A-share subscription | Weigaojing (603014.SH) opens subscription focusing on the two major tracks of hemodialysis and peritoneal dialysis

The Zhitong Finance App learned that on May 8, Weigaojing (603014.SH) began subscription. The issuance price was 26.5 yuan/share. The maximum subscription price was 11,000 shares, the price-earnings ratio was 24.82 times, and the industry's price-earnings ratio was 28.04 times. It belongs to the main board of the Shanghai Stock Exchange, and Huatai United Securities is the sponsor (lead underwriter).

According to the prospectus, Weigaojing focuses on two major tracks, hemodialysis and peritoneal dialysis, with sales of dialysis support products. It is one of the manufacturers of medical products for blood purification with the richest product line in China. The company's hemodialysis products mainly include hemodialysis devices, hemodialysis pipelines, hemodialysis machines, etc., and peritoneal dialysis products mainly include peritoneal dialysis solutions, etc.

According to Frost & Sullivan data, in 2023, the company's market share in the domestic hemodialyzer field was 32.5%, ranking first in the industry; the domestic hemodialysis pipeline market share was 31.8%, ranking first in the industry.

In terms of hemodialysis machines, the company has authorized exclusive sales of Weigaori Machinery and Nikko brand hemodialysis machines, which the company has authorized to sell exclusively, occupy a high market share in the domestic market. Currently, the rest of the market share is mainly occupied by foreign manufacturers such as Fresenius Medical and Bellan Medical. According to Frost & Sullivan data, in 2023, hemodialysis machines authorized by the company to exclusively sell accounted for 24.6% of the domestic hemodialysis machine market share, ranking second in the industry, after Fresenius Medical.

In the peritoneal dialysis market, the company cooperated with Termao, a well-known international blood purification company, to introduce world-leading technology and production management concepts for peritoneal dialysis solutions, and exclusively sold peritoneal dialysis products produced by Weigao Termo, a joint venture with Termao China in mainland China. According to Frost & Sullivan data, in 2022, the company's authorized exclusive sale of peritoneal dialysates accounted for 3.6% of the domestic market share in the domestic peritoneal dialysate field, ranking fifth in the industry.

After deducting the issuance fee, the actual funds raised in this offering are to be used for the following projects:

On the financial side, in 2022, 2023 and 2024, WeigaoClean achieved operating income of approximately RMB 3.426 billion, RMB 3,532 billion, and RMB 3.64 billion respectively; net profit was approximately RMB 315 million, RMB 442 million, and RMB 449 million respectively.

Weigaojing mentioned in the prospectus that the company has technology research and development risks. It said that the company focuses on R&D, production and sales of medical blood purification products. It needs to promptly track the cutting-edge technology and advanced product development direction of the blood purification industry, and continue to increase investment in related product research and development to maintain the company's technological competitive advantage in the same industry. If the company misjudges the direction of relevant technology, product development, and market trends, or if the technical maturity of new technologies, new products, and new processes does not meet expectations, it will adversely affect the company's technological innovation, new product development, and continuous business growth.