Jensun Electronics (00699.HK) plunged over 6% on its first trading day, raising HK$3.3 billion while its market capitalisation dipped below HK$32 billion

ZC Asia has learnt that Ningbo Joyson Electronics Co., Ltd. (Stock Code: 0699.HK) officially listed on the Hong Kong Stock Exchange on 6 November. The issue price stood at HK$22 per share, with a total of 155 million shares issued, raising HK$3.412 billion. After deducting listing expenses, the net proceeds amounted to HK$3.253 billion. On its first trading day, the company's share price opened at HK$21.50, representing a 2.3% decline from the issue price. The decline subsequently widened, with the share price falling over 6% as of press time, bringing the total market capitalisation to HK$31.977 billion.

According to the prospectus, Joyson Electronics is a provider of intelligent automotive technology solutions, with core operations spanning automotive electronics and automotive safety systems. Per Frost & Sullivan research, the company ranks as the world's second-largest supplier of passive automotive safety products by revenue and holds the 41st position among global automotive component manufacturers in 2024.

The company's cornerstone investors include JSC (affiliated with Jingquan Joyson), Ningbo Xinzhi, Jump Trading, Zhongding Capital Phase VIII, China Post Wealth Management, Vandi (affiliated with CCB International), and Fidelidade (affiliated with Fosun International), collectively subscribing for US$107 million. Among these, JSC subscribed for US$42.1 million, Ningbo Xinzhi for US$20 million, while other investors subscribed for amounts ranging between US$5 million and US$10 million.

Financial data indicates Jusheng Electronics' performance has maintained steady growth. In the first three quarters of 2025, the company achieved operating revenue of RMB 45.844 billion, representing an 11.45% year-on-year increase; net profit reached RMB 1.12 billion, up 19% year-on-year. Third-quarter revenue alone stood at RMB 15.497 billion, with net profit of RMB 413 million, marking a 35.4% year-on-year growth. Over a longer period, the company's revenue grew from RMB 49.79 billion in 2022 to RMB 55.864 billion in 2024, while profits increased from RMB 233 million to RMB 1.24 billion.

Regarding equity structure, founder Wang Jianfeng controls approximately 39.85% of shares through direct holdings and his controlling stake in Jusheng Group. Notably, the controlling shareholder Jusheng Group and management recently implemented a share purchase plan, cumulatively investing RMB 83.82 million.

Despite robust performance, the company's financial structure remains challenging. As of the end of Q1 2025, interest-bearing debt stood at approximately RMB 25.6 billion, with elevated interest expenses exerting pressure on profits. Market analysis suggests the share price falling below its IPO price in Hong Kong reflects investors' growing caution regarding automotive component sector valuations, alongside heightened scrutiny of the company's financial structure.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.