A-share IPO subscription | Leading soft magnetic company Chuangguang Group (301531.SZ) launches subscription, with current magnetic powder production capacity exceeding 100,000 tons.

On April 24, Chun Guang Group (301531.SZ) started the subscription, with an issue price of 13.3 yuan per share, a subscription limit of 14,000 shares, a P/E ratio of 26.02 times, listed on the Shenzhen Stock Exchange, and CICC as its sponsor. The prospectus shows that Chun Guang Group is mainly engaged in the research, production, and sales of soft magnetic ferrite magnetic powder, and develops products such as soft magnetic ferrite magnetic cores, electronic components, and power supplies along the industry chain. The company's main business is operated by Chun Guang Magnetoelectric, Kaitong Electronics, Yutong New Energy, Haiyingte, and Bilusi Kaitong, five wholly-owned subsidiaries. The company has long been focused on the field of manganese-zinc soft magnetic ferrite materials. Through years of product innovation and process improvement, it has become one of the few manufacturers in the industry that can supply quality and stable soft magnetic ferrite materials on a large scale with excellent performance. According to the statistics and forecasts of QY Research (Hengzhou Bozhi), the global sales of soft magnetic ferrite materials reached 2.676 billion US dollars in 2024, and it is expected to reach 3.687 billion US dollars in 2031, with an annual compound growth rate of 4.8%. China is the main producer and market for soft magnetic ferrite materials globally. In terms of the domestic market for soft magnetic ferrite materials, according to the statistics of the Magnetic Materials Branch of the China Electronic Materials Industry Association, the sales volume of soft magnetic ferrite in China from 2020 to 2024 were 415,000 tons, 460,000 tons, 482,000 tons, 480,000 tons, and 506,000 tons respectively, with an average annual compound growth rate of 5.08%. The sales revenue during the same period were 8.28 billion yuan, 11.22 billion yuan, 10.652 billion yuan, 9.072 billion yuan, and 9.159 billion yuan respectively. During the reporting period, the sales volume of soft magnetic ferrite magnetic powder (excluding internal sales) were 76,800 tons, 82,200 tons, and 101,600 tons. According to the data and calculations of the Magnetic Materials Branch of the China Electronic Materials Industry Association, the company's sales volume of soft magnetic ferrite magnetic powder ranked first in the domestic market in 2022, 2023, and 2024. It is reported that after deducting issuance expenses, the company plans to invest in the following projects: Chun Guang Group introduced that the company's existing magnetic powder production capacity exceeds 100,000 tons, and the related production lines are running at full capacity. The capacity utilization rate from January to June 2025 was 100.66%, slightly higher than 100%, mainly due to compact production arrangements and efficiency improvements. Chun Guang Group mentioned that in 2024, the company's production capacity of soft magnetic ferrite magnetic powder was 107,100 tons per year. After the completion of the investment projects, it will add a production capacity of 75,000 tons of magnetic powder and 3.2 million power products. The original power production capacity will be relocated to the new investment production line, and the related original equipment will be unified into the investment project construction. After the commissioning of the power production line of the investment project, the company's total annual power output in 2026 will be 3.2 million. The magnetic powder production line is planned to be put into production from 2025 to 2029, with an estimated additional production capacity of 25,000 tons, 14,000 tons, 13,000 tons, 13,000 tons, and 10,000 tons. Chun Guang Group has established a large-scale production capacity system, with an overall capacity leading in the industry. The sales volume of soft magnetic ferrite magnetic powder in 2024 was 101,600 tons, and the market share in the soft magnetic materials market was 12.80%. The company's power product business is relatively small. After the completion and production of the investment projects with the raised funds, the company will expand the core product capacity. In terms of finance, in 2022, 2023, and 2024, the company's operating income was approximately 1.015 billion yuan, 930 million yuan, and 1.077 billion yuan respectively; and the net profit for the same periods was approximately 77.1375 million yuan, 87.0332 million yuan, and 98.8897 million yuan respectively.