A-share subscription | Zhejiang Huaye (301616.SZ) starts subscription, focusing on technology to support the plastic machinery industry.

On March 17th, Zhejiang Huaye (301616.SZ) started its IPO, with an issue price of 20.87 yuan per share, a maximum subscription limit of 20,000 shares, a P/E ratio of 25.22 times, and an industry P/E ratio of 37.44 times. It belongs to the ChiNext Board of the Shenzhen Stock Exchange, with Haitong as its sponsor (main underwriter). The prospectus shows that Zhejiang Huaye is deeply rooted in the plastic machinery parts industry, mainly engaged in the research, development, production, and sales of core components for plastic molding equipment, with its main products being screws, barrels, columns, and related accessories for plastic molding equipment, mainly used in injection molding machines, extruders, and other plastic molding equipment. Injection molding equipment (also known as injection molding machines) is an important branch of the plastic machinery industry, with the highest output, highest output value, and largest exports in China's plastic machinery industry. Plastic products produced by injection molding equipment can be widely used in automobiles, household appliances, 3C products, plastic packaging, plastic building materials, and other fields. According to statistics from the China Plastics Machinery Industry Association, from 2020 to 2023, the company's market share of screw and barrel products for plastic machinery in China is 8%, 10%, 12%, and 12.5%, respectively, ranking first in the market. Currently, the company has established long-term stable cooperative relationships with many leading plastic molding equipment manufacturers at home and abroad. Overseas customers mainly include Engel, Husky, KraussMaffei, Demag, Milacron, Davis-Standard, while domestic customers mainly include Yizumi Holdings, Fuqiangxin, COSMOS MACH, HAITIAN INT'L, Tederic Machinery, Guang Zhou Hua Yan Precision Machinery, CHEN HSONG HOLD, etc. Financially, the prospectus shows that in the fiscal years 2021, 2022, 2023, and the period from January to June 2024, Zhejiang Huaye achieved operating income of approximately 808 million yuan, 782 million yuan, 736 million yuan, and 433 million yuan respectively. During the same periods, the company achieved net profits of approximately 96.02 million yuan, 81.64 million yuan, 70.56 million yuan, and 45.11 million yuan respectively.