What the analysts say
Francis Lun Sheung-lim, general manager, Fulbright Securities
Pros: Zhongwang is the industry leader and its products are mainly for domestic sale, making it more resilient than export-oriented companies. Pricing is also reasonable
Cons: Investors may have to buy the shares at the cycle peak. Oversupply in the mainland downstream market is also a concern
Conita Hung Lai-ping, head of equity research, Delta Asia Financial Group
Pros: The company may benefit from the mainland's infrastructure boom
Cons: Its price-earnings ratio is not that attractive as there are other choices that may benefit from the infrastructure boom. Investors also face the risk of a market downturn between the subscription period and its trading debut
Kenny Tang Sing-hing, executive director, Redford Securities
Pros: It focuses on making aluminium products used in infrastructure projects and therefore can benefit from government policies. It also has a high profit margin and a huge market share
Cons: Market competition is severe, thus putting pressure on product prices, and the high profit margin may not be sustained