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

Everyday Business News reporter | Zeng Zijian    Everyday Business News editor | Yuan Dong

Today (March 31), Tong Shifu (HK00664) went public on the Hong Kong Stock Exchange. The moment the gong rang, the share price was immediately cut in half—down “50%”.

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

Tong Shifu mainly sells copper-based cultural and creative products. It feels a bit similar to Lao Feng Xiang (Old Tempered Gold), except that Lao Feng Xiang sells gold jewelry, while Tong Shifu sells copper ornaments. It should be said that Tong Shifu has a fairly well-known presence within its niche sector. But compared with Lao Feng Xiang, why is the treatment so drastically different after the listing?

The author analyzes the following reasons.

First, the pricing for the new shares was too high. Tong Shifu’s offer price was HK$60 per share. If calculated based on the 2024 annual performance, its offer-year price-to-earnings ratio is about 43x; if calculated based on the 2025 performance, the offer-year P/E exceeds 70x. So, whether compared with Pop Mart or with Lao Feng Xiang, as the same kind of consumer stock, Tong Shifu’s valuation is clearly too high.

Precisely because of this, Tong Shifu’s institutional recognition during the bookbuilding period was not strong. Its public offering was oversubscribed by nearly 60 times, which shows retail investors were still fairly supportive. But the international offering received only 1.56x subscription, which is clearly “lauded but not bringing seats.”

Second, Tong Shifu’s runway in its niche track is extremely limited. The prospectus shows Tong Shifu’s market share in copper-based cultural and creative items is as high as 35%, but the company’s total revenue in 2024 was nearly 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 that of the jewelry market or the trendy toy market. In addition, the core consumer base for copper ornaments is “middle-aged men.” The customer base is fixed and grows slowly, with a low repeat purchase rate—meaning the space for future imagination is very limited.

Third, Tong Shifu’s listing process has been highly winding. It originally planned to list on A-shares in 2024, but ultimately the plan was shelved. In May 2025, the application for a Hong Kong listing lapsed. In November of the same year, it submitted the filing again, and only now has it finally come true. But right now, the timing of Tong Shifu’s listing on the Hong Kong Exchange is not good, giving the feeling of being “pushed through to launch.” The market conditions for Hong Kong stocks are bad to begin with, and Hong Kong IPOs (initial public offerings) also show the characteristics of “hot hard technology, cold consumer sectors.”

To sum it up, today’s gong-ringing for Tong Shifu ended with the share price being cut in half, and it is not surprising at all. For investors, this case is also a lesson worth taking seriously: for a leader in a niche track, if it lacks sustained growth capability and a reasonable valuation, even with a high level of recognition, it may still be difficult to win long-term market acceptance.

Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Please verify before using. Any actions taken are at your own risk.

Cover image source: AIGC

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