HK IPO Subscription: Meilian Shares & Xunce Analysis
One
Meilian Co., Ltd. is a comprehensive prefabricated steel structure construction subcontracting service provider. The company provides integrated services for construction projects across various industries, covering project design and optimization, procurement, manufacturing, and installation. Based on 2024 revenue, the company ranks third in China's prefabricated steel structure construction market in the industrial sector, with a market share of 3.5%. The top two players hold 35.8% and 6.5%, respectively.
IPO information is shown in the figure:
Meilian Co., Ltd. is offering 24.6 million shares globally, with 300 shares per lot. The IPO price range is HKD 7.10-9.16, with an entry fee of HKD 2,775.71. The issuance ratio is 20.41%, raising HKD 175-225 million. The margin financing multiple is 57.45x, with a total of 4,100 lots. Group A will likely be allocated via lottery, while Group B funds have mostly gone to Yingshi and Lin Qingxuan, so few are likely to subscribe to Meilian.
The company's revenue for 2022-2024 was RMB 1.902 billion, RMB 1.453 billion, and RMB 1.523 billion, respectively. H1 2025 revenue was RMB 1.424 billion, up 179.22% YoY from RMB 510 million in H1 2024.
Gross profit for 2022-2024 was RMB 243 million, RMB 215 million, and RMB 190 million, respectively. H1 2025 gross profit was RMB 145 million, up 140.4% YoY from RMB 60.427 million in H1 2024.
Net profit for 2022-2024 was RMB 87.706 million, RMB 62.132 million, and RMB 70.783 million, respectively. H1 2025 net profit was RMB 62.629 million, up 360.2% YoY from RMB 13.609 million in H1 2024.
The company's operating cash flow turned positive, with year-end cash and cash equivalents increasing annually. In 2024, cash and cash equivalents were RMB 110 million, and in H1 2025, they were RMB 177 million, up RMB 20 million from RMB 150 million in H1 2024, indicating steady improvement in overall cash flow.
Multiple rounds of capital injection and transfers were completed before the IPO. The last equity transfer was completed in June 2022 at a cost of RMB 6.75 per share, an 8.7% discount to the IPO price. The lock-up period is one year.
Cornerstone investors subscribed to a total of HKD 51.5 million, accounting for 25.8% of the offering, with a six-month lock-up. Shenwan Hongyuan is the sole sponsor and stabilizing agent. Shenwan Hongyuan's recent projects have been quite volatile.
In terms of the industry, China's prefabricated steel structure construction market grew rapidly from RMB 335.2 billion in 2020 to RMB 441.3 billion in 2024, with a CAGR of 7.1%. The industrial construction segment's market size was RMB 223.9 billion, accounting for 50.7% of the total market, with a CAGR of 13% from 2020-2024, outperforming other sectors. The prefabricated steel structure construction market is expected to grow from RMB 448.8 billion in 2025 to RMB 551.5 billion in 2029, with a CAGR of 5.3%, while the industrial construction segment's CAGR will reach 9.4%, significantly outperforming other segments.
According to the prospectus, in the 2024 ranking of China's industrial prefabricated steel structure construction subcontracting service providers, Meilian Co., Ltd. ranked third, while Jinggong Steel ranked first, with a market share and revenue exactly ten times that of Meilian. Jinggong Steel is an A-share listed company with a total market cap of RMB 8.597 billion, 2024 revenue of RMB 18.492 billion, net profit of RMB 512 million, H1 2025 revenue of RMB 9.911 billion, net profit of RMB 350 million, revenue growth of 29.48%, YoY net profit growth of 28.06%, static P/E of 16.8x, and TTM P/E of 13.74x.
Meilian Co., Ltd. has an issuance market cap of RMB 1.104 billion, static P/E of 14.11x, and TTM P/E of 8.36x. Compared to the industry leader, the valuation is not expensive, but industry leaders naturally command higher valuations. The company's strong growth in 2025 will be a major attraction, although it is still a traditional industry. It has more imagination than Dahongpao, but the issuance ratio is also as high as 20.41% (Dahongpao: 25.04%).
Unlike Dahongpao, Meilian has cornerstone investors this time, and its 2025 performance has seen explosive growth. With only 4,100 lots, it is the IPO with the fewest lots in this batch. Shenwan Hongyuan as the sponsor is also a highlight. It's worth participating to some extent, as there's no guarantee of allocation. If allocated, then consider how to cut losses or sell.
Two
Xunce is a real-time data infrastructure and analytics solutions provider in China. In 2024, China's real-time data infrastructure and analytics market was valued at RMB 18.7 billion, accounting for 4.5% of China's data infrastructure and analytics market. By revenue, the company ranked fourth in the segment, with a 3.4% market share. In 2024, China's asset management accounted for 11.2% of the real-time data infrastructure and analytics market. By 2024 revenue, the company ranked first in the industry, with an 11.6% market share.
IPO information:
Xunce is offering 22.5 million shares globally, with 100 shares per lot. The IPO price range is HKD 48-55, with an entry fee of HKD 5,555.47. The issuance ratio is 6.98%, raising HKD 1.08-1.238 billion. There are 11,250 lots each for Groups A and B, with a margin financing multiple of 3.85x. With fewer subscribers and more shares, allocation is relatively easier.
The company's revenue for 2022-2024 was RMB 288 million, RMB 530 million, and RMB 632 million, respectively, with a CAGR of 9.3%. H1 2025 revenue was RMB 198 million, down 30.03% YoY from RMB 283 million in H1 2024.
Gross profit for 2022-2024 was RMB 225 million, RMB 419 million, and RMB 485 million, respectively. H1 2025 gross profit was RMB 132 million, down 42.11% YoY from RMB 228 million in H1 2024.
Net loss for 2022-2024 was RMB -102 million, RMB -62.93 million, and RMB -118 million, respectively. H1 2025 net loss was RMB -106 million, compared to RMB -108 million in H1 2024.
Xunce's operating cash flow has been consistently negative, sustained solely by the RMB 1 billion raised in 2022 and 2023. Annual losses average around RMB 150-200 million. H1 2025 cash and cash equivalents were RMB 222 million.
Before the IPO, the company completed seven rounds of financing. The crossover round was completed in December 2023, with a pre-money valuation of RMB 6 billion and a post-money valuation of RMB 6.22 billion. The cost per share was RMB 20.73 (approximately HKD 22.92), a 55.76% discount to the IPO price. The lock-up period is 12 months.
Nine cornerstone investors subscribed to a total of USD 3.7 billion (approximately HKD 3.08 billion), accounting for 26.56% of the offering, with a six-month lock-up.
Looking at the revenue situation, 2025 saw a 42.11% YoY decline. Cash flow is steadily deteriorating, and without further fundraising, the company's cash flow will be in trouble. Industry clients are also rapidly churning. The company's explanation is a significant shift in revenue structure.
Based on the data, the issuance market cap of HKD 15.48-17.738 billion is somewhat unreasonable, given the asset management and diversified industries it serves, which are rationally valued. Even at the lower end, the P/S ratio is as high as 24.5x. Looking around, Tencent is among the pre-IPO investors—is this the reliance?
No concept, no performance, just expensive. It has become the least popular IPO in this batch, with little subscription interest. Will it succeed in listing?
$USAS BUILDING(02671.HK) $XUNCE(03317.HK)
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