Zhejiang Chenguang Cable Goes for IPO on Beijing Stock Exchange

Zhejiang Chenguang Cable (834639: BJSE) to start trading on the Beijing Stock Exchange on Jul 12, 2022. The firm has issued 53.67 million shares priced at CNY 4.3 per share raising CNY 230.77 million with a price-to-earnings ratio (PE) stands of 14.88. During subscription, the IPO was 96 times oversubscribed. Western Securities acts as the lead underwriter and sponsor for the IPO.

Zhejiang Chenguang Cable manufactures and distributes electric cables. The Company produces power cables, flame-resistant wires, aerial insulated cables, frequency cables, control wires, and special cable products. Zhejiang Chenguang Cable markets products in China. The company is in the electrical equipment industry that is currently made of 297 counters in Shanghai and the Shenzhen Stock Exchange with a total combined market capitalization of CNY 8,400 billion, the industry's average PE of 48 times. The electrical equipment industry's index is up 70.62% year-to-date, ranking it the 4th place among all 29 broad industry groupings.

In 2021, Zhejiang Chenguang Cable garnered a total revenue of CNY 2.12 billion, up 7% year over year. In terms of net income, it achieved CNY 61 million, rising 21% year over year. In Q1 2022, the company reported revenue of CNY 305 million, a year-over-year decrease of 6%, and its net profits reached CNY 4 million, up 215% year over year.