Core Viewpoint - Marco Polo Holdings Co., Ltd. is initiating a public offering, aiming to issue 119.492 million shares at a price of 13.75 yuan per share, resulting in a diluted static P/E ratio of 14.27 times for 2024, which is significantly lower than the industry average of 32.20 times and 27.69 times for comparable companies, indicating reasonable pricing [1] Group 1: Company Overview - Marco Polo owns two major brands, "Marco Polo Tiles" and "Weimei L&D Ceramics," which have high recognition in the industry and are exported globally [2] - The company has achieved significant innovation in product design, with proprietary technologies such as curved rock slabs and AI random infinite patterns, allowing for personalized and artistic new material products [2] Group 2: Industry Trends - The green manufacturing capability is becoming a key competitive factor for building ceramic companies, driven by the "dual carbon" policy and energy consumption control [4] - The new policy for the building materials industry aims for green building materials revenue to exceed 300 billion yuan by 2026, promoting a shift from traditional homogeneous competition to new green building material sectors [4] Group 3: Competitive Advantage - Marco Polo has proactively engaged in green practices in production, utilizing tailings recycling technologies and low-temperature fast firing, achieving a fully green and low-carbon production process [5] - The company has received national "Green Factory" titles for several subsidiaries, reinforcing its commitment to sustainable manufacturing [5] - In 2024, Marco Polo's gross margin reached 38.46%, an increase of 3.36 percentage points from 2022, positioning it as a leader in the industry [5] Group 4: Market Opportunities - The building ceramic industry is expected to see improvements despite recent challenges, with policies aimed at stimulating domestic consumption and enhancing the application of green building materials [7] - Analysts believe the building materials sector is approaching a turning point, with limited downside potential compared to 2024, suggesting a recovery in both fundamentals and valuations [8] - Marco Polo is positioned to benefit from industry structural transformations, being the top revenue earner in the domestic building ceramic sector from 2022 to 2024 [8] Group 5: Consumer Trends - There is a shift in consumer behavior towards purchasing overall space solutions rather than individual products, which is driving the growth of large home decoration enterprises [9] - Marco Polo is actively collaborating with large home decoration companies to expand its sales channels and stabilize performance [10] - With over 8,000 sales terminals, Marco Polo is well-equipped to absorb new production capacity, enhancing its market presence [11] Group 6: Future Outlook - The competitive landscape in the building ceramic industry is expected to evolve towards higher concentration, deeper green practices, and value transformation [11] - Smaller companies lacking green technology may exit the market under pressure from raw material costs and environmental standards, allowing leading firms like Marco Polo to capture market share [11] - As consumer preferences shift towards quality, brand, and environmental considerations, Marco Polo's strengths align with these trends, potentially enhancing its market share and profitability [11]