Core Viewpoint - Guangdong Institute of Building Science Group Co., Ltd. has received approval for its initial public offering (IPO) of RMB ordinary shares (A-shares) and plans to list on the ChiNext board, with a total issuance of 10.466 million shares, accounting for 25% of the post-issue total share capital [1] Pricing and Valuation - The issue price is set at RMB 6.56 per share, resulting in a diluted price-to-earnings (P/E) ratio of 26.48 times based on the lower of the net profit attributable to the parent company for 2024, excluding non-recurring gains and losses. This is lower than the industry average static P/E ratio of 36.57 times and the arithmetic mean of 34.86 times for comparable listed companies [2][10] - The company emphasizes the importance of investors assessing the reasonableness of the issue price and making informed investment decisions [2][10] Issuance Process - The issuance will follow the regulations set forth by the China Securities Regulatory Commission and the Shenzhen Stock Exchange, including specific guidelines for the issuance and underwriting process [3] - The initial strategic placement will involve 31.398 million shares, representing 30% of the total issuance, with no need for a reallocation to the offline issuance [6][7] Competitive Advantages - The company possesses significant technological advantages, having led the compilation of numerous national and industry standards, and holds 556 patents and 415 software copyrights, showcasing its strong innovation capabilities [10][11] - The company is recognized as a leading institution in engineering inspection and testing, with comprehensive qualifications and certifications, including the first green building product certification in South China [13][14] - The workforce consists of 1,797 employees, including experts with special government allowances and a high percentage of personnel with advanced degrees, highlighting the company's talent advantage [15]

Investment Rating - The report assigns a rating of "Neutral" to the company based on its AHP score of 1.92, which places it in the 25.9% percentile of the non-innovation system AHP model [2][7]. Core Insights - Guangdong Jianke is a comprehensive testing and inspection service provider in the Guangdong province, with a strong market position and a focus on large-scale engineering projects [2][9]. - The company has a diversified service portfolio, including construction, municipal, transportation, water conservancy, energy conservation, and safety production, with over 70% of its revenue coming from the construction and municipal sector [9][10]. - The company has established itself as a leader in engineering testing and green building material certification, holding numerous qualifications and certifications, including the first green building quality inspection center in South China [9][10]. - The demand for testing services is expected to grow significantly due to the ongoing construction in the Guangdong-Hong Kong-Macao Greater Bay Area and the increasing complexity of construction projects [15][16]. - The company is expanding its operations beyond Guangdong, targeting markets in Hainan and Yunnan, and is well-positioned to benefit from the industry's consolidation trend [15][17]. Summary by Sections AHP Score and Expected Allocation - The AHP score for Guangdong Jianke, after excluding liquidity premium factors, is 1.92, indicating a mid-to-low tier position in the market [7][8]. - Expected allocation ratios for offline investors are 0.0252% for Class A and 0.0225% for Class B under neutral conditions [8]. Company Fundamentals and Highlights - Guangdong Jianke is recognized for its comprehensive service capabilities in large-scale engineering testing and has received various accolades for its contributions to the industry [10][12]. - The company has developed advanced technologies and equipment, including 3D laser detection technology and the first domestic 5G intelligent detection vehicle [10][12]. Comparable Company Financial Metrics - From 2022 to 2024, Guangdong Jianke's revenue and net profit growth rates are modest, with compound annual growth rates (CAGR) of 5.67% and 2.23%, respectively [19][23]. - The company's gross margin remains stable and above the average of comparable companies, with rates of 48.59%, 47.44%, and 48.28% from 2022 to 2024 [23][24]. - Operating cash flow has improved significantly, with net cash flow of -0.19 million, 0.40 million, and 1.24 million from 2022 to 2024 [26][29]. Fundraising Projects and Development Vision - The company plans to raise funds for the construction of an innovation technology research headquarters and the establishment of a testing and marketing service network [34][35]. - The expected internal rate of return for the innovation technology research headquarters project is 10.59%, while the testing and marketing service network project is projected at 19.92% [35].