Xinghui environmental protection material Co., Ltd
Initial public offering and listing on GEM
Special announcement on investment risk
Sponsor (lead underwriter): Shengang Securities Co., Ltd
hot tip
According to the industry classification guidelines for listed companies (revised in 2012) issued by the CSRC, the industry of Xinghui environmental protection materials Co., Ltd. is "chemical raw materials and chemical products manufacturing (C26)". As of December 28, 2021 (T-4), the average static P / E ratio of "chemical raw materials and chemical products manufacturing (C26)" released by China Securities Index Co., Ltd. in the latest month was 44.79 times. The issuance price of 55.57 yuan / share corresponds to the issuer's diluted P / E ratio of the net profit attributable to the shareholders of the parent company before and after deducting non recurring profits and losses in 2020, which is 49.48 times, which is higher than the static average p / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. on December 28 (T-4) 2021, with an excess range of 10.47%; Higher than the average p / E ratio of comparable A-share listed companies with similar main business and business model to the issuer in 2020, exceeding 26.55%.
The issuer and the recommendation institution (lead underwriter) remind investors to pay full attention to the risk factors contained in the marketization of pricing, know that the stock may fall below the issue price after listing, effectively improve the risk awareness, strengthen the value investment concept, avoid blind speculation, carefully study and judge the rationality of issue pricing, and make rational investment decisions.
The application of Xinghui environmental protection materials Co., Ltd. (hereinafter referred to as "Xinghui environmental materials" or "the issuer") for the initial public offering of no more than 48.4281 million common shares (A shares) (hereinafter referred to as "the offering") has been examined and approved by the members of the gem listing committee of Shenzhen Stock Exchange (hereinafter referred to as "Shenzhen Stock Exchange"), It has been approved for registration by China Securities Regulatory Commission (hereinafter referred to as "CSRC") (zjxk [2021] No. 3801).
After negotiation between the issuer and the sponsor (lead underwriter) Shengang Securities Co., Ltd. (hereinafter referred to as "Shengang securities" or "sponsor (lead underwriter)"), the number of shares issued this time is 48.4281 million, accounting for 25.00% of the total share capital after issuance. All new shares are issued to the public, and the issuer's shareholders do not transfer old shares. The shares issued this time are planned to be listed on the gem of Shenzhen Stock Exchange.
The issuer and the recommendation institution (lead underwriter) specially draw investors' attention to the following contents:
1. This issuance is finally carried out by a combination of offline inquiry and placement to qualified investors (hereinafter referred to as "offline issuance") and online pricing issuance to social public investors holding non restricted A-Shares or non restricted depositary receipts in Shenzhen market (hereinafter referred to as "online issuance").
2. The issuer and the recommendation institution (lead underwriter) directly determine the issuance price through offline preliminary inquiry, and offline cumulative bidding inquiry is no longer conducted.
3. After the preliminary inquiry, the issuer and the recommendation institution (lead underwriter) shall, in accordance with the exclusion rules stipulated in the announcement on preliminary inquiry and promotion of initial public offering of shares by Xinghui environmental protection materials Co., Ltd. and listing on the gem (hereinafter referred to as the "announcement on preliminary inquiry and promotion"), after excluding the preliminary inquiry results that do not meet the quotation requirements of investors, All 176 placing objects whose proposed subscription price is higher than 72.00 yuan / share (including 72.00 yuan / share) are excluded, and the total amount of proposed subscription excluded is 1009.4 million shares, accounting for 1.0125% of the total number of 99687.3 million shares after excluding invalid quotation in this preliminary inquiry. The excluded part shall not participate in offline and online subscription.
4. According to the preliminary inquiry results, the issuer and the recommendation institution (lead underwriter) comprehensively consider the issuer's industry, market conditions, valuation level of Listed Companies in the same industry, demand for raised funds, underwriting risk and other factors, and negotiate to determine the issuance price of 55.57 yuan / share. The offline issuance will not conduct cumulative bidding inquiry.
Investors are requested to make online and offline subscription at this price on January 4, 2022 (t day), and there is no need to pay the subscription fund. The offline issuance and Subscription Date and the online subscription date are the same as January 4, 2022 (t day), of which the offline subscription time is 9:30-15:00, and the online subscription time is 9:15-11:30 and 13:00-15:00. 5. The issue price determined through negotiation between the issuer and the recommendation institution (lead underwriter) is 55.57 yuan / share. The issue price of this issue shall not exceed the median and weighted average of offline investors' quotation after excluding the highest quotation and the securities investment fund established through public offering after excluding the highest quotation (hereinafter referred to as "public fund") National Social Security Fund (hereinafter referred to as "social security fund"), basic endowment insurance fund (hereinafter referred to as "pension") The enterprise annuity fund (hereinafter referred to as "enterprise annuity fund") established in accordance with the measures for the administration of enterprise annuity fund and the insurance fund (hereinafter referred to as "insurance fund") in accordance with the measures for the administration of the use of insurance funds, whichever is lower, so the relevant subsidiaries of the sponsor need not participate in the follow-up investment.
This offering does not arrange strategic placement to other investors. According to the issue price, the relevant subsidiaries of the sponsor will not participate in the strategic placement. Finally, this offering will not be placed to strategic investors. The difference between the initial strategic placement and the final strategic placement of 2421405 shares will be transferred back to offline issuance.
This offline issuance is conducted through the offline issuance electronic platform of Shenzhen Stock Exchange; The online issuance is carried out through the trading system of Shenzhen Stock Exchange by means of subscription pricing according to market value.
6. The issue price is 55.57 yuan / share, and the corresponding P / E ratio is:
(1) 36.51 times (earnings per share shall be calculated by dividing the net profit attributable to shareholders of the parent company before deducting non recurring profits and losses audited by the accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital before this issuance); (2) 37.11 times (earnings per share is calculated by dividing the net profit attributable to the shareholders of the parent company after deducting non recurring profits and losses audited by the accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital before the issuance); (3) 49.48 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company after deducting non recurring profits and losses audited by an accounting firm in 2020 in accordance with Chinese accounting standards by the total share capital after this issuance); (4) 48.68 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company before deducting non recurring profits and losses audited by an accounting firm in 2020 in accordance with Chinese accounting standards by the total share capital after the issuance). 7. The issue price is 55.57 yuan / share. Investors are requested to judge the rationality of the issue price according to the following conditions.
(1) According to the industry classification guidelines for listed companies (revised in 2012) issued by the CSRC, the industry of Xinghui environmental protection materials Co., Ltd. is "chemical raw materials and chemical products manufacturing (C26)". As of December 28, 2021 (T-4), the average static P / E ratio of "chemical raw materials and chemical products manufacturing (C26)" released by China Securities Index Co., Ltd. in the latest month was 44.79 times. The issuance price of 55.57 yuan / share corresponds to the issuer's diluted P / E ratio of the net profit attributable to the shareholders of the parent company before and after deducting non recurring profits and losses in 2020, which is 49.48 times, which is higher than the static average p / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. on December 28 (T-4) 2021, with an excess range of 10.47%; Higher than the average p / E ratio of comparable A-share listed companies with similar main business and business model to the issuer in 2020, exceeding 26.55%. There are three reasons as follows: first, the company is an enterprise that entered the polystyrene industry earlier in China. Since its establishment, it has been deeply engaged in the R & D, production and sales of polystyrene for many years, and has formed a strong core competitiveness under the market competition: it has established a stable R & D and management team and accumulated rich process technology and production experience, Master the core technology of polystyrene production with independent intellectual property rights; The company has good product performance indicators, stable quality and timely supply, and has established a high brand awareness and good market reputation in the industry; Relying on its superior geographical location, the company responds quickly to market demand, deeply integrates into the development of downstream electronic and electrical appliances, toys, daily plastic products and other industrial chains, and has formed long-term and stable cooperative relations with a large number of customers. Second, the polystyrene industry where the company is located has turned to domestic or imported under the background of stricter national environmental protection policies and upgraded consumption
The downstream demand for medium and high-end polystyrene products increased significantly, while the production capacity and output growth at the supply side were slow due to
Therefore, there is still a large gap between supply and demand in China's polystyrene industry. At present, the industry is in a state of short supply
In a large market space, the industry has a good development prospect. Third, the company's menstruation period from January to June 2021 and from January to September 2021
The operating performance showed a continuous growth trend, and the net profit and net profit after deduction increased significantly compared with the same period in 2020
Based on the operating performance in 2020, this pricing fully considers the growth of the company's future operating performance. As of December 28, 2021 (T-4), P / E of listed companies whose main business is similar to that of the issuer
The rate level is as follows:
2020 deduction not 2020 deduction not T-4 day stock corresponding static city stock code securities referred to as EPS closing price earnings ratio before and after EPS - earnings ratio before and after deduction (yuan / share) (yuan / share) (yuan / share) (2020) (2020)
002386.SZ Yibin Tianyuan Group Co.Ltd(002386) 0.14840.089412.3783.36138.37
605008.SH Ningbo Changhong Polymer Scientific & Technical Inc(605008) 0.46950.419914.6731.2534.94
688219.SH Orinko Advanced Plastics Co.Ltd(688219) 0.39670.349412.0230.3034.40
300848.SZ Miracll Chemicals Co.Ltd(300848) 0.76520.674132.3342.2547.96
Average 34.6039.10
Data source: wind information, data as of December 28, 2021.
Note 1: if there is mantissa difference in the calculation of P / E ratio, it is caused by rounding;
Note 2: EPS before / after deduction of non recurring profit and loss in 2020 = net profit attributable to the parent before / after deduction of non recurring profit and loss in 2020 / total share capital on T-4 day;
Note 3: among the comparable companies disclosed in the prospectus, Renxin Xincai has not been listed, so it is not included in the valuation comparison of comparable companies;
Note 4: the extreme value ( Yibin Tianyuan Group Co.Ltd(002386) ) is excluded when calculating the average value of P / E ratio.
The issue price is 55.57 yuan / share, corresponding to the issuer's net profit before and after deducting non recurring profits and losses in 2020, whichever is lower
The diluted P / E ratio was 49.48 times, higher than the industry average in the latest month released by China Securities Index Co., Ltd
The static P / E ratio and the average static P / E ratio of comparable companies after deducting non profits in 2020, there is a decline in the issuer's share price in the future
The risk of loss to investors. The issuer and the recommendation institution (lead underwriter) draw investors' attention to the investment
Risk, carefully study and judge the rationality of issue pricing, and make investment decisions rationally.
(2) After the issue price is determined, the number of investors who have submitted effective quotations for the offline issue is
347, with 7227 managed placing objects, accounting for% of the total number of all placing objects after excluding invalid quotations
80.14%； The total number of valid proposed subscriptions is 62451900000 shares, accounting for% of the total number of subscriptions after excluding invalid quotations
68.61%, 1803.61 times of the initial offline issuance scale after the strategic placement callback and before the online offline callback.
(3) Investors are reminded to pay attention to the difference between the issue price and the quotation of offline investors, and offline investment
For details of investors' quotations, please refer to China Securities Journal, Shanghai Securities News, securities times and Securities Journal published on the same day
Securities Daily and cninfo (www.cn. Info. Com.. CN.) Xinghui environmental protection materials Co., Ltd
Announcement on the public offering of shares and listing on the gem (hereinafter referred to as the "issuance announcement").
(4) The fund-raising demand amount disclosed in the letter of intent for initial public offering and listing on the gem of Xinghui environmental protection materials Co., Ltd. (hereinafter referred to as the "letter of intent") is 563.573 million yuan, the issuance price is 55.57 yuan / share, and the corresponding financing scale is 2691.1495 million yuan, which is higher than the above-mentioned fund-raising demand amount.
(5) This offering follows the principle of market-oriented pricing. In the preliminary inquiry stage, offline institutional investors quote based on the real subscription intention. The issuer and the sponsor (lead underwriter) comprehensively consider the effective subscription multiple, the industry of the issuer, the fundamentals of the issuer, the valuation level of comparable listed companies, market conditions The issue price shall be determined through negotiation based on the demand for raised funds, underwriting risk and other factors. The offering price shall not exceed the lower of the median and weighted average of offline investors' quotations after excluding the highest quotation and the median and weighted average of public funds, social security funds, pensions, enterprise annuity funds and insurance funds after excluding the highest quotation. If any investor participates in the subscription, it shall be deemed that it has accepted the issue price. If there is any objection to the issue pricing method and issue price, it is recommended not to participate in this issue.
(6) Investors should pay full attention to the risk factors contained in the pricing marketization, know that the stock may fall below the issue price after listing, effectively improve the risk awareness, strengthen the value investment concept and avoid blind investment
