New stock returns continue to rise, and the red-hot market welcomes a "rising star"

The new stock market has remained lively in the past week.

Four newly listed stocks lived up to expectations and all rose on their first day of trading. Among them, BEI LONG PRECISION, which debuted on the ChiNext board, rose by 192.03% on its first day, making it the first new stock this year to nearly double in a single day.

According to data, BEI LONG PRECISION is engaged in the research, development, production, and sales of precision structural components. Its products are mainly used in industries such as smartphones, wearable devices, smart homes, and automotive electronics.

According to the new stock issuance schedule, in the coming week, there is only one "lone seedling" available for subscription in the new stock market, which adheres to the concept of "always winning in new stock trading".

This stock is called Huayang Intelligent and will open for subscription next Wednesday.

Main Supplier of Domestic Air Conditioner Brand V&T Electric

Huayang Intelligent's main business is the research, development, production, and sales of V&T motors and application products.

Huayang Intelligent has long served as a major V&T motor and component supplier for leading companies in the home appliance industry, including Midea, Gree, HAIER SMARTHOME, Hisense H.A., and AUX.

Huayang Intelligent's main customers have covered most of the domestic air conditioning market. According to data from "Industry Online," the company's main customers had a total sales volume of 130 million air conditioning units in 2021, with a total market share of 82.69%.

Transformation and Upgrading in the Medical Device Field in Recent Years

Based on years of accumulated common technologies in precision V&T motors and transmission fields, in recent years, Huayang Intelligent has transformed and upgraded its layout in the medical device field, developing precision drug delivery devices such as motor-driven electronic injection pens for the medical industry.

According to the prospectus, the company's main product is the electronic injection pen, supplemented by mechanical injection pen products. It is a leading domestic research and development and production enterprise of injection pens, with a complete product line. It has been recognized by well-known biopharmaceutical companies such as Gan & Lee Pharmaceuticals, Haisco Pharmaceutical, and Xellia Pharmaceuticals, and occupies a leading position among domestic enterprises.

Among Huayang Intelligent's main customers for precision drug delivery devices: Gan & Lee Pharmaceuticals is the largest genetic engineering pharmaceutical company in China and the largest recombinant human growth hormone producer in Asia. It has a market share of approximately 70% in the water-based injection formulation (i.e., the formulation that requires the use of injection pens) in China; Haisco Pharmaceutical's self-developed PEG-Losartan is China's first domestically developed long-acting GLP-1RA, which is expected to break the monopoly of foreign pharmaceutical companies in the domestic GLP-1RA market. Huayang Intelligent is currently the first domestic enterprise to successfully obtain approval for the production of Terlipressin Injection. It is expected to form a strong alternative to Lilly's original Terlipressin drug due to its price advantage. In the development and registration stages of these drugs, the issuer has simultaneously developed supporting injection pens and has become the exclusive supplier of injection pens after the drugs are launched. In addition, Huayang Intelligent is also synchronously developing drug delivery devices for new biopharmaceuticals of several well-known pharmaceutical companies.

It is worth noting that the funds raised by Huayang Intelligent in this issuance will be mainly used for the industrialization construction project of intelligent precision injection medical devices, after deducting the issuance expenses. The amount of funds planned to be invested in this project is expected to exceed 52% of the total funds raised.

There is a gap in research and development capabilities compared to international advanced levels

In terms of performance, from 2020 to 2022, Huayang Intelligent's revenue and profits have steadily increased. The company's revenue in 2020/2021/2022 was 396/499/463 million yuan, with a year-on-year growth of +25.81%/+25.97%/-7.04%. The net profit attributable to the parent company was 60/65/63 million yuan, with a year-on-year growth of +29.90%/+7.94%/-2.55%.

The company's management initially predicts that in 2023, Huayang Intelligent is expected to achieve operating income of 460-500 million yuan, with a year-on-year growth of -0.74% to 7.89%; it is expected to achieve a net profit attributable to the parent company of 61-66 million yuan, with a year-on-year growth of -5.62% to 2.38%.

In the prospectus, Huayang Intelligent stated that compared with developed countries abroad, China started relatively late in both micro-motors and precision drug delivery device fields. There is still a significant gap in overall technological level compared to well-known companies in countries such as Japan, Germany, and the United States. The market share in the high-end product field is still not high, and further upgrading and breakthroughs are needed to participate in the competition in the high-value-added product market.