A-share subscription | HCRT opens subscription focusing on smart distribution equipment and digitalization of distribution networks

According to Zhitong Finance APP, on September 11, HCRT (301668.SZ) opened for subscription, with an issue price of 21 yuan per share, a subscription limit of 6,500 shares, and a price-to-earnings ratio of 21.02 times. It is listed on the Shenzhen Stock Exchange, with Changjiang Securities as its sponsor.

The prospectus reveals that HCRT is a high-tech enterprise focused on intelligent distribution equipment and digital solutions for distribution networks, mainly engaged in the research, production, and sales of intelligent distribution equipment, with main products including intelligent ring main units, intelligent pole-mounted switches, and box-type substations.

According to the "China Power Industry Annual Development Report 2024," the total investment amount in China's power grid reached 527.7 billion yuan in 2023, a year-on-year increase of 5.4%, with 292 billion yuan invested in distribution networks, accounting for 55.33%. According to data from the National Energy Administration, the investment amount in power grid engineering is expected to reach 608.3 billion yuan in 2024, a year-on-year increase of 15.3%.

According to MARKETSANDMARKETS data, the global smart grid market size was USD 43.1 billion in 2021 and is expected to reach USD 103.4 billion by 2026, with a compound annual growth rate of 19.1%. The distribution segment is expected to account for the largest share of the smart grid market.

With the continuous advancement of power grid construction and improvement in China, total investment in the power grid remains high, and total investment in intelligence is generally stable, while investment in intelligent distribution continues to grow, with an increasing proportion of total intelligent investment.

Currently, the company's main intelligent distribution equipment includes intelligent ring main units, intelligent pole-mounted switches, and box-type substations, with major customers being enterprises under the State Grid. The State Grid is one of the main users of distribution equipment in China and is also a leader in the construction of smart grids and new power systems in the country, with strict requirements for the quality and technical content of distribution equipment products. Therefore, the market demand for related products from the State Grid can reflect the market development situation of intelligent distribution equipment products to a certain extent.

In terms of finance, for the fiscal years 2022, 2023, and 2024, the company achieved operating revenues of approximately 560 million yuan, 672 million yuan, and 867 million yuan, respectively, with net profits of approximately 68.76 million yuan, 87.41 million yuan, and 111 million yuan.