In 2025, Hong Kong stock market IPO sentiment has significantly warmed up. By the end of August 2025, Hong Kong IPO fundraising reached over HK$130 billion, a nearly six-fold year-over-year increase, ranking first globally. Among these, as gold prices continue to surge, gold-related concept stocks have become the "favorite" of Hong Kong IPO investors. For instance, Lao Pu Gold (06181), which listed on the Hong Kong Stock Exchange on June 28, 2024, at an issue price of HK$40.5 per share, soared to a high of HK$74 on its first trading day, gaining over 80%. As of July 8, 2025, its stock price reached a historical high of HK$1,108, representing a gain of over 26 times the issue price, reflecting investors' strong recognition of gold concept stocks.

Now, Shenzhen Hipine Precision Technology, Putian's "gold watch titan" with gold concept exposure, is also attracting significant capital attention. Shenzhen Hipine Precision Technology (02583) conducted its IPO roadshow from September 19 to September 24, 2025. The company plans to globally offer 10.6 million shares, with 10% allocated to Hong Kong offering and 90% to international offering, plus a 15% over-allotment option. The offer price ranges from HK$27.0-29.6 per share, with a board lot of 100 shares and an entry fee of HK$2,989.85. The company aims to raise approximately HK$314 million and is expected to list on September 29.

According to IPO margin financing data, Shenzhen Hipine Precision Technology's first-day margin financing totaled approximately HK$492 million, with a subscription multiple of about 15.69 times. As of 6:00 PM on September 23, the margin financing total reached HK$15.552 billion, with an oversubscription multiple of 495.65 times. By 9:30 AM on September 24, the margin financing total soared to HK$45.939 billion, with an oversubscription multiple of 1,464.14 times, demonstrating unprecedented investor enthusiasm.

Notably, Shenzhen Hipine Precision Technology's IPO adopted the new "Mechanism B." Unlike traditional IPOs, regardless of how high the oversubscription multiple is, the public offering portion remains fixed at 10% without triggering clawback. This means that despite unprecedented retail investor enthusiasm, the number of shares ultimately allocated to retail investors is fixed and very scarce, potentially further intensifying first-day supply-demand imbalance and stock price volatility.

So, from a fundamental perspective, what is Shenzhen Hipine Precision Technology's investment value?

**Leading Industry Position with Significant Short-term Profit Growth Momentum**

Shenzhen Hipine Precision Technology originated in Putian and was founded in Shenzhen. The company's actual controller, Li Yongzhong, was born in Putian, Fujian, and comes from a generation of gold craftsmen. In 2003, he brought years of industry experience to Shenzhen to establish a jewelry company. In 2013, he turned his attention to combining gold and watches, founding "Zunshang Timepiece" in Shenzhen, later renamed Shenzhen Hipine Precision Technology.

According to official information, Shenzhen Hipine Precision Technology is a precious metal watch designer, manufacturer, and brand owner, primarily generating revenue through sales of precious metal watches designed and manufactured under its flagship proprietary brand "HIPINE." According to industry data, in 2024, calculated by GMV (Gross Merchandise Value), Shenzhen Hipine Precision Technology was China's largest gold watch brand with a market share of 27.08%.

Firmly holding the "leading position" in China's precious metal watch segment, Shenzhen Hipine Precision Technology's performance showed volatility from 2022 to 2024 but improved significantly after entering 2025.

On one hand, revenue scale steadily expanded, reversing from slowing growth to over 20% year-over-year growth. According to prospectus data, from 2022 to 2024, Shenzhen Hipine Precision Technology achieved revenues of RMB 324 million, RMB 445 million, and RMB 457 million respectively, increasing year by year, though 2024 revenue growth significantly slowed. In the first five months of 2025, revenue grew 21.6% year-over-year to RMB 231 million, demonstrating short-term growth resilience.

On the other hand, net profit showed a "decline then rise" pattern, with significant short-term profit growth momentum. From 2022 to 2024, Shenzhen Hipine Precision Technology achieved net profits of RMB 24.54 million, RMB 52.10 million, and RMB 49.35 million respectively, showing volatility, with 2024 declining 5.3% year-over-year. In the first five months of 2025, net profit reached RMB 42.8 million, recovering to 86.7% of 2024's full-year level, showing significant short-term profit growth momentum.

Meanwhile, the company's gross margin continued to improve, rising from 19.8% in 2022 to 27.2% in 2024, and further to 31.01% in the first five months of 2025. This is a very positive signal, indicating that the company has not only optimized its product structure with higher-margin solid gold watch revenue proportion continuously increasing, but scaled production and process improvements may also have brought unit cost reductions.

Looking at Shenzhen Hipine Precision Technology's revenue structure reveals more growth drivers. The company's revenue structure is primarily composed of own brand manufacturing (OBM) business, supplemented by original design manufacturing (ODM) business. OBM is the company's main revenue source, with sales proportion fluctuating between 80%-90%. The company owns two proprietary watch brands: core brand Hipine and sub-brand Golden Bear. ODM revenue mainly includes developing and producing private-label precious metal watches and accessories for clients, providing processing services. ODM clients include several well-known domestic jewelry brands such as Lao Feng Xiang, China Jewelry, and Chow Tai Seng.

The core drivers of significant performance growth in the first five months of 2025 include product structure optimization, smart gold watch innovation breakthroughs, and precious metal accessories business expansion. Although the OBM business revenue proportion remained unchanged in the first five months of 2025, the company's product structure underwent significant changes. Traditional precious metal watch revenue proportion declined from 70.7% in 2024 to 49.9%, while precious metal accessories and products revenue proportion surged from less than 10% in 2023 to 46.6%, becoming the second growth curve. These adjustments undoubtedly reduced dependence on a single category and improved overall gross margin.

Additionally, in 2025, the ODM business added new custom smart movement orders in cooperation with Huawei, such as developing smart watches for a pharmaceutical company's subsidiary, further expanding the company's high-margin product lines.

Through smart gold watch technology crossover, precious metal accessories category expansion, and traditional gold watch premiumization strategies, Shenzhen Hipine Precision Technology achieved revenue structure optimization and gross margin improvement.

**"Small but Beautiful" Gold Watch Segment with Both Opportunities and Challenges**

Considering precious metal watch market trends, the precious metal watch segment represents a "small but beautiful" opportunity for Shenzhen Hipine Precision Technology. According to Frost & Sullivan data, China's precious metal watch market size was RMB 26.46 billion by GMV in 2024, with a compound annual growth rate of 4.54% from 2019 to 2024. It is expected to reach RMB 34.08 billion by 2029, with a compound annual growth rate of 5.19% from 2024 to 2029.

While this market is relatively small and lacks the explosive growth potential of smart watches or mass consumer products, its demand is relatively resilient to economic cycles with less volatility.

First, gold's dual attributes as both "consumer goods + investment goods" are strongly driving demand. Against the backdrop of significant economic growth uncertainty, gold as a traditional safe-haven asset has increased appeal. Consumers purchasing solid gold watches satisfy both wearing and gifting consumption needs while viewing them as asset preservation methods.

Second, under consumption upgrading and the rise of domestic trends, consumers, especially younger generations, have higher requirements for product quality, design, and brand content. Beautifully designed, exquisitely crafted domestic gold watches align with "domestic trend" consumption patterns and are gradually replacing market share from traditional gold jewelry and foreign fashion watches.

However, despite significant industry benefits, Shenzhen Hipine Precision Technology still faces unavoidable development concerns.

First, as of the end of 2024, the company held inventory worth RMB 656 million with a turnover period of 708 days, far higher than normal industry levels. This not only ties up substantial working capital but also exposes Shenzhen Hipine Precision Technology to significant impairment risks from gold price declines.

Second, Shenzhen Hipine Precision Technology exhibits obvious major customer dependency. From fiscal 2022 to the first six months of 2024, total revenue from the top five customers accounted for 91.34%, 91.08%, and 87.26% respectively, with revenue from the largest customer representing approximately 30.69%, 35.80%, 32.29%, and 25.55% respectively. High customer concentration undoubtedly amplifies customer risks and industry cyclical risks while limiting the company's pricing power and performance stability.

Furthermore, while Shenzhen Hipine Precision Technology leads its niche market, compared to full-category jewelry giants like Chow Tai Fook and Lao Feng Xiang or Swiss luxury watch brands, Shenzhen Hipine Precision Technology's brand awareness among mass consumers still needs improvement. How to evolve from a "channel brand" to a "consumer brand" remains a long-term challenge.

In summary, Shenzhen Hipine Precision Technology's investment story can be characterized as a leading player in a niche segment with stable growth and abundant profits. While facing dual challenges of internal operational risks and market ceiling limitations, the company's multiple highlights of scarcity and high profitability make its investment appeal relatively strong.