CNGR(SZ:300919) Xin Lang Zheng Quan·2025-11-12 09:57Core Viewpoint - Zhongwei Co., Ltd. is launching a global IPO on November 7, with pricing expected on November 13 and trading on November 17, amid a backdrop of declining stock prices, state-owned fund reductions, and profit declines, indicating a desperate capital-raising attempt [1][2]. Group 1: IPO Details - The IPO price range is set between 34.00-37.80 HKD per share, with a base issuance of approximately 104 million shares, leading to a fundraising scale of about 35.4-39.4 billion HKD, potentially reaching 40.8-45.3 billion HKD if the overallotment option is fully exercised [1]. - The pricing represents a discount of 29.2%-36.3% compared to the A-share closing price of 48.67 RMB on November 12 [3][4]. Group 2: Financial Performance - Zhongwei's revenue for 2024 is projected to reach 40.2 billion RMB, a 17% increase, but the net profit is expected to decline by 24.6% to 1.47 billion RMB, marking the first profit drop since its listing [7]. - In 2025, the company continues to face challenges, with revenue growth slowing to 10.4% in the first three quarters, while net profit fell by 15.9% to 1.11 billion RMB [7]. Group 3: Investor Sentiment - The IPO has attracted nine cornerstone investors, raising a total of 210 million USD, which accounts for 46.8% of the base issuance. However, the investor base is heavily skewed towards government and industrial funds, indicating potential risks due to lack of diversified support [5][6]. - The exit of state-owned funds and low foreign investment participation reflect a negative sentiment towards the company, with foreign holdings below 2% as of the third quarter [5][6]. Group 4: Market Trends - The performance of "second marriage stocks" like Zhongwei has been underwhelming, with recent IPOs experiencing significant price drops post-listing, indicating a cautious market sentiment towards such offerings [3][4]. - The company's reliance on key metals like nickel and cobalt, without upstream resource control, exposes it to commodity price volatility, further impacting profitability [7].