Single-sign profit nearly 10,000 yuan, this investment strategy is becoming increasingly certain

"May pomegranate flowers are enchanting and vibrant, while the green willows hang heavily with rain." After a brief rest during the three-day Dragon Boat Festival holiday, newcomers can once again gather momentum and aim for new opportunities. Last week, the newly listed Guqi Ruan Material's single signature yield remained around 10,000 yuan. Investors can also look forward to the new stocks that will be listed next week. Average Increase Exceeds 160% On May 29, the down jacket material manufacturer Guqi Ruan Material was listed on the Shenzhen Stock Exchange main board. Its issue price was 12.08 yuan per share, and the closing price on the first day was 32.00 yuan per share. According to statistics from Eastmoney, the average increase on the first day reached 164.90%, with a single signature earning 9,960 yuan. This figure is not outstanding in this year's new stock performance, but it is still stable and reassuring. In terms of the winning rate, 0.027216% is also considered a relatively high level in recent times. During the first day's trading, Guqi Ruan Material's stock price peaked at 39 yuan per share, with an increase of 222.85%. However, the performance the next day was poor, with a decline of over 10%. Established Nylon Manufacturer In the new week, only one new stock will be open for subscription on June 3 (Tuesday). Haiyang Technology is an established nylon manufacturer, having been in operation for over forty years, primarily engaged in the research, production, and sales of nylon 6 series products. Currently, the company's clients include well-known large domestic and international chemical, fiber, and tire enterprises such as BASF, Enka, Xiaoxing Group, and Jinfa Technology, with long-term cooperation. The prospectus also mentions that the company has been listed in the top 500 Chinese petroleum and chemical enterprises for several consecutive years, a list published by the China Petroleum and Chemical Industry Federation and the China Chemical Enterprise Management Association. The company's operating income experienced rapid growth in 2024, with the prospectus stating that the main reason was the increase in sales of major products. The sales of nylon 6 chips and polyester tire cord fabric increased by 34.36% and 101.67% year-on-year, respectively. From 2022 to 2024, the company achieved operating revenues of 4.067 billion yuan, 4.113 billion yuan, and 5.542 billion yuan, with year-on-year growth rates of 3.06%, 1.12%, and 34.76%. Net Profit Fluctuates Greatly In contrast, the company's net profit has fluctuated dramatically in recent years. In 2021, the company's net profit reached 282 million yuan, but the following year it fell sharply by 41.05% year-on-year to 167 million yuan. In 2023, it continued to decline to 140 million yuan. With the growth in revenue, in 2024, the company's net profit slightly rebounded, with a year-on-year increase of 23.69%, reaching 173 million yuan. The fluctuation in net profit is attributed to significant volatility in the company's gross profit margin. The company's gross profit margin has been declining since 2021, halving from 15.5% to only 7.42% in 2024. The prospectus explains that the main reasons are the increasing competition in the nylon industry and the instability of global economic development, which has led to fluctuations in downstream demand In 2024, some engineering plastic customers will negotiate with the issuer to further reduce the processing fees or product prices of old products. It is evident that as competition intensifies, the company's bargaining power is also affected. Overcapacity Risks It should also be noted that the prospectus indicates that over 460 million yuan will be used for capacity expansion. Although Haiyang's current capacity utilization is at saturation, given the increasingly competitive landscape of the entire industry, there may still be a risk of overcapacity. The prospectus warns that if the overall industry capacity increases significantly, leading to oversupply and vicious competition, the company will face more intense market competition. If there are significant adverse changes in the market or if the company fails to expand its market effectively, there is a risk that the new capacity cannot be absorbed. Risk Warning and Disclaimer The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investing based on this is at one's own risk