Star Market IPO Hopefuls Post Higher First-Half Earnings
Liao Shumin
DATE:  Jul 16 2019
/ SOURCE:  yicai
Star Market IPO Hopefuls Post Higher First-Half Earnings Star Market IPO Hopefuls Post Higher First-Half Earnings

(Yicai Global) July 16 -- China's HYC Technology and Raytron Technology, two of the 25 upcoming first listees on Shanghai's Star Market, have reported increasing net profits in the first half of this year ahead of their initial public offerings next week. 

HYC, which makes chip testing systems for Apple, Samsung, and LG Electronics, logged CNY135 million (USD19.6 million) in net profit attributable to shareholders of the parent, a 27 percent boost from the previous year, according to the Suzhou-based firm's earnings report. Its operating income rose 71 percent to CNY698 million as sales increased. The firm expected this quarter to be equally smooth. 

The Nasdaq-style market, formerly known as the Science and Technology Innovation Board, was officially launched on June 13 and it aims to make it easier for tech startups to secure funding. The first group of listees will start trading on July 22. 

Raytron, a chip and sensor maker, more than doubled its net profit to CNY64.7 million during the same period. The Yantai-based company's revenue rose by more than two-fold to CNY254 million as sales of products, including infrared sensors, grew rapidly while costs remained the same. 

Both of the firms' price-to-earnings ratios exceed the average of their sectors. HYC's P/E ratio is over 41, while the mean of the special equipment manufacturing industry is 31.1. That of Raytron is 79.1, higher than the 30.6 average of the computer, communication and electronic equipment sector.

Editor: Emmi Laine 

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Keywords:   SSE Star Market,HYC Technology,Raytron Rechnology,IPO