After the promulgation of the new regulations, the "first trial" is coming! Marco Polo starts the meeting

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After a lapse of three months, the A-share IPO market once again ushered in the companies that will be on the meeting!

Before the IPO review, the market had just announced the new "National Nine Articles", and some industry insiders said that the new "National Nine Articles" began with the word "strict", "strictly control the issuance and listing review, and strictly supervise and prevent risks" to protect the interests of small and medium-sized investors.

Against the backdrop of such a policy, Marco Polo Holding Co., Ltd. (hereinafter referred to as "Marco Polo") will meet tomorrow.

To overcome the common phenomenon in the industry, the trend of building tile enterprises is gradually clear

In the hearts of every Chinese, home is always the warmest harbor. The secular symbol of home is a cottage where the whole family can eat three meals together for four seasons. The exquisite construction of a warm small home is often inseparable from this "big housekeeper" - home building materials.

As early as the 80s of the last century, the goods in the field of home building materials were mostly dispersed in the form of trade fairs in the country, and at that time there was no large-scale mature manufacturer in China. In the 90s, more concentrated home furnishing stores and unique building materials brands began to appear in various places. Since then, the field of home building materials has officially entered an era of rapid development.

The ceramic tile industry, as the mainstay of structural materials in the field of home building materials, has given every public building and every family a unique color. After the announcement of the new listing regulations, Marco Polo, the first company at the meeting, belonged to the ceramic tile industry.

On April 28, 2023, Gong Wei, Secretary-General of China Building and Sanitary Ceramics Association, said at the "2023 China Ceramic Tile Trend Conference" held in Gao'an, Jiangxi Province, that the building ceramics industry is an industry that is highly dependent on real estate and is experiencing a transformation from an incremental market to a stock market, from the factory era to the user era. Under the background of carbon peaking and carbon neutrality, the living space is narrow and the competition is more intense.

In the face of the situation, Gong Wei emphasized that "according to the survey, during the 13th Five-Year Plan period, the market concentration of the top 10 enterprises in the building ceramics industry reached 18%, that is, the past five years have only increased by 3%, but in the next three to five years, the market concentration will increase rapidly, and it is expected that in the next five to seven years, the top 20 brands will occupy 50% of the market share. ”

In addition, in addition to real estate, there are many channels such as the second-hand housing market and urban reform, especially the second-hand housing market, since the announcement of the State Council in 1998 on further deepening the reform of the urban housing system and accelerating the construction of housing, as of the end of 2023, the cumulative sales of residential commercial housing in China have reached 22.122 billion square meters, generally speaking, the durability of residential decoration is 8-10 years, and in the complete life cycle of the residence, there is a need for many times of decoration. At the same time, the continuous adjustment of the economic structure, the acceleration of population movement, and the purchase restriction order in some cities will promote the development of the real estate stock market, which in turn will accelerate the frequency of residential renovation. And this also gives ceramic tile enterprises a broad space for development.

According to the "2023 China Ceramic Tile Industry Analysis Report", ceramic tiles are widely used in residential shopping malls, hotels, office buildings, large venues and municipal engineering and other building decoration, of which residential is the main downstream application scenario of ceramic tiles, accounting for about 60% of ceramic tile consumption demand.

At present, the ceramic tile industry generally has high accounts receivable and a long payment cycle. In the past, most ceramic tile enterprises have long been deeply bound to downstream real estate enterprises, and the business model and payment cycle are closely related to the degree of real estate prosperity, and there are high commonalities in financial indicators of accounts receivable.

This commonality is due to the relatively large scale of sales and the fact that most of the income is settled by accounts receivable or commercial paper. In this context, affected by the real estate industry, as a ceramic tile enterprise closely connected with real estate, accounts receivable continue to increase has become a common phenomenon in the industry.

At present, under the help of a number of favorable factors such as the introduction of relevant support policies by the state, the gradual bottoming out and stabilization of the real estate industry, the considerable building materials industry, and the active transformation and upgrading of the enterprise itself, the industry phenomenon of high accounts receivable of ceramic enterprises may be improved. At the same time, the asset-liability ratio of ceramic enterprises is also getting better, at present, Marco Polo, New Pearl, Dongpeng Holdings, Mona Lisa, Diou Home Furnishing disclosed the asset-liability ratio in the latest financial statements are 37.67%, 37.36%, 34.18%, 60.08%, 66.83%, Marco Polo, New Pearl, Dongpeng Holdings' asset-liability ratio is less than 38%, of which Marco Polo's asset-liability ratio will decrease from 55.45% in 2021 to 37.67% in 2023, That's a drop of almost 18 percentage points.

Marco Polo fundraising project: respond to the call of policies and enhance competitiveness

Marco Polo's IPO is listed on the main board of the Shenzhen Stock Exchange, and it wants to raise 3.158 billion yuan and issue no less than 10% of the equity to the public.

Combined with Marco Polo's net profit of 1.353 billion yuan in 2023, if Marco Polo is successfully listed, its initial price-earnings ratio may be 23.34 times.

According to the Choice financial terminal, as of May 12, a total of 27 companies will land on the A-share market in 2024, with an average initial P/E ratio of 25.77 times, of which 4 new companies have been added to the main board of the Shenzhen Stock Exchange, with an average initial P/E ratio of 25.19 times, and Marco Polo's initial P/E ratio is lower than the above two sets of data.

From the perspective of subdivision, the 3.158 billion yuan raised by Marco Polo through the IPO will be used for the construction project of Jiangxi Jiamei Ceramics Co., Ltd. Intelligent Ceramic Home Industrial Park (Phase I), Guangdong Dongwei New Materials Co., Ltd. with an annual output of 5.4 million square meters of special high-performance ceramic plate project, Jiangxi Weimei Ceramics Co., Ltd. Ceramic Production Line Green Intelligent Manufacturing Upgrading Project, Guangdong Jiamei Ceramics Co., Ltd. Green Intelligent Manufacturing Upgrading Project, Jiangxi Hemei Ceramics Co., Ltd. building ceramics production line green intelligent manufacturing upgrading project, Marco Polo Holding Co., Ltd. comprehensive capacity improvement project.

In short, it's about expanding production and upgrading products.

In terms of expansion, it is mainly composed of Jiangxi Jiamei Ceramics Co., Ltd. Intelligent Ceramic Home Furnishing Industrial Park (Phase I) construction project, Guangdong Dongwei New Materials Co., Ltd. with an annual output of 5.4 million square meters of special high-performance ceramic plate project, after the completion of the construction of the above projects, Marco Polo's high-end ceramic tiles and large-scale rock slabs, special high-performance ceramic plate production capacity will be greatly increased.

In 2020, more than 100 new rock slab production lines will be added in mainland China, and rock slabs can be used in various spaces compared to traditional ceramics, which can replace natural stone, home panels, and various organic decorative materials, which is a new growth point for the industry.

At the same time, in recent years, with the continuous change of consumer groups and consumption concepts, there is more and more demand for personalization, and the personalized and artistic characteristics of domestic decoration design are becoming more and more obvious. The expansion of Marco Polo products is conducive to the company's competitiveness in the industry.

In terms of product upgrading, it is mainly composed of the green intelligent manufacturing upgrading project of the ceramic production line of Jiangxi Weimei Ceramics Co., Ltd., the green intelligent manufacturing upgrading project of Guangdong Jiamei Ceramics Co., Ltd., and the green intelligent manufacturing upgrading project of the architectural ceramics production line of Jiangxi Hemei Ceramics Co., Ltd.

In October 2021, the State Council issued the "Action Plan for Carbon Peaking Before 2030", which pointed out that it is necessary to promote the carbon peak of the building materials industry. Strengthen the supervision of capacity replacement, accelerate the exit of inefficient production capacity, and guide the building materials industry to transform to light, intensive and product-oriented. Renewable energy sources such as wind and solar energy should be used according to local conditions, and the proportion of electricity and natural gas applications should be gradually increased. Encourage building materials enterprises to use fly ash, industrial waste residue, tailings slag, etc. as raw materials or cement mixtures. Promote energy-saving technology and equipment, carry out the construction of energy management system, and achieve energy conservation and efficiency.

At the same time, the company can also speed up the upgrading of production equipment and the improvement of product production technology, reduce the energy consumption of unit products, accelerate the realization of the company's energy conservation and emission reduction goals, improve production efficiency, and enhance the company's market competitiveness. (This article was first published on the Titanium Media APP)