Following the implementation of new share allocation rules for Hong Kong IPOs, the system has become heavily skewed - only 10% is allocated to retail investors. With limited shares available to retail investors, institutional investors can easily manipulate prices. The advantage is a lower post-listing break rate, but the downside is that retail investors miss out on gains even if they can't secure allocations.

**I. Subscription Information**

**II. Company Overview**

SHUANGDENG, based in Taizhou, Jiangsu Province, was established in 2011. The company's core business involves providing energy storage batteries and system solutions for telecommunications base stations and data centers, with a strategic positioning of "Connectivity + Computing Power" - "Connectivity" refers to telecommunications base station energy storage, while "Computing Power" covers data center and intelligent computing center energy storage.

As of 2024, based on shipment volume, SHUANGDENG ranks first globally in the telecommunications and data center energy storage battery market with an 11.1% market share. In the data center energy storage market, it holds a 16.1% share (first among Chinese companies), while in telecommunications base station energy storage, it accounts for 9.2%.

The company's client portfolio includes 5 of the world's top 10 telecommunications operators and all of China's five major telecommunications operators (China Mobile, China Unicom, China Telecom, etc.). It serves 80% of China's leading proprietary data centers (such as Alibaba, JD.com) and 90% of leading third-party data centers (such as GDS, Chindata Group).

The average partnership with top five clients exceeds 10 years, demonstrating strong customer loyalty.

Financial data shows SHUANGDENG's revenue has grown steadily in recent years: 4.072 billion yuan in 2022, 4.26 billion yuan in 2023, and 4.499 billion yuan in 2024. Revenue for the first five months of 2025 reached 1.867 billion yuan, up 33.9% year-over-year.

This growth is primarily driven by the explosive growth in data center business. In the first five months of this year, data center business revenue surged nearly 120% from 397 million yuan in the same period last year to 873 million yuan, with its proportion of total revenue jumping from 28.4% to 46.7%, surpassing telecommunications base station business for the first time.

However, net profit has shown some volatility. Net profits from 2022 to 2024 were 281 million yuan, 385 million yuan, and 353 million yuan respectively. The 2024 decline was mainly due to increased R&D investment in sodium-ion and solid-state batteries. Net profit for the first five months of 2025 was approximately 127 million yuan.

SHUANGDENG adopts a parallel technology roadmap of "Lead-acid + Lithium + Sodium-ion" to match different scenario requirements:

Lead-acid batteries: Strong instantaneous discharge performance and low cost, making them the mainstream choice for telecommunications base station backup power.

Lithium batteries: Used for peak shaving and valley filling in data centers. The company has launched semi-solid liquid-cooled energy storage systems (6.25MWh) with 20% higher energy density and a 20-year lifespan.

Sodium-ion batteries: In collaboration with Tsinghua University, the company has achieved breakthroughs in low-temperature technology, supporting operation in a wide temperature range from -40°C to 60°C, solving pain points in high-altitude cold regions, and has secured bulk orders.

From an industry development perspective, artificial intelligence development is driving explosive growth in computing power demand, with a single AI data center consuming as much electricity annually as 100,000 households. Energy storage systems, as core facilities ensuring power stability, are experiencing exponential demand growth.

Global data center energy storage new installations are expected to grow from 16.5GWh in 2024 to 209.4GWh in 2030, with an annual compound growth rate of 52.7%.

Policy benefits include China's "East Data, West Computing" project accelerating large-scale data center construction. In 2024 domestic project bidding, SHUANGDENG exclusively won a lithium battery project for a leading internet company, highlighting its technological recognition.

**III. Comprehensive Review**

While SHUANGDENG also sells new energy batteries, it primarily focuses on telecommunications base stations and data center energy storage, creating differentiated competition from new energy vehicle batteries. Power battery companies like CATL focus on improving energy density, while SHUANGDENG concentrates on environmental adaptability when serving infrastructure energy security.

In terms of valuation, power battery leader CATL has a market value of 1.3 trillion yuan on A-shares with a 25x valuation; global energy storage battery runner-up EVE Energy has a market value of 97 billion yuan on A-shares with a 24x valuation; household storage and telecommunications storage supplier Penghui Energy has a market value of 14 billion yuan on A-shares and is still loss-making.

SHUANGDENG has a market value of 6.048 billion Hong Kong dollars with a 16x valuation, representing a 20%-40% discount compared to A-share peers. This discount partially reflects short-term profitability pressure but doesn't fully price in two key advantages:

1. Data center energy storage leadership position: 16.1% global market share tied to leading clients, directly benefiting from AI computing infrastructure waves.

2. Technology reserve conversion potential: After sodium-ion battery commercialization, it's expected to open new markets in Northern Europe and high-altitude cold regions, improving gross margins.

SHUANGDENG's IPO involves issuing shares representing 14.05% of total shares. At the subscription price of HK$14.51, it will raise approximately 850 million yuan, with one cornerstone investor locking in 240 million yuan, leaving a float of 610 million Hong Kong dollars.

**IV. Subscription Rate Prediction**

SHUANGDENG's subscription showed 173x oversubscription on the first day, with final oversubscription likely exceeding 3000x, with 5,856 lots each for Groups A and B.

Assuming 200,000 people apply, the estimated single-lot success rate is 1%, with both Groups A and B requiring lottery allocation.

SHUANGDENG's IPO share allocation uses Mechanism B, with a fixed 10% public offering ratio regardless of oversubscription multiples, no clawback mechanism. Retail investors receive even fewer shares than Sinopharm, making new share applications extremely competitive. Group A should use cash applications, otherwise failing to secure allocation means just contributing handling fees.

Referring to the previous popular new stock Sinopharm, Group B had 22,000 subscribers. SHUANGDENG is estimated to have similar numbers, with even top Group B applicants needing lottery selection. Success means profit - it's all about luck.

**V. New Stock Rating**

This stock's rating is "Go All In!" (Go All In > Full Position > All In > Speculative > Pass)

SHUANGDENG is no longer about whether to apply, but how to secure allocation. Hong Kong new share applications are increasingly resembling the Beijing Stock Exchange.

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