Hebei over the years will help the company further consolidate and expand the Beijing, Tianjin and Hebei market and enjoy the policy dividends brought by the national strategies such as the coordinated development of Beijing, Tianjin and Hebei and the construction of xiong’an new area, It has obvious location advantages.
According to Dong Benjun, at present, Huitong group has participated in the construction of more than 1700 kilometers of highways at all levels, including more than 340 kilometers of expressways. Qiancao expressway, invested and constructed by the consortium participant, is one of the “five vertical, six horizontal and seven lines” in the “12th Five Year Plan” expressway network planning of Hebei Province, and is a key project of transportation integration of Beijing, Tianjin and Hebei; Langfang section of the New Airport North Line Expressway invested and constructed by the consortium participants is an important part of the “five vertical and two horizontal” ground comprehensive transportation system of Beijing Daxing airport.
it is expected to achieve an operating revenue of 2.25 billion yuan to 2.5 billion yuan in 2021
Huitong group’s main business is highway, municipal, housing construction and related building material sales, survey and design, test and testing, etc. According to the prospectus disclosed by the company, the offering price of Huitong group is 1.7 yuan / share, with a corresponding P / E ratio of 8.24 times. The company’s initial public offering of 116.66 million A-Shares is expected to raise 198.322 million yuan; Among them, 34.998 million shares were initially issued online, accounting for 30% of the total issuance. The investment projects of the raised funds include: the project of purchasing engineering construction equipment; Supplementary project of working capital for engineering construction business.
From the performance of the company in recent years, from 2018 to 2020, Huitong group achieved operating revenue of RMB 1.62 billion, RMB 2.407 billion and RMB 2.398 billion respectively. In 2018, 2019 and 2020, the net profits attributable to the owners of the parent company were 26.0398 million yuan, 90.7378 million yuan and 96.3319 million yuan respectively. Huitong group said that after preliminary calculation, the company expects to achieve an operating revenue of 2.25 billion yuan to 2.5 billion yuan in 2021, and a net profit of 88 million yuan to 115 million yuan attributable to the shareholders of the parent company after deducting non recurring profits and losses.
For the upcoming landing in the capital market, Huitong group also made clear its future business development plan. Zhang Zhongqiang, chairman of Huitong group, said that there are three main aspects: first, consolidate and enhance the company’s competitive position and leading advantage in Beijing, Tianjin and Hebei; Second, strengthen the expansion of the national market; Third, build a complete business system and promote the coordinated development of various businesses.
At the same time, Zhang Zhongqiang said that the company will continue to improve its core competitiveness. It mainly includes strengthening internal management and improving project quality control and cost control; Increase R & D investment related to the construction of highway, municipal and other infrastructure projects, and improve the technical level of the company; We will improve the talent training and incentive system and establish a core talent team.
“One belt, one road” and the key areas of Beijing, Tianjin and other key areas, including the Xiong New District, will be guided by the development of the current industry. We will accelerate the development of the business structure and extend the direction of business development by creating a modern enterprise system and taking technological innovation as a means. With the integrated industrial pattern of R & D, design, procurement, construction and operation and maintenance, Huitong adheres to building word-of-mouth projects, high-quality projects and landmark projects, and makes every effort to build Huitong into a nationally famous comprehensive service operator for urban and rural construction. ” Zhang Zhongqiang further said.
(Securities Daily)
