Hand Tools Giant Proxene Surged 96% from First Day at Emerging Stock Market

published: 2022-08-08 9:30 | editor: | category: News

Hand tools giant Proxene was listed at the emerging stock market with a share price of NT$63.5 today, and had once surged by 96.85% to NT$125. Proxene primarily serves as an ODM and OEM for industrial adjustable wrenches at a global market share of 2%, and conforms to the development tendency of EVs and the green power industry with substantial potential.

Chairwoman Chao Hsiu-yue commented the Proxene is one of the few companies in Asia that is able to produce “digital adjustable wrenches” and “fully insulated adjustable wrenches” under the tendency of the big becomes bigger, and hopes to integrate with the industry through Taiwan’s capital market in order to form a fleet that can tackle the rapid changes and larger challenges of the environment.

General Manager Wu Chuan-fu pointed out that Proxene has been undergoing active upgrades in smart and automated production lines over recent years, which effectively lower cost of manpower and retain high product quality, allowing Proxene to continuously elevate its market share in professional hand tools.

Host underwriter Cathay Securities Corporation commented that Proxene has professionalized and elaborated the traditional industry by implementing in-house R&D on fully insulated adjustable wrenches, as well as contributing to global ESG development, which coincides with the corporation’s belief of sustainable operation. Cathay Securities Corporation looks forward to working with Proxene in the future, and vitalizing the capital market accordingly.

Cathay Securities Corporation pointed out that Proxene’s focus on mid-to-high end products and customized production means that the company possesses a certain degree of profitability compared to Chinese and emerging competitors. The company sits at a gross margin of 25-30%, which is better than the average level of 20-25% from its competitors, and the demand for insulated hand tools is becoming increasingly essential alongside the development of EVs and the green power industry.

Cathay Securities Corporation emphasized that EVs have a voltage of approximately 650V, which is much higher than the DC voltage of traditional vehicles at 12/24V, and require a much higher threshold in processing and material applications for insulated hand tools under conformance of certification standards. Costing 2-5 times more than general hand tools, insulated hand tools are products with high added values, and Proxene, being one of the few companies in Asia that can manufacture fully insulated wrenches, possesses absolute competitive advantages.

 (Cover photo source: Proxene)

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