The company is a leading player in the energy storage business for big data and communications. We specialize in the design, R&D, manufacturing, and sales of energy storage batteries and systems. As of December 31, 2024, we have served five of the world's top ten telecom operators and equipment manufacturers, nearly 30% of the world's top 100 telecom operators and equipment manufacturers, and all five major telecom operators and equipment manufacturers in China. We serve 80% of China's top ten self-owned data center enterprises and 90% of China's top ten third-party data center enterprises. Our average service duration for our top five clients exceeds ten years.

The company began its IPO on August 18, with an offer price of HKD 14.51, 500 shares per lot, a minimum subscription of HKD 7,328.17, a market cap of HKD 6.048 billion, and an issuance volume of 58.557 million shares. It belongs to the energy storage device industry and has a greenshoe option.

The sponsors are CICC, CCB International, and Huatai Hong Kong. The first-day rise rate for projects sponsored by CICC in the past two years is 56.25%, for CCB International it is 77.77%, and for Huatai Hong Kong it is 37.5%. The overall performance of the sponsors is decent. There is only one cornerstone investor, Sanshui Venture Capital Co., Ltd., which subscribed to RMB 220 million, accounting for 28.47% of the total issuance, which is average.

According to Frost & Sullivan, the global market for energy storage batteries in communications and data centers is highly competitive. In 2024, the total new installed capacity of energy storage batteries for global communications and data center applications reached 60.4 GWh, with the top five manufacturers holding a combined market share of about 40.7%. Our group shipped 6.7 GWh, ranking first among global suppliers of energy storage batteries for communications and data centers, with a market share of 11.1%.

The company's revenue for 2022~2024 was RMB 4.072 billion, RMB 4.26 billion, and RMB 4.499 billion, respectively, with a year-on-year growth of 5.6% in 2024;net profit for 2022~2024 was RMB 281 million, RMB 385 million, and RMB 353 million, respectively, with a year-on-year decline of 8.27% in 2024, indicating a performance downturn.

At the offer price, the market cap is HKD 6.048 billion, with an issuance of HKD 850 million, representing 14.05% of the total. The cornerstone investors locked up 28.47%, leaving a free float of HKD 608 million.

This issuance adopts Mechanism B under the new Hong Kong IPO rules, with an initial public offering allocation of 10% and no clawback mechanism, but it can be reallocated to the public offering up to 15%. The current subscription multiple is 350.17x,indicating extremely high demand. There are two days left in the subscription period, and it is estimated that the final oversubscription will exceed 1,000x.

Subscription Strategy:

Shuangdeng is a leading company in the energy storage business for big data and communications, ranking first in the industry. The sponsors are CICC, CCB International, and Huatai Hong Kong, with decent overall performance. There is one cornerstone investor, subscribing to RMB 220 million, accounting for 28.47% of the total issuance, which is average. The companysaw a year-on-year decline of 8.27% in net profit in 2024, indicating a performance downturn. The free float is HKD 608 million. This issuance adopts Mechanism B under the new Hong Kong IPO rules, with an initial public offering allocation of 10% and no clawback mechanism, but it can be reallocated to the public offering up to 15%. The current subscription multiple is 350.17x, indicating extremely high demand. It is estimated that the final oversubscription will exceed 1,000x, resulting in a very low winning rate. The company's fundamentals are average, but under the new rules, the public offering can only account for up to 15% of the total. Go all-in with full margin! Focus on whether you can win the lottery first. Expected gain is over 100%!

My views are for reference only and do not constitute investment advice. The stock market is risky; invest with caution!

Follow me: Small Investor Lao Yu$SHUANGDENG(06960.HK)