Wen Peng Rong

Editor Peng Xiaoqiu

hard krypton learned that Jiangsu keqiang new materials co., ltd. (hereinafter referred to as "keqiang new materials") opened the subscription of new shares (873665.BJ) on the north stock exchange today, with an issue price of 6.28 yuan/share, which is the sixth enterprise in Wuxi city to pass the meeting of the north stock exchange. According to the fund-raising estimate, its market value exceeds 0.8 billion yuan.

Keqiang New Materials is mainly engaged in the research and development, production and sales of high-performance special rubber products. It is a national-level specialized and special new "little giant" enterprise. Products mainly include four categories, namely, silicone plate, vehicle through the shed cloth, rubber sealing products, special tape tape products, respectively, mainly used in photovoltaic, rail transit, petroleum and petrochemical, iron and steel metallurgy and other fields.

Figure source prospectus

In terms of revenue, from 2020 to 2022, it will be 0.245 billion yuan, 0.279 billion yuan and 0.284 billion yuan respectively, with a compound growth rate of 7.73 in the last three years; in terms of profit, net profit after deduction will be 0.053 billion yuan, 0.039 billion yuan and 0.051 billion yuan respectively, with a compound growth rate of -2.02 in the last three years. Among them, the sharp decline in non-net profit in 2021 is mainly related to bad debt losses from downstream customers.

In the field of photovoltaics, the silicone plate products of Keqiang New Material can be divided into solar silicone plate products and other silicone plate products. Among them, solar silicone products accounted for more than 70% of revenue. Major customers include Longji Green Energy (601012.SH), Jingke Energy (688223.SH), Trina Solar (688599.SH), Oriental Sunrise (300118.SZ), etc.

in the field of rail transportation equipment, keqiang new materials vehicle through road shed cloth products can be divided into silicone/aramid shed cloth and sea paron/polyester shed cloth, mainly used in high-speed rail, subway, light rail, channel buses and other transportation equipment. The main customers include the Group (603680.SZ), Yonggui Electric (300351.SZ) and so on.

In the fields of petroleum and petrochemical and iron and steel metallurgy, the large rubber sealing products of Keqiang New Materials can be divided into storage tank rubber seals and gas tank rubber sealing membranes. Major customers include PetroChina, Sinopec, Baosteel Engineering Technology, etc.

In addition, Keqiang New Material's special tape products mainly include light rubber conveyor belts, rubber inflatable marine tape, bridge cable wrapping belts and other products, which can be used in food processing, logistics and transportation, airport transportation and other fields. The main customers include Reclean Environmental Protection (688335.SZ), Jinchen shares (603396.SH) and so on.

2021-2022, Jinchuang Group is the largest customer of Keqiang New Materials, with sales of 27.2179 million yuan and 26.6738 million yuan respectively, accounting for 9.76 and 9.39 respectively. At the same time, Jinchuang Group is also one of the shareholders of Keqiang New Materials, holding 4.24 per cent of the shares.

In 2020, Longji Green Energy will become the third largest customer of Keqiang New Materials with sales of 7.614 million yuan, accounting for 3.11 percent of sales. However, in the next two years, Longji Green Energy has not been seen in the top five customers of Keqiang New Materials.

the founder of keqiang new materials is Zhou Ming, who has a Senior high school education background. he worked as a forest farm employee in the early days. after 20 years as a factory director in a leather factory, he founded keqiang new materials together with four old colleagues in the leather factory in 2001. Zhou Ming and his daughter Zhou Wen are now the de facto controllers of Keqiang New Materials, with their father and daughter holding a combined 50.97 per cent of the shares.

It is worth noting that in terms of production capacity, from 2020 to 2022, the production capacity of Keqiang New Materials will be 1.26 million square meters, 1.46 million square meters and 1.46 million square meters respectively, with capacity utilization rates of 99.76 percent, 102.43 percent and 105.54 percent respectively, and the production level and capacity utilization rate will increase year by year.

Figure source prospectus

according to the latest financial report, in the first half of this year, Keqiang's new materials revenue was 0.166 billion yuan, up 32.33 percent from the same period last year, while non-net profit was 0.033 billion yuan, up 60.54 percent from the same period last year. The main reason is the downstream high-speed rail vehicles recovery growth and photovoltaic industry expansion, vehicle shed cloth and silicone plate sales increased significantly.

in this listing, keqiang new materials will raise 0.268 billion yuan, mainly for the expansion and upgrading of the factory. Faced with the problem of limited production capacity, Keqiang's "blood transfusion" can be said to strike while the iron is hot. How to retain customers, especially leading customers, is an urgent problem after Keqiang's listing.