Upon morning market opening, the stock price shot up by 23.33 percent, standing at 11.47 yuan per share. It closed the day up 25.27 percent at 11.65 yuan.

The soaring price soaring best demonstrated the market's attention and affirmation, or, more precisely, optimism about Star Cable's future performance, which might be attributed to the following reasons.

Unlike regular cable companies focusing on the power grid market, Star Cable differentiates itself by specializing in the petrochemical industry.

A first-class supplier for Chinese oil giants PetroChina Co. Ltd. (601857.SH), China Petroleum & Chemical Corp. (600028.SH) and China Oilfield Services Ltd. (601808.SH), sales revenue created from the petrochemical industry accounted for as much as 57 percent of total sales revenue in fiscal year 2011, with a consolidated gross market profit of 29.02 percent, revealing a distinct competitive advantage when compared to the industry average of 16.3 percent.

Instead of the proxy sales model the cable industry generally implements, Star uses a direct sales business model, which ensures maximum interests by virtue of shortened remittance period and stability of sales force, thus avoiding turning itself into a mere processing center.

As disclosed in the prospectus, funds raised in the current round are designated for projects in new energy and submarine cables, which is expected to deliver strong profitability, as driven by rapid growth in demand from downstream industries.

Net profit is estimated to realize a compound growth rate of 22 percent, achieving 1.66 billion yuan, 2.05 billion yuan and 2.43 billion yuan, respectively in the following 3 years with corresponding fully diluted EPS of 0.48 yuan, 0.59 yuan and 0.7 yuan, according to Sinolink Securities.

Yet, a risk warning should not be neglected.

Performance is hugely dependent on large customers, as a result of its relatively monotonous client structure in which CNPC alone contributed 47 percent of total revenue in fiscal 2011.

Violent copper price fluctuations as well bring the risk of inventory devaluation since copper rods account for more than 80 percent of the company's product cost.