In the five trading days since the opening of the year of the tiger, there have been five trading limits for stocks, and 17 consecutive trading limits have been staged before the Spring Festival. It can be called the first "demon stock" in the year of the tiger! This stock is Huitong group.
Behind the sharp fluctuations, the trading seats of longhubang are basically the seats of the business department of securities companies. The company also issued seven risk warning announcements to remind investors that the company's stock price has seriously deviated from the company's fundamentals.
5 + 17 = 22 limits, the share price soared 761%!
On December 31, 2021, the last trading day of 2021, Huitong group was listed on the main board of Shanghai Stock Exchange at the issue price of 1.70 yuan, and then pulled 17 trading limits. After the trading limit was opened, it fluctuated and fell for a time.
However, since the opening of the market in the year of the tiger, Huitong group broke out again, pulling five trading limits in a row, pushing the trading limit to a climax. From the issue price of 1.7 yuan to the latest closing price of 14.64 yuan on February 12, Huitong group's share price soared 761%.
As of the closing on February 12, the circulation market value of Huitong group was 1.708 billion yuan, with a total market value of 6.832 billion yuan.
At the time of frequent breaking of new shares, why did Huitong group perform so strongly? Some market analysts believe that the issuance price of Huitong group is absolutely low and is hyped by funds. Secondly, the stock is a capital construction stock, catching up with the hot spot of recent market speculation.
According to the analysis, the regional advantages of national policy support are prominent, with excellent performance and orders in hand of more than 2.1 billion yuan. The construction project of xiong'an new area participated by the company has become an important part of business performance.
It is reported that Huitong group's main business is highway, municipal, housing construction and related building materials sales, survey and design, test and testing, etc.
From 2018 to 2020 and from January to September 2021, the operating revenue of Huitong group was RMB 1.620 billion, 2.407 billion, 2.398 billion and 1.687 billion respectively, and the net profit was RMB 26.0398 million, 90.594 million, 96.3419 million and 72.5379 million respectively.
seven consecutive gold medals, company emergency risk warning
According to China Fund News, in the face of the fierce rise in share prices, Huitong group itself could not sit still and issued seven risk warning announcements in a row in an attempt to curb excessive speculation.
Huitong group said that after the company's self-examination and verification with the controlling shareholder and actual controller, as of the disclosure date of this announcement, there was no material information that should be disclosed but not disclosed.
At present, the company's stock price has seriously deviated from the company's fundamentals, which is also significantly higher than the industry average level, and there is a risk of high valuation.
And there are many risks:
Impairment risk of accounts receivable and contract assets: in the fourth quarter of 2021, the recovery of accounts receivable of the company was less than expected, especially the poor collection of some long-term aging projects, resulting in a significant increase in the provision of impairment losses. At present, it is estimated that after considering the impact of income tax, the annual asset impairment in 2021 accounts for 10% ~ 20% of the company's net profit attributable to the parent company in 2020, which has a significant impact on the performance.
Risk of performance decline: it is expected that the performance in 2021 will decline compared with that in 2020. The specific business data are being audited and will be disclosed in detail in the annual report. Please pay attention to the trading risks in the secondary market, make rational decisions and invest prudently.
Risk of price fluctuation of raw materials: from 2018 to the end of September 2021, the direct material cost of construction projects undertaken by the company accounted for 50.11%, 55.55%, 50.44% and 52.83% of the total cost of the company's construction business respectively, accounting for a relatively high proportion. Although the company has some measures to prevent the cost increase caused by the price fluctuation of raw materials, these measures may not fully compensate for the cost increase caused by the price fluctuation of raw materials, and the company faces the risk of price fluctuation of raw materials.
