Hong Kong Stock Market "Says" | On the Day of Ringing the Bell, Why Was the Copper Master "Cut in Half"?

Ask AI · Why Has Tong Shifu’s Overvalued Listing Met With a Cool Reception?

By Daily Economic News reporter: Zeng Zijian    Editor: Yuan Dong

Today (March 31), Tong Shifu (HK00664) was listed on the Hong Kong Stock Exchange. The moment the copper gong was struck, the share price was immediately “cut in half.”

At the morning opening, Tong Shifu was quoted at HK$35.42, down more than 40% from the issue price of HK$60. By the close, Tong Shifu’s share price was down 49.17%.

Tong Shifu’s main business is copper-based cultural and creative products. It feels a bit like Lao Pu Gold—except that Lao Pu Gold sells gold jewelry, while Tong Shifu sells copper accessories. It should be said that Tong Shifu does have a fairly well-known presence in its niche field, but compared with Lao Pu Gold, why has it received such a dramatically different treatment after its listing?

The author analyzes the following reasons.

First, the IPO pricing was too high. Tong Shifu’s issue price was HK$60 per share. If calculated based on its 2024 annual performance, its issue price earnings multiple is about 43x; if calculated based on its 2025 performance, the issue price earnings multiple exceeds 70x. So, whether compared with Pop Mart or with Lao Pu Gold—both being consumer stocks—Tong Shifu’s valuation is clearly overpriced.

Precisely because of this, Tong Shifu did not earn high institutional recognition during the offering period. Its public offering was oversubscribed by nearly 60 times, indicating retail investors still showed strong interest; but the international offering was only subscribed by 1.56 times—clearly a case of “getting applause but no attendance.”

Second, Tong Shifu’s ceiling for its track is extremely low. The prospectus shows that Tong Shifu’s market share in copper-based cultural and creative products is as high as 35%, but the company’s total revenue in 2024 was roughly RMB 550 million. In other words, the overall market size in 2024 was only about RMB 1.6 billion. This scale is far smaller than the jewelry market or the trend-toy market. In addition, the core consumer base for copper accessories is “middle-aged men”—its customer base is fixed and grows slowly, and its repurchase rate is low. That also means there is very limited room for future imagination.

Third, Tong Shifu’s path to listing has been highly convoluted. It was originally preparing to list on the A-share market in 2024, but that plan ultimately was shelved. In May 2025, its Hong Kong listing application lapsed; in November of the same year, it submitted its application again, and only now has it finally gotten what it was hoping for. But now is not a good time for Tong Shifu to list on the Hong Kong Stock Exchange; it feels a bit like a “forced launch.” The market conditions in Hong Kong stocks are not good in general, and Hong Kong IPOs (initial public offerings) have also been showing the characteristics of “hot hard technology, cold consumption.”

To sum up, today’s “halving” of Tong Shifu’s share price after the gong strike is not surprising at all. For investors, this case also serves as a solid lesson: For leaders in niche tracks, if they lack sustained growth capability and reasonable valuation, even with high brand recognition, they may still be unable to win the market’s long-term recognition.

Disclaimer: The contents and data in this article are for reference only and do not constitute investment advice. Before using, please verify. Trading is at your own risk.

Daily Economic News