US IPO outlook | From food packaging equipment manufacturing to capital markets, KBAT.US (KBAT.US) IPO seeks new room for growth

For food processing enterprises, packaging equipment is not only related to production efficiency, but also affects food quality, shelf life and overall operating costs. In this context, manufacturing enterprises with equipment research and development, customized production and market service capabilities are expected to obtain new development opportunities in the process of industrial upgrading.

Recently, food packaging machinery company KBAT.US (KBAT.US) updated its F-1/A documents to the SEC to enter the NASDAQ capital market through an initial public offering of shares. According to the prospectus, the company plans to issue 6.25 million Class A common shares, with an initial offering price range of 4 to 5 US dollars per share.

As a manufacturing enterprise focusing on the design, manufacture and sale of customized food packaging machines, Combet has become an important participant in the field of manufacturing thermoforming vacuum packaging machines, vacuum air conditioning packaging machines and body packaging machines, and is an important participant in China's food packaging machinery overseas.

Can this food packaging machinery manufacturer from Shandong use the NASDAQ capital platform to open up new growth space in competition in the global food packaging machinery market?

Leading residual oxygen technology, steady growth in revenue and profit

The Zhitong Finance App learned that the core operator of Kangbet, Shandong Kangbet Food Packaging Machinery Co., Ltd., was founded in 2011 and has gone through more than ten years of development. Currently, the company focuses on the design, manufacture and sale of customized food packaging machines, and the products are sold to domestic and foreign customers through established sales and distribution channels.

According to the Frost & Sullivan report, Combett has an industry leading edge in controlling residual oxygen levels, and can achieve residual oxygen levels of 0.2% to 0.5%, while the Chinese industry standard is 1%. This technical indicator is directly related to the preservation effect and shelf life of food, and is a key parameter for measuring the core competitiveness of food packaging equipment.

Judging from the product structure, Combet's food packaging machinery is mainly divided into three categories: thermoforming vacuum packaging machines, vacuum packaging machines, and vacuum air conditioning packaging machines and body packaging machines. In addition, the company also sells vacuum machine parts and replacement components, forming a revenue structure with equal emphasis on whole machine sales and after-sales parts services.

In terms of application scenarios, the company's equipment can be used to package all kinds of cooked and raw food, preserved food, aquatic products, meat products, soy products, snacks, pharmaceutical products, hardware accessories and medical devices. Diversified downstream applications provide the company with a relatively balanced source of revenue.

At the beginning of 2026, the company further expanded its product line and launched a freeze-drying production line composed of freeze-dryers and auxiliary processing equipment, marking the continuous expansion of the company's technology and business layout in the field of food processing equipment.

Judging from financial performance, Combet has shown a steady growth trend in recent years. According to the latest audit data disclosed in the prospectus (as of March 31 of each year), in fiscal year 2025 and fiscal year 2026, the company achieved revenue of 12.1357 million US dollars and 136.771 million US dollars, an increase of 12.70% year on year; net profit for the same period was 1.9 million US dollars and 2.4851 million US dollars, respectively, up 28.68% year on year, and both core financial indicators achieved steady growth.

In terms of revenue composition, sales revenue from food packaging machines accounted for more than 93% of total revenue, reaching 94.7% in fiscal year 2026, and sales revenue of machine parts and replacement components accounted for about 5% to 7%. In the 2026 fiscal year, the company's revenue further increased to $136.771 million, up 12.70% year over year, continuing the good growth trend.

In terms of profitability, in fiscal year 2025, the company's return on net assets reached 32.44%, and the return on invested capital reached 64.51%, showing that the company has strong capital utilization efficiency and profitability. Furthermore, the company's effective tax rate is about 11.78%, which is at a low level, which is beneficial to the retention of net profit and shareholder returns to a certain extent.

Judging from the global layout, Combet's packaging equipment has been directly or indirectly exported to many countries and regions around the world, including the United States, Canada, Australia, Saudi Arabia, the United Arab Emirates, Indonesia, Vietnam, Thailand, South Korea, Spain, Mexico, South Africa, and Japan. However, the company's current overseas sales still account for a small share of total revenue.

Using capital markets to open up global space

Combett went public in the US. The prospectus initially submitted by the company in July 2025 plans to issue 3.8 million shares, raise about 17 million US dollars, and the market value is expected to be about 96 million US dollars. Meanwhile, the updated prospectus in June 2026 will drastically increase the issuance scale to 6.3 million shares, the fund-raising scale to about 28 million US dollars, and the market capitalization is expected to rise to about 107 million US dollars, an increase of 67%.

Among them, judging from the fund-raising arrangement, the important purpose of Combet's current IPO is to provide financial support for production equipment upgrades, R&D capacity building, and market expansion. According to the prospectus, which is estimated at the midpoint of the issue price of US$4.50 per share, the company is expected to receive about US$24.644,400 in net capital raised when the underwriter does not exercise the over-allotment rights; if the over-allotment rights are fully exercised, the estimated net amount is approximately US$285.217 million.

For machinery manufacturers, the technical level of production equipment directly affects product processing accuracy, production cycle and delivery capacity. In the future, if Combet can improve capacity utilization efficiency by updating equipment, optimizing production processes, and improving quality control, it will have the opportunity to better control unit manufacturing costs and improve the stability of product delivery when orders grow.

At the same time, the company's R&D expenses increased by 34.8% year-on-year in fiscal year 2026, and the proportion of R&D expenses in revenue also increased from 4.3% to 5.1%. If public funding can further support product design, technical testing and new product development, the company is expected to gradually enrich its product portfolio and respond more targeted to the needs of different food processing customers.

For enterprises that focus on equipment sales, product upgrades are not only related to market competitiveness, but may also affect average sales prices, gross margins, and customer repurchases. In addition, R&D projects usually have characteristics such as long investment cycles and uncertain commercialization results, so it is necessary to continuously track whether R&D results can be converted into marketable products and actual revenue.

According to the Zhitong Finance App, the company's South American sales network construction reflects the company's intention to expand overseas markets. If the company can establish more effective sales channels, after-sales service systems, and localized customer support capabilities, overseas business is expected to provide a new source of future revenue growth.

Taken together, the positive factors of Combet are its main business focus, revenue and net profit growth in the last two fiscal years, stable gross margin, and a certain degree of strategic continuity between R&D investment and fund-raising plans. The company plans to inject new development impetus into the existing business through intelligent equipment upgrading, R&D center construction, and overseas channel expansion.

Looking at the longer cycle, if it can continue to improve product competitiveness, improve operational efficiency, and gradually increase the share of overseas revenue, there is still a possibility that the scale and profitability of the business will be further enhanced.

However, for a manufacturing company that is about to enter the open capital market, what really determines long-term value is not the listing itself, but whether the capital raised can be converted into sustainable operating results after listing. Core indicators worth paying attention to in the future include whether revenue growth can continue, whether profit margins can be maintained, whether R&D investment can generate commercial returns, whether overseas business can expand, and whether the use of capital and corporate governance can remain transparent and standardized.

Therefore, Combett's current IPO is more suitable to be understood as an important point in moving from its current operating base to the next stage of development. Currently, the company has shown some profitability and willingness to expand its business, but future growth potential still needs to be verified through continuous business performance.