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State cable testing successfully landed on the gem, with an issue price of 33.55 yuan/share

 On June 22, Shanghai National Cable Testing Co., Ltd. was successfully listed on the growth enterprise market of Shenzhen Stock Exchange, and officially landed in the A-share capital market. The securities are referred to as national cable testing for short. According to the prospectus, the actual controller of state-owned cable testing is Shanghai SASAC, with Shenneng (Group) Co., Ltd. holding 5%and Shanghai Cable Research Institute Co., Ltd. holding 85%of the shares of state-owned cable testing.

It is reported that the number of initial public offerings of guocable testing is 15million shares, accounting for no less than 25%of the company’s total share capital after the issuance. The company’s current offering price is 33.55 yuan/share. Today’s opening price is 54.00 yuan, up 60.95%at the opening.

 Innovation driven driving steady performance growth

As one of the earliest third-party cable testing service institutions with the widest product range and the strongest comprehensive strength in China, the national cable testing business originated from the testing center of Shanghai Cable Institute In 2015, with the approval of Shanghai Cable Institute, the company carried out business integration of testing resources. Its main business is the testing and inspection services of wires and cables and optical fiber cables. It has the leading cable testing service capability in China. It has more than 1200 recognized domestic and foreign judgment standards and testing method standards, covering all the current mainstream standards of wires and cables at home and abroad.

The company insists on relying on innovation driven development and continues to increase R & D investment. Through long-term independent R & D, national cable testing has mastered a number of mature inspection and testing methods and technologies, constantly consolidating and enhancing the company’s core competitiveness. In the three years from 2019 to 2021, the company’s R & D expenses were 17.5933 million yuan, 17.7738 million yuan and 18.3716 million yuan respectively, accounting for a stable proportion of operating income, far higher than the industry average, and accounting for more than 10%in 2019. As of December 31, 2021, the company has 145 R & D and technical personnel, accounting for 75.52%of the total number of employees.

It is understood that after years of research and development, national cable testing has formed a number of core technologies leading in the field of high-end, new and special cables. By the end of 2021, the company had 41 patents and participated in the formulation or revision of 44 standards, including 7 national and industrial standards led by the convener. It is a pioneer and leader in promoting the development of industrial technological innovation.

In terms of the number of customers covered, domestic well-known cable manufacturers all purchase cable inspection and testing services from the company. The”top 20 most competitive enterprises in China’s cable industry in 2020″ listed at the 2020 China wire and cable industry conference are all corporate customers. In addition, the main domestic cable users, including the State Grid, rail transit companies in major cities, aerospace engineering construction companies, etc., are also the main customers of the company.

Leading technical advantages and high-quality customer groups have also brought about considerable development of business. From 2019 to 2021, the operating revenue of state cable testing was RMB 163million, RMB 178million and RMB 219million respectively, the net profit attributable to the parent company was RMB 53.8605 million, RMB 55.6769 million and RMB 73.2147 million respectively, the comprehensive gross profit was RMB 92.3922 million, RMB 110 million and RMB 137 million respectively, and the comprehensive gross profit margin was 56.51%, 61.61%and 62.53%respectively. The major core indicators continued to grow rapidly, with strong market competitiveness and profitability.

  “Model students” in the reform and development of state-owned enterprises continue to expand the new track of industrial integration

The inspection and testing industry is a high-tech service industry, productive service industry and science and technology service industry. Inspection and testing institutions play the role of”gatekeeper” of national quality and technology, and play an important role in maintaining quality safety, accelerating technological innovation and promoting industrial transformation. Recently, the state has also clearly put forward the opinion of”accelerating the optimal layout and structural adjustment of the nature inspection and testing institutions of state-owned enterprises, promoting the strategic reorganization and professional integration of state-owned enterprises, and promoting the nature inspection and testing institutions of state-owned enterprises to become stronger, better and bigger first”. The state cable inspection has also ushered in major development opportunities, and promoted the company to enter the fast lane of high-quality development.

At the same time, focusing on the national new energy industry, smart grid, 5g communication and other strategic emerging industries, national cable testing has actively deployed R & D, and the existing R & D technological achievements have effectively promoted the integration of cable industry and emerging industries.

At present, the company has undertaken the detection and evaluation of major new energy power generation and transmission projects such as ± 160KV offshore wind power DC project of China Southern Power Grid by virtue of outstanding new energy cable detection technologies such as wind power and solar energy, and has made important contributions to the performance test, evaluation and reliable operation of new energy cables in China. The company’s photoelectric composite cable detection technology provides strong technical support for the testing services of optical fiber composite power cables, power optical cables and fittings accessories of various voltage levels, and helps accelerate the integration of cable industry industrialization and informatization.

The funds raised from the listing and issuance of national cable testing are intended to be invested in ultra-high voltage large capacity test and safety evaluation capacity-building projects, high-end equipment cable testing capacity-building projects, the establishment of a wholly-owned subsidiary in Guangdong, digital testing capacity-building projects, etc. This will further broaden the company’s testing service content, improve R & D capacity and management efficiency, meet the needs of testing service innovation, and enhance the company’s sustainable development ability and comprehensive competitiveness.

Market analysts pointed out that with the completion of the raised investment project, the company is expected to form the inspection and detection ability of wires and cables and optical fiber cables supporting emerging strategic industries such as ultra-high voltage and ultra-high voltage projects, new energy, smart grid, rail transit, large aircraft, 5g network and industrial Internet. At the same time, on the premise of consolidating and giving full play to the existing competitive advantages, the company has improved its internal operation efficiency and laid a good foundation for its sustainable development by continuously exploring the market and establishing a digital management platform.

National cable inspection is the third-party inspection and service organization for wires and cables. The main business scope includes:detection, calibration, inspection, capability verification provision, 3C certification and production license detection, engineering application technology services, standardization services, etc. It is listed on the growth enterprise market of Shenzhen Stock Exchange today. The company’s stock code is 301289, the issue price is 33.55 yuan/share, and the issue price earnings ratio is 28.5 times.