A-share subscription | Tianfulong (603406.SH) opens its subscription, with the production of recycled polyester short fibers ranking second in the industry.

On July 28th, Tianfulong (603406.SH) started its IPO with an issue price of 23.6 yuan per share and a maximum subscription limit of 10,500 shares. The P/E ratio is 20.93 times, the industry P/E ratio is 32.3, and it belongs to the main board of the Shanghai Stock Exchange, with China Securities Co., Ltd. as the sponsor. The prospectus shows that Tianfulong's main business is the research, production, and sales of differentiated polyester short fibers, with product layout ranging from recycled colored polyester short fibers to differentiated composite fibers and polyester new materials, covering scenarios such as business, travel, home, health care, and clothing with "people" as the core. Differentiated composite fibers have characteristics such as high performance and recyclability. Their products can replace traditional adhesives for material bonding and improve comfort and safety in health care products, creating a healthy and green living experience for end consumers. Tianfulong's differentiated composite fiber products are divided into four major categories: low melting point short fibers, polyolefin composite short fibers, hot melt filaments, and hollow polyester short fibers, mainly used in household textiles, automotive interiors, construction engineering, footwear materials, health care, and filtration materials. During the reporting period, the revenue composition of the company's main business is as follows: The concentration of the domestic polyester short fiber industry is relatively high. By the end of 2023, the production capacity of the top four enterprises in the domestic polyester short fiber industry accounted for approximately 43% of the total, forming a pattern led by large enterprises with some medium and small enterprises as supplementary. Differentiated by raw material type, in the field of virgin polyester short fibers, large petrochemical companies are the main players, with the company ranking ninth in production volume; in the field of recycled polyester short fibers, the company ranks second in production volume. According to statistics from the China National Chemical Engineering Fibers Industry Association, from 2021 to 2023, the company's sales of colored polyester short fibers for automotive interiors and low melting point short fibers ranked first in the domestic market. The funds raised this time will mainly be used for the following projects: Financially, in 2022, 2023, and 2024, Tianfulong achieved operating income of approximately 2.576 billion yuan, 3.336 billion yuan, and 3.841 billion yuan, respectively; with net profits of approximately 358 million yuan, 431 million yuan, and 454 million yuan, respectively, for the same periods. In the prospectus, Tianfulong warned of market competition risks. With the continuous expansion of downstream application fields, the demand for domestic polyester short fibers continues to rise, and major domestic manufacturers are investing resources in related product research and development and expanding capacity. In recent years, industry peers have actively expanded production capacity by investing in new production lines, leading to increasingly fierce industry competition. If the company fails to keep up with industry trends, grasp customer needs, develop high-performance differentiated composite fiber products, and continue to promote the company's product differentiation strategy, it may have a certain negative impact on the company's ability to maintain and increase market share and sustainable profitability.