IPO Weekly: Two Leading Companies Set to Launch Before National Day Holiday

As the National Day holiday approaches, China's A-share market is preparing for two significant IPOs from leading companies in their respective sectors. This week's offerings represent high-quality enterprises with strong market positions and growth potential, coming at a time when investors are increasingly seeking opportunities in specialized industries.

Key Highlights

• Lianya Pharmaceutical (301569): A high-tech enterprise focused on research and development of generic drugs, particularly specializing in complex drug formulations including sustained-release and low-dose medications. The company also provides R&D services to pharmaceutical enterprises and research institutions, positioning itself as a leader in China's generic drug market.

• Southern Dairy (920196): A regional dairy powerhouse in Guizhou province with well-known brands like 'Shanhua' and 'Huaxi Old Yogurt.' The company has demonstrated consistent financial growth, achieving 1.839 billion yuan in revenue and 221 million yuan in net profit in 2025, with over half of its raw milk sourced from external pastures.

• Hongfu Cheng (301716): A 'specialized, refined, distinctive, and innovative' enterprise focusing on advanced electronic functional materials for thermal management and electromagnetic shielding. The company has successfully entered the supply chains of global leading AI chip manufacturers with its graphene thermal pads and metal carbon-based composite materials.

• Anda Co., Ltd. (920202): Specializes in precision aluminum die-casting parts for automotive applications, including powertrain components, new energy vehicle 'three-electric system' parts, and suspension system components, serving the rapidly growing electric vehicle market.

In-depth Analysis

The current IPO landscape reflects China's strategic focus on technological advancement and domestic market consolidation. The pharmaceutical sector, represented by Lianya Pharmaceutical, highlights the country's push toward self-sufficiency in advanced drug formulations, particularly as China's population ages and healthcare demands increase. Meanwhile, Southern Dairy's strong regional presence and expanding distribution channels demonstrate how consumer goods companies are leveraging both traditional and digital channels to capture market share.

The electronics materials sector, with Hongfu Cheng's innovative thermal management solutions, addresses critical bottlenecks in China's semiconductor and AI industries. As global supply chains reconfigure and domestic demand for high-performance computing grows, companies like Hongfu Cheng are positioned to benefit from both import substitution and export opportunities.

Looking ahead, the IPO market appears selective but supportive of genuinely innovative companies with clear competitive advantages. The recent strong performance of newly listed stocks—some with first-day gains exceeding 300%—suggests continued investor appetite for quality offerings, particularly in technology and consumer sectors. However, regulatory scrutiny remains intense, with approval processes emphasizing sustainable business models rather than short-term growth prospects.

Frequently Asked Questions

What makes these IPOs attractive to investors? These companies represent leaders in their respective sectors with strong market positions, consistent financial performance, and technological advantages. Their offerings come during a period of market stabilization following regulatory reforms, potentially providing attractive entry points for long-term investors.

How has the IPO market performed recently? Recent IPOs have shown strong performance, with several stocks posting first-day gains exceeding 300%. For example, Century Digital gained 742.37% on its debut, while Zhongsu Plastic rose 683.29%, indicating continued investor enthusiasm for quality new listings despite overall market volatility.

Source: https://www.thepaper.cn/newsDetail_forward_34162788