The company's main products are air fryers, and its business mainly includes ODM/OEM business and OBM business of its own brand of "one to one". The company belongs to OEM small household appliances company with low gross profit margin. In recent years, relying on the explosion of air fryer has achieved good revenue, but the market competition is fierce in the later period, and it is difficult to maintain high growth. Combined with the valuation of similar companies, it is recommended to give the issuer a short-term valuation of about 4 billion yuan, and there is no risk of breaking.

The problem in the breaking of new shares refers to the issue price of stocks. The breaking of new shares means that the shares fall below the issue price on the day of issuance and listing, and investors who win the lottery in the primary market will also lose money. In the stock market, when the stock price falls below the issue price, it is a break. Generally speaking, it is rare in a bull market, and it is more common in the market wandering period.

As for the reasons for the frequent breaking of new shares, the market generally believes that the market downturn is not the main reason, but the high issue price and price-earnings ratio are the culprit.

In the issuance of new shares, investment banks can play multiple roles at the same time, which can be sponsors, underwriters, financial advisers and shareholders. This multiple role of direct investment, sponsorship and underwriting means that interests are directly related. The higher the amount raised, the higher the underwriting fee can be obtained, and if there is direct investment, the return will be richer.

The reality is indeed the case. It is understood that some brokers charge an underwriting fee of 5% to 8% for the over-raised funds of IPO projects, which is significantly higher than the normal standard. In the case that the interests of investment banks and enterprises converge, investment banks are undoubtedly more motivated to set the issue price higher.

The main crux of the frequent phenomenon of "three highs" lies in investment banks. In her view, the investment bank's judgment on valuation is not accurate, mainly because of two aspects: one is professional ability, and the other is lack of self-discipline.