偉立控股開始招股,你怎麼看?
Futu News, June 17th: This Friday$WEILI HOLDINGS (02372.HK)$Announcement: The company plans to issue 0.2 billion shares from June 17th to June 22nd, with 20 million shares for public offering and 0.18 billion shares for international offering. The expected listing price per share is 0.63-0.67 HK dollars, in lots of 4000 shares, and is expected to be listed on June 30th.

The company is a cigarette packaging paper manufacturer in China with the research and development capabilities to supply customized products to customers. The company mainly supplies products to cigarette packaging manufacturers operating in various provinces of China, including Hubei Province and Henan Province. The company's products are used for manufacturing cigarette packaging for well-known tobacco brands in China.
According to the prospectus, at least 9 cigarette brands that were rated as 'double fifteenth tobacco brands' (the top 15 cigarette brands in terms of sales volume in China's mid-to-high-end cigarette market in 2020) use the company's products as cigarette packaging materials.
According to industry reports, the company was rated as the largest cigarette packaging paper manufacturer (in terms of sales volume) in Hubei province in 2020, with a market share of approximately 14.9%.
In terms of finance, the revenue of Weili Holdings for the fiscal years 2019 to 2021 were 0.313 billion, 0.318 billion, and 0.37 billion RMB respectively, with a compound growth rate of 8.72%. The net income for the same period were 34.297 million yuan, 42.171 million yuan, and 35.687 million RMB respectively, with a compound growth rate of 2.01%.

In terms of the industry, China has the largest cohort of cigarette consumers in the world, with approximately 300.6 million smokers in 2020. In the fiscal year 2021, the sales value of cigarettes in China reached 1490.3 billion yuan, and it is expected to increase to 1590 billion yuan by the fiscal year 2025.

In the Chinese cigarette sales market, the sales share of middle and high-end cigarettes is significant. In the fiscal year 2021, the sales value of middle and high-end cigarettes reached 1474.4 billion yuan, and it is expected to increase to 1586.1 billion yuan by the fiscal year 2025.

The company plans to use the net proceeds from the global offering for the following purposes: approximately 35.4% will be used to build a two-story factory building of approximately 8,200 square meters; approximately 25.9% will be used to purchase four advanced composite machines and ten automatic control systems; approximately 19.5% will be used to enhance research and development capabilities; approximately 6.4% will be used to improve the company's enterprise resource planning system and infrastructure system to enhance operational efficiency; approximately 2.9% will be used for increased marketing expenses; and approximately 9.9% will be used for general working capital.
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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