The recent continuous decline of Hemai shares is casting a shadow on the breaking of the most expensive new shares.
On February 10, the most expensive new share, Hemai shares, once plunged 12% to 576.2 yuan, closing at 594 yuan, down 9.46%, a new low since its listing. This means that with only a further decline of about 7%, Hemai shares will fall below the issuance price of 557.8 yuan, and the “breaking alarm” has been sounded.
In fact, the highest price of 824 yuan has not been seen in more than a month since the completion of the gorgeous debut of Hemai shares, and it has continued to decline recently. As of February 10, the total market value of Hemai shares was 23.76 billion yuan, which had evaporated 5.2 billion yuan compared with the first day of listing.
The stock price is weak, but the valuation shouted by institutions is not low. Previously, several sellers, such as Tianfeng Securities Co.Ltd(601162) , Dongxing Securities Corporation Limited(601198) , China International Capital Corporation Limited(601995) , gave a target price of more than 800 yuan. On February 8, Citic Securities Company Limited(600030) gave a target price of 1000 yuan. It is worth noting that Citic Securities Company Limited(600030) is not only the lead underwriter of the IPO of Hemai shares, but also fully underwritten 650000 abandoned shares of Hemai shares. In addition, it also conducted follow-up investment through its subsidiary China securities investment, with a floating profit of more than 140 million yuan on the first day.
The recognition of the core technology, the golden track and the company’s profitability of Hemai is an important reason why institutions are optimistic about Hemai. On January 27, the performance pre increase announcement of Hemai shares showed that the company expected to realize a net profit attributable to the parent company of 180-215 million yuan in 2021, with a year-on-year increase of 72.90% – 106.52%, which responded to the expectations of the institution to some extent.
For the sharp decline of Hemai shares today, some investors said in wechat group, “CITIC just shouted 1000 yuan. It’s too embarrassing to have a sharp fall today.” “it’s too cold at high altitude, and the collective of high-priced stocks was hammered, which taught a profound lesson.” “fortunately, I can’t afford it, otherwise I’m the one who tangles with breaking hair today.”.
4 securities companies give an average overestimation of more than 900 yuan
Since the beginning of 2022, Hemai shares have been falling in shock. It is noteworthy that despite the poor performance of the current stock price of Hemai shares, many securities analysts still give an overvalued value of more than 800 yuan. The most controversial one is the high price of 1000 yuan (corresponding to 80 times PE) given by Citic Securities Company Limited(600030) on February 8. Citic Securities Company Limited(600030) said that the EPS of the company in 2021-23 is expected to be 4.93/12.47/22.50 yuan respectively.
As for the reasons for the high valuation, Citic Securities Company Limited(600030) said that the company is deeply engaged in the field of component power electronics. It is a leading manufacturer of micro inverters in the world. Its products have the advantages of cost, applicability, performance and reliability, outstanding cost performance competitiveness, and continues to expand its sales network and customer base, with rapid business growth. The company accelerated the production expansion of micro inverter and DTU, improved technical strength and profitability, promoted the industrialization of energy storage inverter and other businesses, and strengthened the synergy of industrial chain.
It is worth noting that Citic Securities Company Limited(600030) is not only the lead underwriter of the IPO of Hemai shares, but also fully underwritten 650000 abandoned shares of Hemai shares. In addition, Citic Securities Company Limited(600030) also conducted follow-up investment through its subsidiary China securities investment, with 200000 shares allocated and the amount allocated (excluding Commission) of 112 million yuan. Based on this calculation, Citic Securities Company Limited(600030) has obtained 851400 shares of Hemai shares, with a total cost of 475 million yuan.
In addition, the target price was given earlier by Tianfeng Securities Co.Ltd(601162) . In the research report released on January 24, Tianfeng Securities Co.Ltd(601162) gave the target price of 836 yuan for Hemei shares, while at that time, the price of Hemei shares was 694.49 yuan. Tianfeng Securities Co.Ltd(601162) said that it is expected that the company’s profits in 21-23 years will be RMB 190 / 4.2 / 780 million respectively, giving 80 times PE in 22 years (corresponding to 33.6 billion market value, enphase108 billion, 90 times PE) and “buy” rating.
On January 25, the next day, the share price of Hemai soared to 711.1 yuan, Dongxing Securities Corporation Limited(601198) gave an overvalued value of 903.2 yuan and an overweight rating. Dongxing Securities Corporation Limited(601198) said that Hemai shares has two core competitive advantages and is expected to benefit from the industry trend of micro reverse market expansion and domestic substitution.
China International Capital Corporation Limited(601995) covered the stock for the first time on February 7 and gave it a rating of “outperforming the industry”, with a target price of 872 yuan, corresponding to 45 times the P / E ratio in 2023. Optimistic about module level power electronics (mlpe), the golden track of photovoltaic manufacturing, the advantages of the company’s Micro reverse product technology, cost and profitability, as well as the stability of the technical team and high market sensitivity are the investment views given by China International Capital Corporation Limited(601995) .
In this way, the average target price given by the four institutions to Hemai shares has reached 902.8 yuan.
CITIC’s floating profit on the first day of listing exceeded 140 million
Since the inquiry, Hemai shares has been accompanied by a high degree of topics, mainly due to its issuance price of 557.8 yuan and 225.94 times the issuance price earnings ratio, so it is called “the most expensive new share”.
You naturally have your troubles. Before listing, many investors were worried about whether the Hemai shares with such high valuation would be broken on the first day of listing. This also led to the abandonment of a total of 360 million yuan and 650000 shares in the subscription of new shares, setting a new record of the abandonment amount of Kechuang board, and all these abandoners were online investors.
However, at that time, the “turnaround” of Hemai shares was very beautiful. It rushed to the highest price of 824 yuan in less than half an hour on the first day of listing, closing up 29.98% and closing at 725.01 yuan. Not only did the successful investors earn more than 80000 yuan per signing, but many institutions also made millions of floating profits on the same day. As the underwriter of follow-up investors and abandoned shares, Citic Securities Company Limited(600030) had a floating profit of more than 140 million yuan on that day.
when will Hemai break through?
Different from individual investors, many institutions have always been firm bullies of Hemai shares. So far, many public offering products, including Dacheng Fund, BOCOM Schroeder, Da Mo Huaxin Fund and South Fund, have heavily invested in Hemai shares.
Moreover, in the inquiry stage of new shares, the weighted average of the quotation of the fund management company is also the highest among all effective offline investors, reaching 605.92 yuan / share; Followed by securities companies, with a weighted average of 566.75 yuan / share; In addition, the weighted number of shares of the company’s private equity fund or futures fund has reached 559.9 yuan.
It is worth noting that at that time, many head institutions that were eliminated because they were “lower than the issuance price” also had their quotations of more than 530 yuan.
On January 27, Hemai also issued a performance pre increase announcement, saying that the company expects to realize a net profit attributable to the parent company of 180-215 million yuan in 2021, with a year-on-year increase of 72.90% – 106.52%. It also seems to respond to the high expectations of institutions for their profitability.
What will be the future market of Hemai shares, which opened high on the first day of listing?
