Commemorative
Buffett Apprentice[New Stock Analysis] Mengjinyuan Subscription Strategy
Mengjin Garden (02585.HK), as a leading company deeply engaged in the gold and jewelry market, recently announced that it will officially start its IPO on November 21, 2024, and list on the Hong Kong Stock Exchange on November 29. Founded in 2000 by the couple Wang Zhongshan and Zhang Xiuqin, Mengjin Garden started from Changle Huaye Jewelry and gradually developed into one of China's top original gold and jewelry brand manufacturers. The company is mainly engaged in the procurement, design, wholesale, trademark licensing, and retail of gold, platinum, and jewelry products. Its footprint spans Hong Kong, Macau, mainland China, Singapore, South Korea, the United States, Canada, and Australia, with approximately 1,400 stores, demonstrating strong market coverage and brand influence.
1. Financial Data and Market Position
According to the prospectus and market data, Mengjin Garden has maintained stable performance growth in recent years. From 2021 to 2023, the company's annual revenues were RMB 16.871 billion, RMB 15.724 billion, and RMB 20.209 billion, respectively, with a compound annual growth rate of 9.5%. Although net profit declined in the first half of 2024, mainly due to losses from futures hedging caused by the unilateral rise in gold prices, the overall business still shows strong growth potential. Mengjin Garden holds an important position in China's gold and jewelry market. In terms of gold processing volume, it is the third-largest gold jewelry brand in China and the only gold brand that has been ranked among the "Top 10 Gold Jewelry Processing Companies" and "Top 10 Gold Jewelry Sales Revenue Companies" by the China Gold Association for six consecutive years.
2. Market Prospects and Competitive Advantages
As the world's largest gold consumer and jewelry market, China's market potential has become increasingly evident in recent years. With consumption upgrading and the rise of personalized demand, consumers' demand for high-quality, high-service jewelry brands is also increasing. Mengjin Garden, with its unique design concepts and high-quality products, can better meet this market demand and enhance its competitiveness. The company's "Master Craftsman Heritage" series successfully combines traditional culture and intangible cultural heritage techniques, bringing fresh vitality to the market. In addition, Mengjin Garden has a core position in the industry and will continue to benefit from the Matthew effect, further consolidating its market position.
3. IPO Subscription Strategy
1. Issue Price and Share Allocation: Mengjin Garden's IPO price range is HKD 12 to HKD 14.4 per share, with 200 shares per lot. The global offering consists of 43.9568 million H shares, with approximately 10% for the Hong Kong public offering and 90% for the international offering, along with a 15% over-allotment option. Investors need to make choices within the issue price range based on market conditions and personal risk preferences.
2. Cornerstone Investors: Mengjin Garden has introduced five cornerstone investors, including Tianjin Haitai Capital and Matrix Capital, with a total subscription amount of approximately RMB 197 million. The participation of cornerstone investors provides additional security for the company's listing and demonstrates market recognition and confidence in the Mengjin Garden brand.
3. Market Environment Analysis: The overall performance of the Hong Kong capital market is relatively stable, and the IPO market is showing a clear recovery trend. Mengjin Garden's listing coincides with this favorable environment and is expected to attract significant investor attention. However, investors should also be aware of potential price volatility and market risks in the early stages of the IPO.
4. Subscription Advice: Considering Mengjin Garden's fundamentals, market prospects, and market environment, investors are advised to carefully participate in the IPO after fully assessing their risk tolerance and investment objectives. Investors who are optimistic about the prospects of the gold and jewelry market and the value of the Mengjin Garden brand may consider subscribing within a reasonable price range. At the same time, it is essential to closely monitor market dynamics and the overall economic situation to adjust investment strategies promptly.
4. Conclusion
As a leading original gold and jewelry brand manufacturer in China, Mengjin Garden's listing undoubtedly provides investors with an opportunity to participate in the growth of the gold and jewelry market. After fully evaluating the company's fundamentals, market prospects, and market environment, investors can cautiously participate in the IPO to share in the company's future development. However, investing involves risks, and investors should make reasonable decisions based on their risk preferences and investment objectives.$MOKINGRAN(02585.HK)
Disclaimer: The views expressed herein are personal opinions and do not constitute investment advice. Investors should assess risks independently and seek professional advice when making investment decisions. The market carries risks, and investment requires caution.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
