Chongqing Shunbo Aluminum’s IPO debut on Shenzhen Stock Exchange today

Chongqing Shunbo Aluminum (002996) to start trading on the Shenzhen Stock Exchange – SME Board today, at a public offering price of RMB 8.41 per share, raising RMB 445.73 mln. Its initial listing shares account for 12% of total outstanding shares. The company’s initial price-to-earning ratio (PE) stands at 22.98.

Earlier, Chongqing Shunbo Aluminum said its IPO was 3,134 times oversubscribed. Since 2019 to date, A-shares IPOs achieved median over-subscription of 2,373 times and the highest at 8,375 times. We expect the IPO to hit limit of 44% increment in its first day of listing. For subsequent 30-day trading the performances can be obtained from our China IPO Weekly.

Chongqing Shunbo Aluminum Co Ltd is a company engaged in production and sales of secondary aluminum alloy ingots. The Company’s main product is aluminum alloy ingots, and its grades include aluminum-alloy die castings (ADC12), AC4B and A380. The ADC12 is a die-cast aluminum alloy, mainly used to produce cylinder head covers and sensor brackets. The AC4B is used to manufacture thin-walled castings. The A380 is used to manufacture chassis, engine mounts, gearboxes and generators. The Company is also engaged in entrusted processing of aluminum alloy ingots business. The Company’s products are used to produce die-cast aluminum alloy and cast aluminum alloy products, covering automobiles, motorcycles, mechanical equipment and communication equipment fields.

In financial year 2019, Chongqing Shunbo Aluminum garnered a total revenue of RMB 4353.33 bln, up 2% YoY. In terms of net income, it achieved RMB 209 mln, up 18% YoY. Accordingly, return on equity (ROE) and return on asset (ROA) stood at 14.02% and 8.31% respectively, earning per share (EPS) of 0.44 RMB.

Source: China Knowledge