Yesterday's three Hong Kong new stocks rose sharply on the first day, which is an important signal, superimposed on the violent rebound of Chinese stocks last night, the largest increase since 2008. This shows that the sentiment of the Hong Kong stock market is picking up, and at the same time, new confidence is recovering.
At the same time, we previously found that one of the types of Hong Kong stock IPOs that performed better this year is the leader of the subdivision industry, and the Jinli permanent magnet of today's offering is the global leader of high-performance rare earth permanent magnet materials.
Jinli Permanent Magnet (06680) today - January 7, 2022 prospectus, intends to offer about 125.5 million shares globally, of which 10% in Hong Kong, 90% in international offerings, and about 15% of over-allotment shares. The offer price is HK$33.80-HK$40.30 per share, with 200 lots per lot, and is expected to be officially listed on Friday, 14 January 2022. Entrance fee is HK$8141.43.
A shares have been listed on the Growth Enterprise Market (GEM) of the Shenzhen Stock Exchange since September 2018 (300748.SZ). The Company seeks to list H Shares on the Main Board of the Stock Exchange and conduct a dual First Listing with A Shares on the Shenzhen Stock Exchange.
Leading position in the industry
Jinli Permanent Magnet is a leading manufacturer of high-performance rare earth permanent magnet materials. Since its inception, the company has been focusing on the research and development, production and sales of high-performance NdFeB rare earth permanent magnet materials for global new energy, energy conservation and environmental protection.
According to Frost & Sullivan, the company's high-performance rare earth permanent magnet material production market share of about 14.5% in 2020 ranks first in the world.
In particular, in 2020, the company used grain boundary penetration technology to produce 4111 tons of high-performance rare earth permanent magnet materials, ranking first in the world in the grain boundary penetration rare earth permanent magnet material market, accounting for about 21.3% of the market share.
Jinli permanent magnet products are widely used in new energy vehicles and auto parts, permanent magnet wind turbines, energy-saving inverter air conditioners and other industries.
In the first half of 2021, the company's revenue in the field of new energy vehicles and auto parts reached 317 million yuan, an increase of 149.63% over the same period of the previous year, and the sales volume of the company's new energy vehicle drive motor magnet products in the first half of 2021 can be assembled with about 376,000 new energy passenger cars.
In the field of new energy vehicles and auto parts, the company is Tesla, BYD, United Automotive Electronics and other new energy vehicle drive motor magnet suppliers, SAIC, Weilai, Ideal Automobile are the company's end users, the company is also Bosch Group for many years auto parts magnet suppliers. The company is also a supplier of rare earth permanent magnet materials for Volkswagen and General Motors new energy vehicle platforms.
Revenue and net profit have doubled
Jinli permanent magnet revenue of 1.282 billion yuan in 2018 increased to 1.63 billion yuan in 2019, and further increased to 2.289 billion yuan in 2020, with a compound annual growth rate of 33.6% from 2018 to 2020.
In the first half of this year, revenue was 1,766.5 million yuan, compared with 915.5 million yuan in the same period last year.
Among them, the revenue from the new energy automobile industry was 317.1 million yuan, compared with 127 million yuan in the same period last year. Revenue from the energy-efficient inverter air conditioning sector was $339.5 million, compared to $776.7 million in the same period last year.
As of September 30 this year, net profit was 329.1 million yuan, compared with 148.4 million yuan in the same period last year.
The Company intends to use approximately 35% of the net proceeds from the offering to build the Ningbo production base; Approximately 25% is expected to be used for potential acquisitions by the end of 2023 to expand the company's global portfolio; About 20% is expected to be used for the company's research and development; About 10% will be allocated to repay the company's Baotou production base project construction loan; and approximately 10% is expected to be used for the Company's working capital and general corporate purposes.
The introduction of a number of cornerstones such as the mixed ownership reform fund for state-owned enterprises
Jinli Permanent Magnet has entered into a cornerstone investment agreement, assuming a offer price of HK$37.05 (i.e. the median offer price), the total number of offer shares to be subscribed by cornerstone investors is 58.4308 million shares, equivalent to approximately 46.57% of the issued H shares after the completion of the global offering.
Cornerstone investors include the China State-Owned Enterprises Mixed Ownership Reform Fund, CR Alpha Investment II Limited (an investment firm indirectly owned and controlled by China Resources Land Group), HHLR Fund, L.P. and YHG Investment, L.P., CITIC Prudential Life Insurance Company Limited, and China-Belarus Industrial Investment Fund.
The Company estimates that assuming that the over-allotment option is not exercised and the offer price is HK$37.05 per share (i.e. the median offer price), the Company will receive approximately HK$4,439.5 million in net proceeds from the global offering
Bill Gates bought it all!
As of the close of trading on December 31, 2021, Jinli Permanent Magnet closed at 44.89 yuan, up 98.64% from 22.60 yuan (former compound price) at the end of 2020. It rose more than 300% in its first year of listing in 2018 and about 80% in 2019.
According to the prospectus, as of 2018, 2019 and 2020 and the six months ended June 30, 2021, Jinli Permanent Magnet paid dividends of RMB40.9 million, RMB45.5 million, RMB45.5 million and RMB86.3 million respectively.
It is worth mentioning that in the list of shareholders of Jinli Permanent Magnet in the first three quarters, foreign capital such as Bill Gates' funds and Quebec Savings and Investment Group are also among the top ten shareholders.
Bill Gates' fund holds 5.7692 million shares, becoming the sixth largest shareholder. Bill Gates' fund is a new shareholder in the third quarter, so the cost price is between 30 yuan / share and 40 yuan / share.
What do analysts think?
Pacific metal new materials analyst Li Shuaihua pointed out: we must pay attention to the rare earth permanent magnet plate opportunities: the leading performance to support the industry demand outbreak trend, permanent magnet plate in the upstream resource price is expected to be stable, the gross margin margin increase is obvious, it is recommended to pay attention to: Zhongke Three Rings, Dadi Bear, Ningbo Yunsheng, Jinli permanent magnet, Zhenghai magnetic material!
The RETURN on net assets for 2018-2020 was 16.2%, 13.4% and 17.1%, respectively. Annualized RETURN on EQUIT for the six months ended 30 June 2021 was 20.7%.
In the past six months, a number of institutions have given predictions:
Can I play new?
According to the Long Bridge APP community big V "King's Ghost Animal Investment": As an A+ H share target, there is nothing to say, the fundamentals can look at A shares, and the information of H shares is only used as an auxiliary reference. Permanent magnet material industry this year because of the demand for new energy vehicle motor and stand on the outlet, the front row of enterprises rely on production capacity to win, the company is the current second in the permanent magnet material industry, according to the latest information disclosure, the existing 12,000 tons of permanent magnet billet annual output, design capacity of 23,000 tons. Industry leader $Zhongke Sanhuan. SZ' current capacity is 13,000 tons, and this week it just received a second consecutive rise and stop due to the unexpected annual report forecast. $Golden Power Permanent Magnet. SZ's recent trend has been tepid, but this year's gains have also doubled, and it is a long bull stock.
H shares this plan to raise up to about 5 billion Hong Kong dollars, the prospectus price of 33.8 ~ 40.3 Hong Kong dollars, corresponding to about 27.67 ~ 33 yuan, A shares currently quoted at about 45 yuan, equivalent to a discount of 27% to 40%, the median pricing of the issue of P/E ratio of 106 times, but this is a static price-earnings ratio, A shares of dynamic PE is about 70 times less than, converted into H shares, about 45, 6 times the appearance, placed in A shares is completely acceptable, after all, the annual report has a high probability of high growth, PE It will soon come down. Given that there were no pure permanent magnet industry stocks listed in Hong Kong before, the valuation could not be benchmarked.
In terms of cornerstone, state-owned foreign capital accounts for half of each, and there is no doubt that the company's prospects are optimistic. The mixed system reform fund of state-owned enterprises, which accounts for the largest proportion, became famous in the $Sensetime-W.HK this time, winning the reputation of "national team", and this is the second consecutive time to give a platform to mainland listed companies to see if it will attract a large amount of funds.