A-share subscription | Tinfulong opens subscription, recycled polyester staple fiber production ranks second in the industry

According to Zhitong Finance APP, on July 28, Tinfulong (603406.SH) opened for subscription, with an issue price of 23.6 yuan per share, a subscription limit of 10,500 shares, a price-to-earnings ratio of 20.93 times, and an industry price-to-earnings ratio of 32.3. It is listed on the Shanghai Stock Exchange's main board, with CITIC Securities as the sponsor. The prospectus shows that Tinfulong's main business is the research, production, and sales of differentiated polyester staple fibers, with product layout expanding from recycled colored polyester staple fibers to differentiated composite fibers and new polyester materials, covering scenarios centered around "people" such as business, travel, home, healthcare, and clothing. Differentiated composite fibers have characteristics such as high performance and recyclability. Their series of products can replace traditional adhesives for material bonding and enhance comfort and safety in healthcare products, creating a healthy and green living experience for end consumers. Tinfulong's differentiated composite fiber products are divided into four categories: low-melting-point staple fibers, polyolefin composite staple fibers, hot-melt filaments, and hollow polyester staple fibers, mainly applied in fields such as household textiles, automotive interiors, construction engineering, footwear and clothing materials, healthcare, and filtration materials. During the reporting period, the composition of the company's main business revenue is as follows: The domestic polyester staple fiber industry has a high concentration. By the end of 2023, the top four companies in the domestic polyester staple fiber industry accounted for approximately 43% of the total capacity, initially forming an industry pattern dominated by large enterprises supplemented by several small and medium-sized enterprises. In the field of virgin polyester staple fibers, it is mainly dominated by large petrochemical companies, with the company ranking ninth in production; in the field of recycled polyester staple fibers, the company ranks second in production. According to statistics from the China Chemical Fiber Industry Association, from 2021 to 2023, the company's sales of colored polyester staple fibers and low-melting-point staple fibers for automotive interiors ranked first in the domestic market. The funds raised this time will mainly be used for the following projects: In terms of finance, for the fiscal years 2022, 2023, and 2024, Tinfulong achieved operating revenues of approximately 2.576 billion yuan, 3.336 billion yuan, and 3.841 billion yuan respectively; during the same period, net profits were approximately 358 million yuan, 431 million yuan, and 454 million yuan respectively. Tinfulong's prospectus indicates that the company faces market competition risks. As the downstream application fields of its products continue to expand, the demand for polyester staple fiber in the domestic market is steadily increasing, and major domestic manufacturers are investing resources in related product research and development and capacity expansion. In recent years, peers in the industry have actively invested in building new production lines to expand capacity, leading to increasingly fierce competition in the industry. If the company fails to keep pace with industry development trends, continuously grasp customer needs, develop high-performance differentiated composite fiber products, and persistently promote product differentiation layout, it may adversely affect the company's ability to maintain and increase its market share and sustain profitability