Market Overview - The A-share market experienced an overall decline on November 7, with major indices showing varying degrees of decrease. The Shanghai Composite Index fell by 0.16% but maintained above the 4000-point mark [2][3] - The Hong Kong stock market also saw a decline, with the Hang Seng Index dropping over 1% and the Hang Seng Tech Index falling more than 2% [12][13] A-share Market Highlights - The basic chemical sector emerged as a significant highlight in the A-share market, with the sector's index rising over 2%. Multiple stocks within this sector hit the daily limit up [2][3] - Notable stocks in the basic chemical sector included Dongyue Silicon Material, Zhuoyue New Energy, and Haineng Technology, all reaching the 20% limit up. Kaisheng New Materials rose by 11.41% [3][4] New Stock Listings - Two new stocks, Zhongcheng Consulting and Delijia, debuted on the A-share market, both experiencing significant gains. Zhongcheng Consulting saw a peak increase of over 200% during trading [6][10] - Delijia, which specializes in high-load precision gear transmission products primarily for wind power applications, also recorded a peak increase of over 100% [10][11] Hong Kong Market Highlights - In the Hong Kong market, stocks such as Kuaishou-W, New Oriental-S, and Pop Mart saw significant declines, while Xinyi Solar and Hang Lung Properties led the gains [12][13] - Sanhe Construction Group experienced a dramatic rise, with its stock price increasing by over 120% during trading, attributed to a positive profit forecast indicating a projected profit of at least HKD 40 million for the upcoming six months, a substantial increase from HKD 3 million in the same period last year [13][14]

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].

Core Viewpoint - The article discusses the recent IPO activities in the Chinese stock market, highlighting the significance of the subscription process and the expected performance of new stocks, particularly focusing on Dana Biotechnology and Zhongcheng Consulting. Group 1: IPO Performance - Dana Biotechnology's subscription is noted to be relatively easy but significant, with results expected to provide important reference for future subscriptions, especially for fractional shares [1] - Marco Polo's stock debuted with a significant opening increase of 140.73%, closing with a rise of 128.80% at 31.46 yuan, with a total trading volume of 75.7042 million shares and a turnover of 2.582 billion yuan, indicating a high turnover rate of 77.36% [1] - A single subscription for Marco Polo could yield a profit of 8,855 yuan [1] Group 2: Upcoming IPOs and Subscription Details - Dapeng Industrial, a leading manufacturer in precision cleaning equipment, is set to raise approximately 129 million yuan through its IPO [1] - Zhongcheng Consulting is expected to issue up to 14 million shares, with around 12.6 million shares available for online subscription after accounting for a 10% reduction [4] - The estimated subscription amount for Zhongcheng Consulting is projected to be between 720 billion to 730 billion yuan, indicating a high demand for shares [5] Group 3: Subscription Requirements - The top subscription limit for Zhongcheng Consulting is estimated at approximately 900.9 million yuan, with a minimum funding requirement of around 579.37 million yuan for the shares [5] - The competition for fractional shares in Zhongcheng Consulting is expected to be intense, with a minimum funding threshold likely starting at 600 million yuan, potentially reaching 650 million yuan [5]

Core Viewpoint - Zhongcheng Zhixin Engineering Consulting Group Co., Ltd. is preparing for its initial public offering (IPO) on the Beijing Stock Exchange, with stock issuance expected to start in late October 2023 after receiving approval from the China Securities Regulatory Commission [1][3]. Financial Performance - The company's revenue for 2022, 2023, and 2024 is projected to be approximately CNY 303 million, CNY 368 million, and CNY 396 million, respectively, with a compound annual growth rate (CAGR) of 14.19%, which is below peers like Qingju Technology and Guoyi Tender [5][6]. - The net profit attributable to shareholders for the same years is expected to be CNY 64 million, CNY 81 million, and CNY 105 million, respectively, with a CAGR of 27.97%, ranking second among peers [5][6]. - However, in 2025, the company anticipates a revenue decline of 3.04% to CNY 384 million and a net profit decrease of 4.14% to CNY 101 million, marking the first annual revenue drop since its listing on the New Third Board in 2016 [11][12]. Business Structure and Risks - The company relies heavily on the Jiangsu province for its revenue, with over 96% of its income coming from this region, and more than 81% from Suzhou alone, indicating a significant concentration risk [14]. - The engineering cost consulting segment contributes over 53% of total revenue, but the tender agency business saw a 34.67% decline in 2024 [14]. Order and Revenue Trends - In the first nine months of 2025, the company reported a 13.85% year-on-year decrease in new orders, totaling CNY 196 million [10]. - The expected revenue for the first three quarters of 2025 is projected to decline by 2.56% to 6.17% compared to the previous year [8][9]. Related Party Transactions - The company has faced scrutiny over related party transactions, with significant overlaps between major clients and shareholders, raising concerns about the fairness of these transactions [15][16]. - The top five clients accounted for 23.47% of sales in 2025, with a notable relationship between the company and Suzhou High-tech Group, which has raised regulatory concerns [15][16]. Fundraising and Regulatory Challenges - The initial fundraising target was CNY 330 million, which has been reduced to CNY 200 million due to regulatory inquiries regarding the necessity and rationality of the proposed projects [22][24]. - The company has faced three rounds of inquiries from the Beijing Stock Exchange, which have highlighted compliance issues and led to a significant reduction in the planned fundraising amount [22][24].

Core Viewpoint - Zhongcheng Zhixin Engineering Consulting Group Co., Ltd. has been approved for IPO by the Beijing Stock Exchange, marking it as the 38th company to pass the review this year, with a focus on providing comprehensive engineering consulting services [1]. Company Overview - Zhongcheng Consulting aims to offer professional technical services including engineering cost, bidding agency, project supervision and management, BIM services, and engineering design [1]. - The company is controlled by Xu Xuele and Lu Jun, with Xu holding a direct stake of 57.40% and an indirect stake of 29.58%, giving them a total voting power of 86.98% [1]. IPO Details - The company plans to publicly issue up to 14 million shares, with an option for an additional 2.1 million shares through an over-allotment option, bringing the total potential issuance to 16.1 million shares [2]. - The funds raised, totaling approximately 199.9 million yuan, will be allocated to projects for building an engineering consulting service network and for research and information technology development [2]. Review Opinions - The review committee has requested the issuer to clarify the authenticity of sales returns from real estate clients and the adequacy of bad debt provisions for accounts receivable [3]. - The committee also inquired about the compliance and innovation of the information system procurement process and the necessity of the information technology construction project [4]. Market Position and Performance - The issuer is required to explain the market potential for its comprehensive consulting and EPC (Engineering, Procurement, and Construction) services, as well as the reasons for performance volatility compared to peers [4].

Core Viewpoint - Zhongcheng Zhixin Engineering Consulting Group Co., Ltd. has received approval for its initial public offering (IPO) on the Beijing Stock Exchange, aiming to raise funds for various projects including engineering consulting service network construction and business expansion [1] Financial Performance - The company reported revenues of 303 million yuan, 368 million yuan, and 396 million yuan for the years 2022, 2023, and 2024 respectively, indicating a revenue growth of 7.39% in 2024 [1] - Net profits for the same years were 64.36 million yuan, 81.06 million yuan, and 105 million yuan, showing a significant increase of 30.02% in 2024 [1] - Key financial metrics for 2024 include: - Revenue: 39.56 million yuan - Net profit attributable to shareholders: 10.54 million yuan - Basic earnings per share: 2.08 yuan - Weighted average return on equity: 33.87% [1]

Group 1 - Four companies are set to present their IPO applications at the upcoming listing committee meetings [1] - Among the companies, Fengbei Biological is expected to raise the most funds, with a target of 750 million yuan for projects including the construction of a 300,000-ton oil acid methyl ester plant and various agricultural microbial products [2][4] - The other companies include Jieke Co., which aims to raise 676 million yuan, Nant Technology with a target of 286 million yuan, and Zhongcheng Consulting planning to raise 200 million yuan [2][6] Group 2 - Fengbei Biological focuses on the comprehensive utilization of waste oil resources and chemical products [4] - Jieke Co. specializes in the research, production, and sales of collaborative robot products, as well as automation system integration [5] - Zhongcheng Consulting provides professional technical services including engineering cost, bidding agency, and project management [6] - Nant Technology is engaged in the research, production, and sales of precision mechanical components [7]