A-share subscription | Taihe shares (301665.SZ) open for subscription, mainly engaged in the production of pesticides such as Baijunsing and Mijunzhi.

On March 31, Taihe shares (301665.SZ) started the subscription process with an issue price of 10.27 yuan/share, a subscription limit of 7,000 shares, a P/E ratio of 13.4 times, and listed on the Shenzhen Stock Exchange, with EB SECURITIES as its sponsor. According to the prospectus, Taihe shares are mainly engaged in the research, development, production, and sales of pesticide products and functional chemicals. The company holds industry-leading positions in three core products including Baijunsing, Mupirocin, and 2,4-D, with a production scale and comprehensive technical capabilities at the industry-leading level. Relying on its own technology, rich manufacturing management experience, and good international market reputation, the company conducts sales and customization business for global customers in core technologies, core processes, and core products, making it a group manufacturing enterprise with industry-leading positions. In terms of procurement and suppliers, the company's main raw materials include xylenes, phenols, salicylonitrile, 4,6-dihydroxypyrimidine, benzofuranone, liquid ethyl chloride, trichloropropane, liquid alkali, liquid ammonia, liquid chlorine, diisopropylamine, trimethyl orthoformate, diisopropylamine, and benzyl chloride. The main suppliers of the company are Anhui Guangxin Chemical Co., Ltd., Zhejiang Hengdian Purol Import and Export Co., Ltd., Henan Pingmei Shenma Dong Chemical Co., Ltd., Mitsubishi Gas Chemical Trading, Inc., among others. In recent years, relying on good product quality, stable production supply capabilities, and strong R&D capabilities, the company has established long-term strategic partnerships with multinational companies such as Syngenta, Dow, NewFarm, ADAMA, UPL, Honeywell, etc. The export regions cover major markets in South America, North America, Southeast Asia, and Europe. In terms of finance, the company achieved operating income of approximately RMB 3.579 billion, RMB 5.099 billion, RMB 3.868 billion, and RMB 1.959 billion in the fiscal year 2021, 2022, 2023, and January-June 2024, respectively. The net profits were approximately RMB 4.31 billion, RMB 6.62 billion, RMB 3.38 billion, and RMB 1.1 billion respectively. It is important to note that the prospectus specifically warns investors to pay attention to environmental protection risks. The company operates in the sub-industry of chemical pesticide manufacturing under the chemical raw materials and chemical product manufacturing industry, facing issues of emissions and comprehensive treatment of "three wastes". With the comprehensive promotion of the national sustainable development strategy, the country and society are increasingly emphasizing environmental protection, and stricter environmental protection standards may be introduced in the future, leading to increased penalties for illegal emissions. The company may further increase investment in environmental protection, increase related operating costs, and potentially have a certain impact on the company's production and operation.