Chinese injection press maker Guangdong Yizumi Precision Machinery Co. Ltd. has seen its stock price more than double in the first five trading days since its launch on Jan. 23.
The initial price offering (IPO) was priced at 13.32 yuan per share, but it opened at 15.98 yuan to the market on Jan. 23. After five days of aggressive growth, it closed at 28.08 yuan on Jan. 29.
Due to the significant increase, the company had to issue an announcement reminding investors of risks, based on Shenzhen stock exchange regulations.
In the Jan. 29 statement, Yizumi warned investors of the possibility that its financials may see a major decline (up to more than 50 percent) if the macroeconomic environment at home and abroad continues the downturn or deteriorates.
The company listed its main downstream markets as appliance, automotive, medical equipment, 3C (computer, communication and consumer electronics), packaging and aerospace.
Yizumi identified the following brands/companies as its main competitors: Demag, KraussMaffei, Ube and Sumitomo in the global circle; and Haitian, Chen Hsong and L.K. Technology in the domestic market.
It also revealed that its R&D staff has reached 187, making up 11 percent of the total headcount.
Its annual capacity for injection molding machines will jump from 3,380 units in 2013 to 5,680 units after the IPO-funded expansion completes, or a 68 percent increase. It's also boosting its capacity of die casting machines from 760 per year to 1,300.