The profitability of new stocks has returned.
Although the performance of Zhongce Rubber on its first day of listing two weeks ago was only a single-digit increase, which made investors a bit worried about new stock subscriptions.
But this should just be a minor episode.
In the past week, the new stock market has been filled with &#34;good news&#34;: &#34;super large meat sign&#34; — Insta360, has achieved the highest single-sign profit of the year.
The other new stocks also performed steadily, with first-day increases exceeding 250%.
Next week, another new stock will open for subscription; will it still be a good opportunity?
<h2>&#34;First Stock of Intelligent Imaging&#34; Lives Up to Expectations</h2>
On June 11, the &#34;first stock of intelligent imaging&#34; in the A-share market — Insta360, officially landed on the Sci-Tech Innovation Board.
The performance of this new stock on its first day indeed lived up to expectations, directly breaking the record for single-sign profits this year.
According to statistics from Eastmoney, the average price increase on the first day of Insta360 was 271.48%, with a profit of 64,165 yuan for one sign, narrowly defeating the silicon power company listed at the end of March.
It is worth mentioning that this high-yield new stock had a relatively high winning rate this year. Excluding new stocks listed on the Beijing Stock Exchange, the winning rate of 0.035539% ranks third highest this year.
Not only is the profit high, but the chance of winning is also relatively large. I wonder if new stock investors have seized this opportunity?
Insta360's issue price was 47.27 yuan/share, and the closing price on the first day was 172.50 yuan/share, with the market value at one point reaching 70 billion.
According to Sullivan data, in 2023, the company's brand &#34;Insta360&#34; has a global market share of 67.2% in panoramic cameras, ranking first.
<h2>Intraday High Increase Exceeds 500%</h2>
Including Insta360, three new stocks were listed this week. According to statistics from Eastmoney, the average price increase on the first day exceeded 250%, performing quite well.
The established nylon manufacturer Haiyang Technology was listed on the Shanghai Stock Exchange main board on June 12, with an increase of 255.38% and a single-sign profit of 14,685 yuan.
However, based on the intraday highest price, Haiyang Technology's increase once reached 508.43%. After the afternoon close, the increase narrowed to 386.70%, closing at 55.97 yuan/share, with a market value of 10.1 billion.
In terms of winning rate, 0.03015% is also considered a medium to high level recently.
In addition, Jiaotong University Tifa, engaged in the research, production, and sales of rail transit infrastructure, landed on the Beijing Stock Exchange on June 10, with an increase of 272.19%.
<h2>State Grid Supplier</h2>
As of now, only one new stock will open for subscription next week, scheduled for Friday (June 20). However, this company is a supplier to the State Grid, which is still noteworthy.
Xintong Electronics plans to list on the Shenzhen Stock Exchange main board, mainly providing industrial IoT smart terminals and system solutions related to operation and maintenance in specific industries such as electricity and telecommunications.
The company's main clients include State Grid, Southern Power Grid, and telecommunications operators such as China Unicom, China Mobile, and China Telecom
The prospectus shows that from 2022 to 2024, the sales revenue from the State Grid and its subsidiaries accounted for 31.66%, 32.35%, and 47.30% of its operating income, respectively, indicating an increase in customer concentration.
According to the prospectus, by the end of 2024, the company's expected market share in integrated operation and maintenance intelligent terminals for communications is approximately 40% to 50%, with an expected first place ranking in the segmented market; in the intelligent inspection industry for transmission lines, the expected market share ranks second in the segmented industry.
From 2022 to 2024, the company achieved operating revenues of 782 million yuan, 931 million yuan, and 1.005 billion yuan, with year-on-year growth rates of 27.04%, 19.08%, and 7.97%; the net profit attributable to the parent company was 117 million yuan, 124 million yuan, and 143 million yuan, with year-on-year growth rates of 10.66%, 5.69%, and 15.11%.
<h2>Risk of Declining Gross Margin</h2>
However, Xintong Electronics also faces some risks that investors need to pay attention to.
From 2022 to 2024, the company's sales gross margin was 37.21%, 32.99%, and 33.03%, respectively. Although there is a slight recovery in 2024, it still shows a significant decline compared to previous years. In 2018, the company's sales gross margin reached as high as 45.36%.
The prospectus also warns that if the grid company reduces the bidding scale, restricts bidding prices, or if new competitors enter the market, it will lead to intensified market competition for the company's related products, resulting in a downward trend in product sales prices, which will affect the company's gross margin level to some extent.
On the other hand, the company's profitability currently relies heavily on tax incentives.
From 2022 to 2024, the total tax incentives for Xintong Electronics accounted for over 30% of the net profit margin during the period, with a slight upward trend.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/dd9b7cff-caa3-4097-99a7-d4015a96d9fb.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/dd9b7cff-caa3-4097-99a7-d4015a96d9fb.png"/>
However, the prospectus believes that these tax incentives have national, long-term, and sustainable characteristics, and will not have a significant adverse impact on the issuer's continued profitability.
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 goals, financial conditions, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at their own risk

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The recent performance of the new stock market has been strong, with Insta360 Innovation becoming the new stock with the highest single-sign profit of the year, with a first-day increase of 271.48%, allowing a profit of 64,165 yuan for those who were allocated shares. Other new stocks also performed well, with increases exceeding 250%. Haiyang Technology's first-day increase reached 255.38%, with an intraday high increase of 508.43%. Overall, new stock investors are facing opportunities for high returns and allocation rates

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