Shouhui Group’s IPO: Riding the Wave of China’s Digital Insurance Boom

📢 Shouhui Group (02621.HK) IPO: A Deep Dive into the Upcoming Listing

📌 IPO Snapshot

• Offer Price Range: HK$6.48 to HK$8.08 per share

• Board Lot Size: 400 shares

• Entry Fee: Approximately HK$3,264.59

• Total Shares Offered: 24.3584 million

• Public Offering: 10%

• International Offering: 90%

• Listing Date: May 30, 2025

• Joint Sponsors: CICC and Huatai International

💰 Use of Proceeds

• 60% (~HK$69.8M): Enhance and optimize sales and marketing network

• 20% (~HK$23.3M): Upgrade R&D capabilities and improve technology infrastructure

• 10% (~HK$11.6M): Strategic mergers, acquisitions, and investments

• 10% (~HK$11.6M): Working capital and general corporate purposes

📈 Subscription Details

• Retail Tranche Oversubscription: Over 354.7 times

• Overall Subscription Rate: Approximately 316.82 times

🏦 Financial Overview

• 2024 Revenue: RMB 1.387 billion (↓15% YoY)

• Net Loss: RMB 136 million (↓61% YoY)

• Gross Profit Margin: 38.13%

• Net Profit Margin: -9.81%

• Current Ratio: 0.47

• Quick Ratio: 0.47

🧠 Management Team

• Chairman & CEO: Ma Tianyi

• COO: Liu Fali

• Executive Directors: Qin Chunhong, Ma Ye, Ma Yong

• Independent Non-Executive Directors: Ha Suoku, Li Xu, Hu Jingqiang

📊 Market Position & Industry

• Industry: Life and Health Insurance Intermediary Services

• Market Share: 7.3% in China’s online life insurance distribution (2nd largest)

• Ranking: 8th in China’s life insurance intermediary market by total premiums in 2023

⚠️ Risk Factors

• Revenue Decline: 15% decrease in 2024 due to reduced demand for long-term life insurance amid China’s economic slowdown.

• Profitability: Net losses reported in recent years, though the loss has narrowed.

• Liquidity: Current and quick ratios below 1, indicating potential liquidity concerns.

📅 IPO Timeline

• Subscription Period: May 22 to May 27, 2025

• Pricing Date: May 28, 2025

• Allotment Results: May 29, 2025

• Listing Date: May 30, 2025

🔍 Peer Comparison

📚 Prospectus

• Download Link: Shouhui Group ProspectusHKEXnews+2Tiger Brokers+2Tiger Brokers+2

💡 Investment Consideration

Given the significant oversubscription rate, particularly in the retail tranche, there is strong investor interest in Shouhui Group’s IPO. However, potential investors should be cautious due to the company’s recent financial performance, including declining revenue and net losses. The company’s position as the second-largest online life insurance distributor in China is a positive indicator of its market presence

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