PIESAT, a Beijing-based satellite service provider, published details about its upcoming Shanghai Stock Exchange (SSE) initial public offering. The company opened a subscription to 41.5 million of its shares priced at CNY 17.25 (USD 2.51) per one on July 22. Accordingly, the IPO P/E ratio of the PIESAT’s equity amounts to 46.15, which is lower than the industry average of 49.07.
The Shanghai Stock Exchange Sci-Tech Innovation Board (known for short as STAR Market) is a new SSE-based venue designed to facilitate public trading of the local tech enterprises’ stocks. It differs from other existing Mainland China platforms, having less stringent requirements and more diverse listing criteria.
Established in 2008, Beijing PIESAT Information Technology Co., Ltd. (PIESAT) is a software-developing company that creates and markets applications for remote sensing and navigation satellites. The company has 31 offices in various cities nationwide. According to its IPO prospectus, 913 out of 1136 (over 80%) of PIESAT’s employees were directly involved in R&D activity in 2018. One of the key products of the firm is an independently developed software Pixel Information Expert (PIE) that is designed to provide its clients with integrated solutions across the wide range of industries from agriculture to the military sector.
The company’s recent financial performance is splendid: last year, it earned CNY 61.6 million (USD 9 million), with a net profit margin of 14.82%. GEOVIS (中科星图) and 21st Century Aerospace Technology (世纪空间), its direct competitors in the satellite applications market, generated profits of CNY 86.96 million (USD 12.65 million) and CNY 72.02 million (USD 10.48 million) with net profit margins of 24.39% and 11.93% respectively over the same period.
Despite the fierce market rivalry, there is still a spacious room for the satellite navigation business as numerous aerospace programs are getting commercialized lately both in China and globally.