Core Viewpoint - Jiaotong Tiefa (920027.BJ) has initiated its subscription with an issue price of 8.81 CNY per share and a maximum subscription limit of 906,700 shares, reflecting a price-to-earnings ratio of 12.94 times, and is listed on the Beijing Stock Exchange with Guotou Securities as its sponsor [1] Group 1: Company Overview - Jiaotong Tiefa is a high-tech enterprise specializing in the research, development, production, and sales of intelligent products and equipment for rail transit, as well as providing professional technical services [1] - The company focuses on the safety of rail transit infrastructure and has developed strong technical research, production capabilities, and service strength over the years [1] - Main products and services include intelligent products and equipment for rail transit, safety monitoring and detection products, railway information systems, new materials, intelligent equipment, surveying services, and operation and maintenance services [1] Group 2: Technology and Solutions - The company utilizes core technologies such as interference signal recognition, seismic phase recognition, earthquake three-element estimation, nonlinear ultrasound and acoustic emission monitoring, 3D laser radar and video monitoring, railway construction and operation information technology, and passive rapid rail grinding vehicles to address industry pain points [1] Group 3: Market Applications - Products and services are widely applied in high-speed railways, conventional railways (including heavy-haul railways), and urban rail transit, with notable projects including Beijing-Zhangjiakou High-speed Railway, Beijing-Shanghai High-speed Railway, and Guangzhou Metro [2] - Major clients include large state-owned groups related to railways, such as China National Railway Group, China Railway Construction Corporation, and China Railway Group [2] Group 4: Financial Performance - For the fiscal years 2022, 2023, and 2024, Jiaotong Tiefa achieved revenues of approximately 235 million CNY, 273 million CNY, and 335 million CNY respectively, with net profits of approximately 33.78 million CNY, 48.96 million CNY, and 56.10 million CNY respectively [2] - Total assets as of December 31 for 2022, 2023, and 2024 were approximately 395.64 million CNY, 445.75 million CNY, and 635.95 million CNY respectively, with total equity of approximately 160.39 million CNY, 216.37 million CNY, and 266.70 million CNY respectively [3] - The company's asset-liability ratio for the parent company was 57.09%, 51.57%, and 58.42% for the years 2022, 2023, and 2024 respectively, with gross profit margins of 45.76%, 46.57%, and 44.50% [3]

Investment Rating - The report suggests a "Buy" rating for the company, indicating a positive outlook for investment opportunities in the near future [2][5]. Core Insights - The company, Jiao Da Tie Fa, is recognized as a national-level "Little Giant" in the field of rail transit infrastructure safety and intelligent products, with a focus on technological innovation and industry upgrades supported by the National Railway Group [2][11]. - The company plans to raise funds through an initial public offering (IPO) to invest in new production projects, a research center, and marketing networks, which are expected to significantly increase revenue and profit [8][9]. - The rail transit infrastructure market is experiencing substantial growth, with national fixed asset investment in railways reaching 850.6 billion yuan in 2024, a year-on-year increase of 11.3% [33][37]. Summary by Sections 1. Initial Issuance - The company is issuing 19.09 million shares at a price of 8.81 yuan per share, with an initial price-to-earnings (P/E) ratio of 12.6X [2][5]. - The total number of shares after issuance will be 76.34 million, with the issuance accounting for 25.01% of the total shares before any over-allotment [5][6]. 2. Fundraising and Investment Projects - The funds raised will be allocated to projects including the construction of a new production facility for rail transit intelligent products, a research center, and a marketing and after-sales service network [8][9]. - The new production project is expected to generate an additional annual revenue of approximately 247.15 million yuan and a net profit of about 30.10 million yuan upon reaching full capacity [9][10]. 3. Company Overview - Founded in 2005, the company specializes in rail transit safety products and has established partnerships with several universities and research institutions [11]. - The company has participated in significant national railway projects, including the Beijing-Zhangjiakou High-Speed Railway and the Jakarta-Bandung High-Speed Railway [11]. 4. Financial Performance - From 2020 to 2024, the company's revenue is projected to grow from 154 million yuan to 335 million yuan, with a compound annual growth rate (CAGR) of 21% [27]. - The net profit is expected to increase from 19.85 million yuan to 53.39 million yuan during the same period, with a CAGR of 28% [27][32]. 5. Market Potential - The report highlights the strategic importance of railway construction and information technology in promoting economic development, with significant investments planned for the coming years [33][34]. - The company is well-positioned to benefit from the growing demand for rail transit infrastructure, supported by government policies and increasing urbanization [33][38].