Jun 17, 2022 (China Knowledge) - Qingdao Taide Automobile Bearing (831278) to start trading on the Beijing Stock Exchange Jun 20, next Monday. The firm has issued 28.75 mln shares priced at RMB 4.06 per share raising RMB 116.73 mln. Its price-to-earnings ratio (PE) stands at 19.39. During subscription the IPO was 633 times oversubscribed. Zhongtai Securities acts as the lead underwriter and sponsor for the IPO. Qingdao Taide Automobile Bearing Co.,Ltd manufactures and distributes automotive bearings. The Company produces auto engine gears, auto compressor electromagnetic clutch bearings, idler bearings, water pump bearings, and mower bearings. Qingdao Taide Automobile Bearing markets products in China, America, Europe, Japan, and Southeast Asia. In FY 2021, Qingdao Taide Automobile Bearing garnered a total revenue of RMB 283 mln, up 29% YoY. In terms of net income, it achieved RMB 31 mln, rising 5% YoY. In Q1 2022, the company reported revenue of RMB 67 mln, a YoY increase of 15%, and its net profits reached RMB 5 mln, down 1% YoY. The company is in the automobile industry that is currently made of 246 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 4,043 bln, industry’s average PE of 31 times. The automobile industry’s index is up 37.90% year-to-date, ranking it the 8th place among all 29 broad industry groupings. SAIC Motor Corporation Limited (600104) takes up the top spot in terms of sales in the industry, reporting RMB 742.13 bln of sales in 2020, with a net profit of RMB 20.43 bln, at 9 times PE. The second largest is Weichai Power Co.,Ltd. (000338), a total revenue of RMB 197.49 bln and a net profit of RMB 9.21 bln, at 16 times PE. China Grand Automotive Services Group Co., Ltd. (600297) ranked third. It garnered a total revenue of RMB 158.44 bln last year, and a net profit of RMB 1.52 bln, with 13 times PE. The average industry’s PE for the same or similar stocks on Hong Kong Exchange (HKEx) and the U.S. stock markets for automobile is 28 times and 18 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 7.46% and the U.S is down 9.35%. Since January, a total of 154 companies have listed on either Shanghai or Shenzhen Stock Exchange, most are mainly in the machinery equipment, electronics and pharmaceutical and biological industries.
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