Smoore will be listed for hearing in the month (can be understood as “answering the questions of the Hong Kong Stock Exchange”), and the amount of funds raised will increase from 400 million US dollars (about 3.12 billion Hong Kong dollars) to 600 million to 900 million US dollars (about 4.68 billion to 7.02 billion Hong Kong dollar), the sole sponsor is CLSA.
According to reports, if the company passes the listing hearing, the company will immediately start an investor roadshow to assess the investor’s demand for an IPO.
The company said that the funds raised will be used mainly in five areas: 1. To improve production capacity, including the establishment of industrial parks in Jiangmen and Shenzhen; 2. To implement automated production and assembly lines for new production bases, upgrade group-level ERP systems and existing There are factories; 3. Investment in research and development, including the establishment of a group-level research institute in Shenzhen to develop new heating technologies and pay for product certification expenses; 4. Acquisition of promising companies that can generate strong synergies or complement each other with Mcwell’s existing business ; 5. For working capital and other general corporate purposes.
In September 2019, its subsidiary company Jiangmen Moore Electronic Technology Co., Ltd. officially started construction in the Jiangmen Industrial Park. The total investment of the project is 3 billion yuan. It is planned to build a production, research and development, sales of high-end electronic technology equipment and health and medical atomization products in one headquarters. It is expected to be completed and put into operation in 2021. After the overall commissioning, the annual output value is expected to exceed 10 billion yuan and the annual tax contribution will exceed 200 million yuan.
On the other hand, if Smoore is finally listed successfully, its valuation and stock price trend are the concerns of investors.
In an interview with a Securities Daily reporter, Yan Zhaojun, an analyst at Zhongtai Financial International Co., Ltd., said that in terms of new stocks, market value, business, concepts and other factors will affect the IPO response. Companies with small market values have a greater tendency to oversubscribe multiples, Smoore fundamentals are relatively good, but the scale is large, the market expects that the hype will definitely be less than that of China Tobacco Hong Kong. At that time, the market may use China Tobacco Hong Kong’s performance as a reference, but the stock price performance will be different. Information shows that during the listing of the New Third Board, Smoore’s yield was more than ten times, and the market value before delisting was 8.53 billion yuan.
However, Wan Yongqiang, director of the Zhitong Finance Research Center, believes that Smoore does not have a state-owned background. On the other hand, Smoore’s business is mainly in the United States and China. From the perspective of regulation, the growth of the company’s future performance will affect investors’ expected.
Regarding valuation, some analysts bluntly believe that Smoore‘s net profit in 2019 exceeded 2 billion yuan. According to PE of 10 to 15 times, the valuation is expected to reach about 30 billion yuan.