Core Viewpoint - Guizhou Jiesheng Drilling Tools Co., Ltd. is progressing with its IPO plans on the Beijing Stock Exchange, with guidance from Guotai Junan Securities [1][2]. Company Overview - Guizhou Jiesheng was established in May 1997 and specializes in the research, production, sales, and service of rock drilling tools, including various types of top hammer drilling tools, blast furnace opening drilling tools, and down-the-hole drilling tools [2]. Financial Performance - In 2024, Guizhou Jiesheng reported a revenue of 182 million yuan, reflecting a year-on-year increase of 3.40% - The net profit attributable to shareholders was 43.41 million yuan, marking an 18.88% year-on-year growth [3]. Shareholding Structure - The company has no controlling shareholder, with actual control held by Han Yang and Huang Xianxiao, who collectively control 81.54% of the shares - Han Yang directly holds 43.38% of the shares and indirectly controls an additional 2.30% through Guizhou Jietong Investment Partnership (Limited Partnership) - Huang Xianxiao directly holds 35.87% of the shares [3]. Key Personnel - Han Yang, born in June 1969, has held various positions in the industry, including roles at Guizhou Steel Factory and Guizhou Jiesheng, where he currently serves as Chairman and General Manager [4]. - Huang Xianxiao, born in September 1952, has extensive experience in engineering and management, previously serving as the Chairman of Guizhou Jiesheng and currently as a technical consultant [5].

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company achieved a revenue of 528 million yuan in Q1 2025, representing a year-on-year increase of 33.94%. The net profit attributable to shareholders was 46 million yuan, up 7.45% year-on-year. The growth in revenue is attributed to increased market expansion and stable growth in hard alloy and oil service products, along with the consolidation of revenue from newly acquired companies [2] - The gross margin slightly decreased to 32.02%, down 0.97 percentage points year-on-year, primarily due to changes in revenue structure and increased depreciation from ongoing projects. The net profit margin was 10.66%, down 2.01 percentage points, mainly due to rising expense ratios [3] - The company is accelerating the enhancement of its product matrix and expanding its overseas channels. It has integrated Drillco, which adds a range of drilling tools to its portfolio, and is deepening its cutting tool product layout with the acquisition of another company. The company participated in 13 international exhibitions in 2024 to boost its global presence and established a subsidiary in Dubai to enhance its sales network in the Middle East and Africa [4] Financial Summary - The company forecasts total revenue of 2,456 million yuan for 2025, with a year-on-year growth rate of 31.94%. The net profit attributable to shareholders is projected to be 225.22 million yuan, reflecting a growth rate of 24.61% [1][10] - The earnings per share (EPS) is expected to reach 1.24 yuan in 2025, with a price-to-earnings (P/E) ratio of 16.94 based on the current price [1][10] - The company’s total assets are projected to grow to 4,858 million yuan by 2026, with a debt-to-asset ratio of 35.91% [10]