HK Stock IPO: Impression Dahongpao Subscription Analysis
Impression Dahongpao Co., Ltd. is a state-owned cultural tourism enterprise headquartered in Wuyishan, Fujian Province. Its core business is operating China's renowned live-action performance "Impression·Dahongpao" and has launched a new performance "Moonlight over Wuyi". It is also expanding synergistic businesses such as Impression Cultural Tourism Town and Tea Soup Hotel, aiming to build a comprehensive cultural tourism platform integrating performances, tourism, leisure, and cultural experiences.
The global offering is expected to raise a net amount of approximately HKD 110.4 million, which will be proportionally allocated for upgrading the "Impression·Dahongpao" performance (23.0%), developing Impression Cultural Tourism Town (28.6%), acquiring new cultural tourism performance projects (20.0%), brand promotion (11.0%), ticketing system upgrades (7.4%), and working capital (10.0%).
Offering Information and Lottery Rate
The company is offering 36.1 million shares globally, with 1,000 shares per lot. As of press time, the oversubscription rate is 144.79 times. Mechanism B is adopted for the offering, with 1,805 lots each for Group A and Group B. It is estimated that 80,000 to 120,000 people will participate, with a one-lot winning rate of 0.8%, and all participants will enter the lottery.
Financial Status
Revenue: RMB 63.039 million in 2022, RMB 144 million in 2023, RMB 137 million in 2024, and RMB 142 million for the last 12 months as of June 30, 2025.
Gross Profit: RMB 17.178 million in 2022, RMB 83.122 million in 2023, RMB 74.893 million in 2024, and RMB 73.105 million for the last 12 months as of June 30, 2025.
Annual Profit: Net loss of RMB 2.599 million in 2022, net profit of RMB 47.504 million in 2023, net profit of RMB 42.809 million in 2024, and net profit of RMB 36.905 million for the last 12 months as of June 30, 2025.
The company has a robust cash flow position, holding approximately RMB 641 million in cash and cash equivalents as of June 30, 2025, with controllable major cash outflows such as lease liabilities, and no significant liquidity risks.
Comprehensive Review
Impression Dahongpao mainly relies on the exclusive IP of the live-action performance "Impression·Dahongpao" to support its valuation. This type of regional exclusive performance right has a strong entry barrier protection mechanism and is also the company's core moat project, generating stable cash flow. Comparable company Songcheng Performance owns the popular IP of the theme performance "Songcheng Eternal Love", with a current total market capitalization of RMB 20.94 billion, a static P/E ratio of 19.97x, and a TTM P/E ratio of 26.36x. Another comparable company, Lijiang Co., Ltd., also has similar businesses, with a total market capitalization of RMB 4.885 billion and a TTM P/E ratio of 23.20x.
Impression Dahongpao has an issuance market capitalization of HKD 500-591 million and a TTM P/E ratio of 12.20-14.41x. Benchmarking shows it is quite reasonable among this wave of new listings. This fundraising aims to raise HKD 125-148 million, with the public portion priced at the upper limit of HKD 15 million in float value and a total of 3,610 lots in the public portion. The small scale allows for easy manipulation. Everything else is good, except that winning a lot is difficult.
The company's "Impression·Dahongpao" IP premiered in March 2010 and has been operating for 15 years. It was listed on the New Third Board in January 2017, making it a company with dual listings on the New Third Board and H-shares. The new project "Moonlight over Wuyi" premiered and was publicly performed in April and May 2025, with no results yet, requiring continued investment and popularity accumulation.
Overall, it's a Fujian stock, a small-scale mini-ticket. Referencing historical cases like Golden Leaf and QuantGroup, the only downside is the hellish difficulty of the lottery rate. Fortunately, too many new listings this time have diverted a lot of capital and popularity, making the opportunity much greater than during the Golden Leaf and QuantGroup periods. But it's important to recognize that this type of stock earns money from small-ticket emotional premiums.
Subscription Plan:
I will subscribe. It's the only stock among the four in this wave that can be safely subscribed to, and these four stocks conflict with the first two and the last three. I'll make a ranking in the community tonight. Everyone can refer to it when subscribing.
$IMPRESSION DHP(02695.HK)
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