【Beijing Stock Exchange Observation】Beijing Stock Exchange Weekly Observation: 30 IPOs accepted in 2024H1 far exceeded Shanghai and Shenzhen, and 10 new stocks rose by more than 110% on the first day - open source 2024.6.30

30 IPOs accepted in 2024H1 far exceeded the 10 IPOs in Shanghai and Shenzhen, with an increase of more than 110% on the first day

·Guide·

Weekly topic: In 2024H1, 30 IPOs will be accepted, far exceeding those of Shanghai and Shenzhen, and the valuation of the Beijing Stock Exchange has reached 5.5% compared with the Science and Technology Innovation Board
Zhou's view: We have a more optimistic attitude towards the Beijing Stock Exchange market, and it is recommended to actively seize the plate allocation window
Market situation: The overall PE valuation of Beijing Stock Exchange A-shares fell to 19X, and the average daily turnover fell to 2.9 billion yuan
IPO status: 4 companies have been terminated, and a total of 25 IPO applications have been accepted this week

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Weekly topic: In 2024H1, 30 IPOs will be accepted, far exceeding those of Shanghai and Shenzhen, and the valuation of the Beijing Stock Exchange has reached 5.5% compared with the Science and Technology Innovation Board

From the perspective of market ups and downs, the main stock indexes of A-shares in the first half of 2024 were mixed, and the overall market value style of the market was more resilient, showing the characteristics of "the large market is better than the small market, and the value is better than the growth", the Shanghai Stock Exchange 50 Index performed the strongest in the first half of the year, and the cumulative increase was 2.95%, and the Beijing Stock Exchange A-shares mainly due to the impact of the large increase in the fourth quarter of 2023 + market style factors, the performance in the first half of 2024 was poor, and the overall decline reached 35%. From the perspective of market valuation, the overall PE of ChiNext fell from 31.82X to 27.76X, the overall PE of the Science and Technology Innovation Board fell from 39.08X to 34.77X, and the overall PE of Beijing Stock Exchange A-shares fell from 26.55X to 19X. On the whole, the discount between Beijing Stock Exchange A-shares and ChiNext and the Science and Technology Innovation Board has dropped from 8.3 discounts/6.8 discounts at the beginning of the year to 6.8 discounts/5.5 discounts at present. From the perspective of new listings, the pace of listing in the first half of 2024 will be slower, with only 10 companies listed, a decrease from 35 in the second half of 2023. The average amount of funds raised by the 10 companies is 200 million yuan, the average price-earnings ratio of the issue is 17X, the average increase on the first day is 115%, and the average revenue/net profit attributable to the parent company in 2023 is 599 million yuan/64.38 million yuan respectively. Judging from the acceptance of new shares, compared with the Shanghai and Shenzhen stock exchanges, the pace of IPO acceptance on the Beijing Stock Exchange has been significantly accelerated. This week, the Beijing Stock Exchange accepted IPO applications from 25 companies, while the Shanghai and Shenzhen Stock Exchanges did not accept any companies. In the first half of 2024, the Beijing Stock Exchange will accept a total of 30 IPO applications, while the Shanghai Stock Exchange and the Shenzhen Stock Exchange will each have one company in the same period. Judging from the portrait of the newly accepted companies in June, the average and median revenue of 28 companies in 2023 will be 578 million yuan/409 million yuan, and the average and median net profit attributable to the parent company will be 65.51 million yuan/53.65 million yuan respectively, of which 50% of the companies are specialized and new "little giant" companies, 4 companies will have a net profit of more than 100 million yuan in 2023, 12 companies will have a profit of 5000-100000 yuan, and there are no companies with a profit of less than 30 million yuan. From the perspective of the funds to be raised, Jinhua New Materials plans to raise 778 million yuan, Zhigao Machinery plans to raise 536 million yuan, and the median value of 28 companies to raise funds exceeds 250 million yuan. Zhou's view: We have a more optimistic attitude towards the Beijing Stock Exchange market, and it is recommended to actively seize the plate allocation window

With the implementation of various reform policies and the supply of high-quality companies (a total of 25 companies accepted this week) continue to be optimistic about the medium and long-term development prospects of the Beijing Stock Exchange, it is recommended to actively seize the plate allocation window period and pay attention to the specialized and special new enterprises that meet the new quality productivity, especially the "315" index companies we proposed in the interim report, that is, (1) PE is located at 10X-15X, (2) revenue growth in 2023 is at 10-15%, and (3) market value is at 10-1.5 billion yuan. In addition, some opportunities are also recommended for investors to pay attention to the large industrial cycle dimension, (1) semiconductor recovery and domestic substitution industry chain, (2) equipment renewal and industry prosperity industry chain, (3) intelligent network industry chain, (4) computing power service industry chain, (5) national defense and satellite Internet industry chain, (6) new material industry chain.

Market situation: The overall PE valuation of Beijing Stock Exchange A-shares fell to 19X, and the average daily turnover fell to 2.9 billion yuan

This week, the overall PE valuation of ChiNext, the Science and Technology Innovation Board and the Beijing Stock Exchange A-shares have all fallen, of which the overall PE of the ChiNext Board has fallen from 28.64X to 27.76X, the overall PE of the Science and Technology Innovation Board has fallen from 36.84X to 34.77X, and the overall PE of Beijing Stock Exchange A-shares has fallen from 19.58X to 19X. From the perspective of liquidity performance, the average daily turnover rate of Beijing Stock Exchange A-shares dropped to 2.94%, the average daily turnover rate of the Science and Technology Innovation Board was 2.13%, and the average daily turnover rate of ChiNext was 4.62%. In terms of indexes, the ChiNext Index, the Beijing Stock Exchange 50, the Science and Technology Innovation 50 Index and the CSI 300 Index fell this week, and the Beijing Stock Exchange 50 Index PE TTM 30X.

IPO status: 4 companies have been terminated, and a total of 25 IPO applications have been accepted this week

From June 24, 2024 to June 28, 2024, two companies, Wantai Co., Ltd. and Juxing Technology, updated their audit status to inquired; 4 companies, Escort Technology, Tianyan Weizhen, Jiahe Electric and AD Xinneng, updated their audit status to termination. This week, the Beijing Stock Exchange is now accepting a wave of IPOs, with a total of 25 companies accepted in a single week. Analyst:

诸海滨：S0790522080007

Zhao Hao: S0790522080002 report date: June 30, 2024

Risk warning: the risk of policy implementation not meeting expectations, the risk of data statistical error, and the risk of macro environment

1. Zhou's view: Talk about the situation of the Beijing Stock Exchange market in the first half of 2024

From the perspective of market ups and downs, the main A-share stock indexes in the first half of 2024 were mixed, and the overall market value style of the market was more resilient, showing the characteristics of "the large market is better than the small market, and the value is better than the growth", the Shanghai Stock Exchange 50 Index had the strongest performance in the first half of the year, with a cumulative increase of 2.95%, the CSI 300 rose by 0.89%, and the Beijing Stock Exchange A shares performed poorly in the first half of 2024 due to the impact of market style factors on the one hand, and the overall decline reached 35%.

From the perspective of market valuation, the overall PE of ChiNext fell from 31.82X to 27.76X, the overall PE of the Science and Technology Innovation Board fell from 39.08X to 34.77X, and the overall PE of BSE A-shares fell from 26.55X to 19X. On the whole, the discount between Beijing Stock Exchange A-shares and ChiNext and the Science and Technology Innovation Board has dropped from 8.3 discounts/6.8 discounts at the beginning of the year to 6.8 discounts/5.5 discounts at present.

From the perspective of the pace of new listings, the pace of listings in the first half of 2024 will be slower, with only 10 companies listed, down more from 35 in the second half of 2023.

Judging from the market performance and portrait of new listed companies, the average value of funds raised by 10 companies is 200 million yuan, the average price-earnings ratio of the issue is 17X, the average increase on the first day is 115%, and the average revenue/net profit attributable to the parent company in 2023 is 599 million yuan/64.38 million yuan respectively.

Judging from the acceptance of new shares, compared with the Shanghai and Shenzhen stock exchanges, the pace of IPO acceptance on the Beijing Stock Exchange has been significantly accelerated. This week, the Beijing Stock Exchange accepted IPO applications from 25 companies, while the Shanghai and Shenzhen Stock Exchanges did not accept any companies. In the first half of 2024, the Beijing Stock Exchange will accept a total of 30 IPO applications, while the Shanghai Stock Exchange and the Shenzhen Stock Exchange will each have one company in the same period.

Judging from the portrait of the newly accepted companies in June, the average and median revenue of 28 companies in 2023 will be 578 million yuan/409 million yuan, and the average and median net profit attributable to the parent company will be 65.51 million yuan/53.65 million yuan respectively, of which 50% of the companies are specialized and new "little giant" companies, 4 companies will have a net profit of more than 100 million yuan in 2023, 12 companies will have a profit of 5000-100000 yuan, and there are no companies with a profit of less than 30 million yuan. From the perspective of the funds to be raised, Jinhua New Materials plans to raise 778 million yuan, Zhigao Machinery plans to raise 536 million yuan, and the median value of 28 companies to raise funds exceeds 250 million yuan. In addition, including 2 companies accepted in January and March 2024, Dongang Technology and Jindayu, a total of 30 companies will be accepted in the first half of 2024.

From the perspective of investment strategy, standing at the current point in time, with the implementation of various reform policies and the supply of high-quality companies, we are optimistic about the medium and long-term development prospects of the Beijing Stock Exchange, and it is recommended to actively seize the window period of plate allocation, and we recommend paying attention to specialized and special new enterprises that meet the new quality productivity, especially the "315" index companies proposed in our interim report, that is, (1) PE is located at 10X-15X, (2) revenue growth in 2023 is at 10-15%, and (3) market value is at 10-1.5 billion yuan, These companies belong to typical representatives of growth companies, or investment opportunities in the second half of the year, such as Keqiang shares, Xinghao Pharmaceutical, Combit, Wantong Hydraulics, Li Tong Technology, Jianbang Technology, etc. In addition, some opportunities for large industrial cycle dimensions are also recommended for investors to pay attention to, first, in the semiconductor recovery and domestic substitution chain, pay attention to CapitaLand Quartz, Hualing shares, etc.; Second, in the equipment renewal and industrial boom chain, pay attention to Clete, Kekang Instruments, Tiangang Shares, etc.; Third, in the intelligent network industry chain, pay attention to Audiwell, Yishi Precision, Weimao Electronics, etc.; Fourth, in the computing power service industry chain, pay attention to parallel technology, Guangmai technology, etc.; Fifth, in the national defense and satellite Internet industry chain, pay attention to Shengnan Technology, Fuji-ta, etc.; Sixth, in the new material industry chain, pay attention to Meibang Technology, Tianli Composite, CommScope Chemical, Tianma New Materials, etc.

2. Market performance of the Beijing Stock Exchange: The overall PE valuation of Beijing Stock Exchange A-shares fell to 19X

From the perspective of liquidity performance, the average daily turnover of Beijing Stock Exchange A-shares this week (2024.6.24-2024.6.28) was 2.927 billion yuan, down 12.47% from last week. The average daily turnover rate of BSE A-shares fell this week, reaching 2.94% (-0.14pcts); The average daily turnover rate of the Science and Technology Innovation Board this week was 2.13% (-0.61pcts); The average daily turnover rate of GEM this week was 4.62% (+0.04pcts). Note: The turnover rate is the interval turnover rate (arithmetic mean).

Judging from the BSE 50 Index, the BSE 50 Index fell as a whole this week, and the BSE 50 Index PE TTM was 29.62X. Judging from the performance of several major indexes, the Science and Technology Innovation 50 rose this week, and the CSI 300 and ChiNext index fell this week. As of this week (June 28, 2024), the Beijing Stock Exchange 50 Index was reported at 708.97 points, down 2.96% from last week's closing price; The CSI 300 Index was at 3,461.66 points, down 0.97% from last week's close; The STAR 50 Index was reported at 712.08 points, down 6.10% from last week's closing price; The ChiNext index was at 1,683.43 points, down 4.13% from last week's close.

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