Core Insights - The engineering consulting services sector experienced a decline of 1.63% on October 27, with Huajian Group leading the drop [1] - The Shanghai Composite Index closed at 3996.94, up 1.18%, while the Shenzhen Component Index closed at 13489.4, up 1.51% [1] Sector Performance - Notable gainers in the engineering consulting services sector included: - Zhaobiao Co., Ltd. (301136) with a closing price of 12.40, up 4.03% and a trading volume of 187,100 shares [1] - Shizhou Planning (301505) with a closing price of 24.18, up 3.47% and a trading volume of 58,800 shares [1] - Tongji Technology (600846) with a closing price of 14.77, up 2.57% and a trading volume of 122,600 shares [1] - Major decliners included: - Huajian Group (600629) with a closing price of 26.86, down 9.99% and a trading volume of 1,565,000 shares [2] - Hualan Group (301027) with a closing price of 16.56, down 5.96% and a trading volume of 127,900 shares [2] - Jiankeyuan (300675) with a closing price of 18.02, down 5.61% and a trading volume of 255,700 shares [2] Capital Flow - The engineering consulting services sector saw a net outflow of 903 million yuan from institutional investors, while retail investors contributed a net inflow of 660 million yuan [2][3] - Key stocks with significant capital flow included: - Taiji Industry (600667) with a net inflow of 18.73 million yuan from institutional investors [3] - Huase Group (603018) with a net outflow of 4.67 million yuan from retail investors [3] - Zhaobiao Co., Ltd. (301136) with a net inflow of 12.23 million yuan from institutional investors [3]

Core Viewpoint - Zhongcheng Consulting is set to launch its public offering with an issue price of 14.27 yuan and an earnings ratio of 9.69 times, aiming to raise a total of 200 million yuan for various projects and working capital [1] Group 1: IPO Details - The issuance code for Zhongcheng Consulting is 920003, with a total issuance of 14 million shares and a post-issue total share capital of 64.7143 million shares [1] - The maximum subscription limit for a single account is 630,000 shares, with 12.6 million shares available for online subscription [1] - Strategic placement accounts for 1.4 million shares, representing 10% of the initial issuance size [1] Group 2: Fundraising Allocation - The total amount raised is expected to be 200 million yuan, allocated to the following projects: - Engineering consulting service network construction: 123 million yuan - R&D and information technology construction: 76.89 million yuan - EPC business expansion: 70 million yuan - Supplementing working capital: 60 million yuan [1] Group 3: Financial Performance - The company's net profit for 2022, 2023, and 2024 is projected to be 64.3581 million yuan, 81.0585 million yuan, and 105 million yuan respectively, with year-on-year growth rates of 37.60%, 25.95%, and 30.02% [1] - Financial indicators for 2022 to 2024 show significant growth in total assets, net assets, and operating income, with total assets increasing from 353.5852 million yuan in 2022 to 602.75 million yuan in 2024 [2] - The basic earnings per share are expected to rise from 1.29 yuan in 2022 to 2.08 yuan in 2024, reflecting a strong upward trend in profitability [2]

Group 1: New Stock Listings - Two new stocks were listed in the A-share market last week: Kema Polo and Chaoying Electronics, with Chaoying Electronics seeing a nearly 400% increase on its first day, yielding over 40,000 yuan in profit per subscription [1] - This week, three new stocks are available for subscription: Fengbei Biological, Delijia, and Zhongcheng Consulting, with subscription dates on Monday and Tuesday [1] Group 2: Fengbei Biological - Fengbei Biological is a leading domestic company in the comprehensive utilization of waste oil resources, focusing on the production of biofuels and biobased materials [2] - The company’s IPO price is set at 24.49 yuan per share, with a maximum subscription limit of 11,000 shares per account, requiring a market value of 110,000 yuan [1][2] - Projected revenues for 2022 to 2024 are 1.709 billion yuan, 1.728 billion yuan, and 1.949 billion yuan, with net profits of 133 million yuan, 130 million yuan, and 124 million yuan respectively [2] Group 3: Delijia - Delijia specializes in the research, production, and sales of high-speed heavy-duty precision gear transmission products, primarily for wind power generation [3] - The IPO price is set at a maximum subscription limit of 9,500 shares, requiring a market value of 95,000 yuan [3] - Projected revenues for 2022 to 2024 are 3.108 billion yuan, 4.442 billion yuan, and 3.715 billion yuan, with net profits of 540 million yuan, 634 million yuan, and 534 million yuan respectively [4] Group 4: Zhongcheng Consulting - Zhongcheng Consulting focuses on providing engineering consulting services, including cost estimation, bidding agency, project supervision, and management [5] - The IPO price is set at 14.27 yuan per share, with a maximum subscription limit of 630,000 shares [5] - Projected revenues for 2022 to 2024 are 303 million yuan, 368 million yuan, and 396 million yuan, with net profits of 64 million yuan, 81 million yuan, and 105 million yuan respectively [5][6]

Core Viewpoint - The article discusses the recent IPOs in the A-share market, highlighting the performance of newly listed companies and upcoming IPOs, emphasizing the potential investment opportunities in the waste oil resource utilization and wind power transmission sectors. Group 1: Recent IPOs - Last week, two new stocks were listed in the A-share market: Kema Polo on the Shenzhen main board and Chaoying Electronics on the Shanghai main board, with Chaoying Electronics seeing a nearly 400% increase on its first day, yielding over 40,000 yuan in profit per subscription [1]. Group 2: Upcoming IPOs - This week (October 27 to October 31), three new stocks are set for subscription: Fengbei Biological, Delijia, and Zhongcheng Consulting, with subscriptions available on Monday and Tuesday [2]. Group 3: Fengbei Biological - Fengbei Biological's issue price is 24.49 yuan per share, with a maximum subscription limit of 11,000 shares per account, requiring a market value of 110,000 yuan in the Shanghai market for full subscription [3]. - The company is a leading player in waste oil resource utilization, focusing on producing biodiesel and bio-based materials, and has developed a comprehensive industrial chain from waste oil to biofuels [4]. - Revenue projections for 2022 to 2024 are 1.709 billion yuan, 1.728 billion yuan, and 1.948 billion yuan, with net profits of 133 million yuan, 130 million yuan, and 124 million yuan respectively [4]. Group 4: Delijia - Delijia's issue price is not specified, but the maximum subscription limit is 9,500 shares, requiring a market value of 95,000 yuan for full subscription [5]. - The company specializes in high-speed heavy-duty precision gear transmission products, primarily for wind power generation, and has established a comprehensive business chain from design to production and maintenance [5]. - Revenue projections for 2022 to 2024 are 3.108 billion yuan, 4.442 billion yuan, and 3.715 billion yuan, with net profits of 540 million yuan, 634 million yuan, and 534 million yuan respectively [6]. Group 5: Zhongcheng Consulting - Zhongcheng Consulting's issue price is 14.27 yuan per share, with a maximum subscription limit of 630,000 shares [8]. - The company provides engineering consulting services, including cost estimation and project management, and has ranked among the top in Jiangsu province for engineering cost consulting revenue from 2021 to 2024 [8]. - Revenue projections for 2022 to 2024 are 303 million yuan, 368 million yuan, and 396 million yuan, with net profits of 64 million yuan, 81 million yuan, and 105 million yuan respectively [8].

Investment Rating - The report suggests a "关注" (focus) investment rating for the company [4]. Core Insights - The company specializes in engineering cost services and has a leading advantage in full-process engineering consulting and BIM+ services. It aims to enhance service capabilities and market share through strategic investments in network construction and R&D projects [2][12]. - The company has a projected compound annual growth rate (CAGR) of 31.1% for net profit from 2021 to 2024, with engineering cost services accounting for over 50% of its main business revenue [3][46]. - The company is recognized as a specialized and innovative small and medium-sized enterprise in Jiangsu Province, with a net profit margin of 26.64% expected in 2024 [14]. Summary by Sections Initial Issuance - The company plans to issue 14 million shares at a price of 14.27 CNY per share, with an earnings multiple of 8.76X. The subscription date is set for October 28, 2025 [3][6]. - The total amount raised, after deducting issuance costs, will be invested in projects aimed at enhancing engineering consulting service networks and R&D [12][13]. Company Overview - The company provides a range of professional technical services, including engineering cost, bidding agency, project supervision, BIM services, and engineering design [14][17]. - The main revenue source is engineering cost services, with a projected gross margin of 49.9% in 2024 [17][37]. - The company has established a strong presence in Jiangsu Province, with its top five clients accounting for approximately 18% of total sales in 2024 [42][43]. Industry Insights - The fixed asset investment scale in China is expanding, which is driving the growth of the engineering consulting service industry. The total investment is expected to increase from 49.32 trillion CNY in 2020 to 52.09 trillion CNY in 2024 [3][14]. - The number of engineering cost consulting firms in China has nearly doubled from 2019 to 2023, indicating a robust growth trend in the industry [3][16]. Financial Performance - The company's revenue reached 368 million CNY in 2023, with a year-on-year growth of 21.41%, and is projected to reach 396 million CNY in 2024, with a growth rate of 7.39% [46]. - The net profit for 2024 is expected to be approximately 105.39 million CNY, reflecting a year-on-year increase of 30.02% [46].

Group 1: New IPOs Overview - Three new stocks are available for subscription next week, including Fengbei Biological, Zhongcheng Consulting, and Delijia [2] - Fengbei Biological has an issuance price of 24.49 CNY per share and a P/E ratio of 30.47, significantly lower than the industry average of 64.73 [4][10] - Zhongcheng Consulting has an issuance price of 14.27 CNY per share and a P/E ratio of 9.69, compared to the industry average of 40.16 [10] Group 2: Fengbei Biological - Fengbei Biological is a leading company in the comprehensive utilization of waste oil resources, focusing on a production chain from waste oil to biofuels and biobased materials [3][4] - The company reported revenues of 1.709 billion CNY in 2022, with a slight increase to 1.728 billion CNY in 2023, and projected revenues of 1.948 billion CNY for 2024 [5] - For the first half of 2025, Fengbei Biological expects revenues between 2.1 billion CNY and 2.3 billion CNY, representing a year-on-year growth of 51.40% to 65.82% [8] Group 3: Zhongcheng Consulting - Zhongcheng Consulting is an early player in the engineering consulting sector, providing comprehensive consulting services including cost estimation and project management [11] - The company has a significant reliance on clients within Jiangsu Province, with over 96% of its revenue coming from this region from 2022 to 2025 [11] - Revenue figures for Zhongcheng Consulting show a growth from 303 million CNY in 2022 to 368 million CNY in 2023, with a projected revenue of 396 million CNY for 2024 [11] Group 4: Delijia - Delijia is a leading company in the wind power industry, specializing in the research, production, and sales of precision gear transmission products [18] - The company reported revenues of 3.108 billion CNY in 2022, with a decline to 4.442 billion CNY in 2023, and a projected revenue of 3.715 billion CNY for 2024 [18] - For the first half of 2025, Delijia expects revenues between 3.938 billion CNY and 4.073 billion CNY, indicating a year-on-year growth of 61.39% to 66.92% [20]

Summary of Upcoming IPOs - Three new stocks will be available for subscription next week, including two from the Shanghai Stock Exchange and one from the Beijing Stock Exchange [1][2] Group 1: Fengbei Biological - Fengbei Biological is a leading enterprise in the recycling of waste oil resources [3] - The issue price is 24.49 CNY per share with a price-to-earnings ratio of 30.47, compared to the industry average of 64.73 [3] - The company plans to issue 35.9 million shares, with a maximum subscription limit of 11,000 shares for online investors, requiring a market value of 110,000 CNY [3] - Fengbei's business model focuses on the comprehensive utilization of waste oil, producing biofuels and bio-based materials, with applications in agriculture and other sectors [3] - Revenue projections for 2022 to 2024 are 1.709 billion CNY, 1.728 billion CNY, and 1.948 billion CNY, with net profits of 133 million CNY, 130 million CNY, and 124 million CNY respectively [3] Group 2: Zhongcheng Consulting - Zhongcheng Consulting is a well-known engineering consulting service provider in Jiangsu [4] - The issue price is 14.27 CNY per share with a price-to-earnings ratio of 9.69 [5] - Established in 2002, the company specializes in engineering cost, bidding agency, project supervision, and management services, focusing primarily on the Jiangsu market [5] - Revenue projections for 2022 to 2024 are 303 million CNY, 368 million CNY, and 396 million CNY, with net profits of 64 million CNY, 81 million CNY, and 105 million CNY respectively [5] Group 3: Delijia - Delijia is a leading enterprise in the wind power gearbox sector [6] - The company plans to issue 40 million shares, with a maximum subscription limit of 9,500 shares for online investors, requiring a market value of 95,000 CNY [7] - Delijia focuses on the research, development, production, and sales of high-speed heavy-duty precision gear transmission products, primarily wind turbine main gearboxes [7] - Revenue projections for 2022 to 2024 are 3.108 billion CNY, 4.442 billion CNY, and 3.715 billion CNY, with net profits of 540 million CNY, 634 million CNY, and 534 million CNY respectively [7]

Company Overview - Zhongcheng Consulting is dedicated to providing professional technical services and comprehensive consulting services in engineering cost, bidding agency, engineering supervision and management, BIM services, and engineering design [1][4] - The company has been recognized as an innovative small and medium-sized enterprise in Jiangsu Province and has received multiple awards for its contributions to the industry [1][2] Market Position - Since its establishment, the company has focused on the engineering consulting service industry, ranking 5th, 3rd, 5th, and 4th in engineering cost consulting revenue in Jiangsu Province from 2021 to 2024 [2] - The company aims to expand its influence from Suzhou to the Yangtze River Delta and nationwide [2] Team and Expertise - The company has built a strong professional team with 130 first-class cost engineers, 97 first-class builders, 190 registered supervising engineers, and other qualified professionals [2] - The team has extensive project experience in various sectors, including high-rise buildings, hospitals, and urban infrastructure [2] Awards and Recognition - Projects managed by the company have received numerous awards from national ministries and industry associations, including the "Yangtze Cup" for quality engineering [3] - The company has been recognized for its innovative use of BIM technology in projects such as the Suzhou Science and Technology Museum and the Suzhou Shishan Art Theater [3] Service Model - Zhongcheng Consulting is one of the early adopters of integrated consulting services in the engineering consulting industry, providing a full range of services from cost estimation to project management [4] - The company has established a comprehensive consulting service system that enhances project quality and safety while improving efficiency and reducing costs for clients [4]

Group 1 - The company guarantees the authenticity, accuracy, and completeness of the quarterly report, and assumes legal responsibility for any false records or omissions [2][9][51] - The company has signed new contracts totaling 10.747 billion yuan, with engineering consulting business contracts increasing by 0.11% year-on-year and construction business contracts increasing by 149.57% year-on-year [6][8] Group 2 - The company has proposed to reappoint Rongcheng Accounting Firm as its auditor for the year 2025, with a one-year term [10][25] - The audit fee for the 2025 fiscal year is set at 1.1 million yuan, which includes 840,000 yuan for financial statement audits and 260,000 yuan for internal control audits [23] Group 3 - The company will hold its second extraordinary general meeting of 2025 on November 10, 2025, to discuss the reappointment of the accounting firm and other matters [35][36] - An investor performance briefing will be held on November 3, 2025, to discuss the company's third-quarter results and address investor questions [52][56]

Core Insights - The engineering consulting services sector experienced a decline of 1.61% on October 24, with Huajian Group leading the drop [1] - The Shanghai Composite Index closed at 3950.31, up 0.71%, while the Shenzhen Component Index closed at 13289.18, up 2.02% [1] Sector Performance - The engineering consulting services sector saw significant individual stock movements, with Shanshui Bide rising by 6.31% to a closing price of 56.30, and Huajian Group falling by 10.01% to 29.84 [1][2] - Other notable gainers included Taiji Industry (+4.83%), Chaoao Planning (+4.09%), and Jiaotu Kewai (+3.41%) [1] Trading Volume and Capital Flow - The sector experienced a net outflow of 409 million yuan from institutional investors, while retail investors saw a net inflow of 327 million yuan [2] - The trading volume for Huajian Group was 187,400 hands, with a total transaction value of 559 million yuan [2] Individual Stock Capital Flow - China Ruilin had a net inflow of 12.77 million yuan from institutional investors, while it faced a net outflow of 8.89 million yuan from retail investors [3] - Other stocks like Tongji Technology and Huayang International also showed varied capital flows, indicating mixed investor sentiment [3]