A-share subscription | Modified engineering plastic developer Zhongsu Co., Ltd. (301686.SZ) opens for subscription, with clients including Luxshare Precision Industry and other enterprises.

On September 10, Zhongsu Co., Ltd. (301686.SZ) began subscription, with an issue price of 55.28 yuan per share, a subscription limit of 0.25 million shares, and a price-to-earnings ratio of 22.2 times, listed on the Shenzhen Stock Exchange, with Guosen as its sponsor. The prospectus indicates that Zhongsu Co., Ltd. focuses on the research, development, production, and sales of modified engineering plastics. The company's main products are used in industries such as consumer electronics, energy storage, automotive, and home appliances, with end products including mobile phones, smart wearable devices, tablet computers, laptops, Bluetooth speakers, energy storage power supplies, new energy vehicles, and various home appliances. Zhongsu Co., Ltd. has direct customers covering major domestic manufacturers of components, modules, and precision structural parts, such as BYD Company Limited, Foxconn, Huaqin Co., Ltd., Wingtech Technology, LONGCHEER, Shenzhen Everwin Precision Technology, Goertek Inc., AAC TECH, Lingyi Itech, Luxshare Precision Industry, Dongguan Chitwing Technology, and Huizhou Speed Wireless Technology. In addition, the company has entered the qualified supplier resource pool of several end brand customers, including industry leaders such as Samsung, Huawei, Xiaomi, OPPO, Transsion, BOSE, Lenovo, Xiao Tian Cai, Anker Innovations Technology, Zhenghao Technology, BYD Company Limited, and Jiangling. According to data from the National Bureau of Statistics and Zhiyan Consulting, from 2016 to 2024, China's plastic production increased from 83.078 million tons to 127.516 million tons, with an average annual compound growth rate of 5.50%. In terms of specific categories, both general plastics and engineering plastics showed a year-on-year growth trend. From 2016 to 2024, general plastic production increased from 80.635 million tons to 121.694 million tons, with an average annual compound growth rate of 5.28%; engineering plastic production increased from 2.443 million tons to 5.822 million tons, with an average annual compound growth rate of 11.47%. Due to a significant surge in downstream demand for mid-to-high-end modified plastic products, it is expected that China's engineering plastic production will see a year-on-year growth of 28.92% in 2024, significantly higher than the growth rate of general plastics. From 2016 to 2024, the proportion of engineering plastics in China's total production increased from 2.94% to 4.57%, while the production of modified engineering plastics rose from approximately 680,000 tons to about 2 million tons. It is estimated that from 2025 to 2031, production will increase from about 2.22 million tons to approximately 4.08 million tons, with a compound annual growth rate of 10.68%, indicating considerable room for future penetration growth. The market for engineering plastics and modified engineering plastics has significant market prospects. In terms of finances, the company's operating revenues for the years 2023, 2024, and 2025 are expected to be approximately 537 million yuan, 700 million yuan, and 749 million yuan, respectively; during the same periods, net profits are expected to be approximately 78.9978 million yuan, 100 million yuan, and 126 million yuan.