USAS BUILDING (02671) experienced a sharp decline of over 18% on its second trading day, hitting HK$6.19, which fell below its initial public offering price of HK$7.1. As of the time of writing, the stock was down 18.06%, trading at HK$6.26, with a turnover of HK$7.3526 million and a total market capitalization of less than HK$800 million.
Public information reveals that USAS BUILDING is a comprehensive subcontracting service provider for prefabricated steel structure buildings. Established in 1999, the company primarily offers integrated services for construction projects in sectors such as automotive, machinery, catering, and textiles, covering project design and optimization, procurement, manufacturing, and installation.
Its main business operations are divided into subcontracting services for prefabricated steel structure buildings; specialized engineering contracting; and industrial environmental protection equipment. According to a report by Frost & Sullivan, based on 2024 revenue, the company ranked third in the industrial segment of China's prefabricated steel structure building market, holding a market share of 3.5%.
Guoyuan International previously commented that while the prefabricated building market is expected to expand further in the future with the implementation of national policies and regional government plans promoting the adoption of such buildings, the company's recent financial performance has shown significant volatility. Furthermore, the IPO price range corresponded to a 2024 price-to-earnings ratio of approximately 10.4 to 13.4 times, which is considered relatively high.
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