MLS Strong Revenue Performance Attracts IPO Investors to Pitch In

Most new stocks on the market rarely achieve skyrocketing growth rates, but investors that have betted on MLS shares are probably thrilled at the moment.

MLS recently published online 80,100 investors that were selected through a lucky draw, will be able to purchase 500 shares during its recent IPO.

These elated investors have a lot to be joyful about. MLS revenue has continued to soar in recent years, with revenues escalating from RMB 1.27 billion in 2011 to RMB 2.87 billion in 2013. The company’s Compound Annual Growth Rate (CAGR) from 2011 to 2013 was 50.21%. Additionally, net profits jumped 98.22% from RMB 111 million in 2011 to RMB 436 million in 2013.

Lucky investors that were chosen by MLS lucky draw can buy 500 company shares from its recent IPO. (MLS/LEDinside)

In 2014, MLS revenue again increased 39.25% to RMB 4 billion, while net profits was up 0.75% to RMB 439 million. Other LED manufacturers revenue performance during 2014 have paled in comparison. For instance, Nationstar’s revenue was RMB 1.54 billion and its net profit was RMB 145 million, while Mason LED revenue was RMB 523 million, and had a net profit of only RMB 40.40 million. Jufei Opto’s estimated net profits from last year ranges between RMB 170 million and RMB 190 million. Other LED manufacturers estimated profits will be even lower, Honlitronics expects revenues to be around 82.40 million to 94.51 million in 2014. Changfang Lighting and Refond’s net profit estimations are about half of that at respectively RMB 50 million to RMB 53 million and RMB 20 million to RMB 30 million.

Investors are very smart, and tend to acquire shares when it is most popular. As of Feb. 10, 2015, MLS reported selling 188,500 shares offline, and 3.52 million shares were effectively sold online.

In a recent investor relations announcement, MLS announced it had made certain adjustments. In the end the company issued 4.45 million shares offline, which is about 10% of the total shares issued. The remaining 90% shares were issued online, and totaled 40.05 million shares. Online tranche oversubscription reached 87.94 times while offline was 423.60 times.

Who knows what other big waves MLS will cause in the investment market in the near future?

(Author: Amber Liu, Chief Editor, LEDinside China, Translator: Judy Lin, Chief Editor, LEDinside)

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