A-share subscription | Rubber track products supplier Yuanchuang (001325.SZ) opens subscription for products used in agriculture production, engineering construction, and other fields.

On December 9th, YuanChuang Stock (001325.SZ) started its subscription, with an issuance price of 24.75 yuan per share and a subscription limit of 19,500 shares. The price-earnings ratio is 12.93 times, and it belongs to the Shenzhen Stock Exchange, with Guotai Haitong as its sponsor. According to the prospectus, YuanChuang Stock's main business is research, production, and sales of rubber tracks, including agricultural machinery rubber tracks, engineering machinery rubber tracks, and rubber track pads. These products are used as walking parts for various tracked agricultural or engineering machinery such as combine harvesters, excavators, loaders, and pavers, ultimately applied in different fields such as agriculture and engineering construction. Over the years, the company has established long-term, good, and stable business relationships with well-known large agricultural/engineering machinery manufacturers and high-quality traders both domestically and internationally including Wode Agricultural Machinery,Weichai Lovol, Sany Heavy Industry, XCMG Construction Machinery, Zoomlion Heavy Industry, and Yangma Group, to name a few. The company has established a global sales network in major countries in Asia, Europe, North America, Oceania, South America, and Africa. Data shows that the global non-tire rubber products industry is on the rise, with the total sales of the top 50 global non-tire rubber products increasing from $68.338 billion in 2016 to $84.828 billion in 2024, with a compound annual growth rate of 2.74%. According to the International Rubber Study Group (IRSG), global rubber demand is expected to achieve an average growth rate of 2.3% between 2023 and 2030. In terms of the engineering machinery rubber track market, with many years of urbanization and modernization in China, the urbanization rate has reached over 65%, providing vast opportunities and market prospects for the development of engineering machinery. According to statistics from the China Construction Machinery Industry Association, the operating income of the construction machinery industry in China is expected to experience an overall growth trend, with a compound annual growth rate of 6.88% from 2016 to 2024. Looking at the agricultural machinery rubber track market, in recent years, the mechanized area in the three major stages of agricultural production in China has been increasing, leading to a continuous increase in demand for agricultural machinery. It is projected that by 2023 compared to 2016, the compound growth rates of mechanized sowing area, mechanized planting area, and mechanized harvesting area in China will be 1.10%, 3.17%, and 3.42%, respectively. Financially, in 2022, 2023, and 2024, the company achieved operating income of approximately 1.261 billion yuan, 1.141 billion yuan, and 1.349 billion yuan, respectively; and net profits of approximately 139 million yuan, 178 million yuan, and 155 million yuan, respectively.