Intco Medical Technology Co.Ltd(300677) once soared with the performance of disposable gloves, but now it is difficult to ride a tiger.
On February 17, Intco Medical Technology Co.Ltd(300677) announced that the company plans to sign a partnership investment agreement with Guoyue Junan and others, in which Intco Medical Technology Co.Ltd(300677) will subscribe 10 million yuan as a limited partner (LP) of the partnership.
The reporter inquired about the announcement and found that this is the third time that Intco Medical Technology Co.Ltd(300677) has signed an investment agreement since February this year. On February 7, the company invested in Wuxi shangxianhu Boshang investment partnership with its own funds, and subscribed 300 million yuan; On November 11, its wholly-owned subsidiary in Singapore planned to sign a subscription agreement with Warburg Pincus capital and subscribed US $100 million.
As of the closing on February 17, Intco Medical Technology Co.Ltd(300677) shares closed at 53.18 yuan / share, up 3.06%.
capacity surplus
Since the outbreak of covid-19 epidemic, the disposable gloves industry has increased sharply.
Intco Medical Technology Co.Ltd(300677) as a large supplier of disposable gloves, when the demand for products soared, the performance took a rocket and made a lot of money.
According to the data, Intco Medical Technology Co.Ltd(300677) 2020 achieved an operating revenue of 13.837 billion yuan, a year-on-year increase of 564.29%; The net profit reached 7.007 billion yuan, a year-on-year increase of 3829.56%. Previously, from 2017 to 2019, its operating revenue reached 1.75 billion yuan, 1.893 billion yuan and 2.083 billion yuan respectively, and its net profit was only 145 million yuan, 179 million yuan and 178 million yuan respectively.
In just one year, its net profit increased by nearly 48 times and the company’s revenue increased by 7 times. With such a sharp rise in performance, Intco Medical Technology Co.Ltd(300677) began to expand production capacity.
It is reported that by the end of 2020, Intco Medical Technology Co.Ltd(300677) can achieve an annual output of 36 billion disposable non latex gloves, compared with 19 billion in 2019.
However, according to the recent interactive news of the investment platform, Intco Medical Technology Co.Ltd(300677) said that by the end of December 2021, its total annual production capacity of disposable gloves was 75 billion, including 45 billion Disposable Nitrile Gloves and 30 billion disposable PVC gloves.
Based on this calculation, the production capacity of Intco Medical Technology Co.Ltd(300677) has nearly quadrupled in two years. At present, Intco Medical Technology Co.Ltd(300677) is still expanding its production on a large scale. If all the expansion plans are implemented smoothly and mass production is expected, its annual production capacity will exceed 200 billion.
The production capacity has quadrupled in two years, so can it be digested only by Intco Medical Technology Co.Ltd(300677) itself?
It should be noted that even in such a special year as 2020, the growth rate of glove sales is still the same. According to the annual capacity of 36 billion, the capacity utilization rate is only 66.78%.
As for the digestion of production capacity, Intco Medical Technology Co.Ltd(300677) has repeatedly said that the company’s PVC gloves and nitrile gloves have been in full production and full sales. But at the same time, it is also admitted that if there are various adverse situations such as sudden changes in the market environment and poor management of the company in the future, the company’s planned production capacity may not be fully digested.
At the same time, Intco Medical Technology Co.Ltd(300677) faces strong opponents. Top glove, a Malaysian glove manufacturer, is the world’s largest manufacturer of rubber gloves, with an annual glove production capacity of 100 billion, about double that of Intco Medical Technology Co.Ltd(300677) .
According to the official introduction of Intco Medical Technology Co.Ltd(300677) , at present, it costs about 8 million yuan to build a new generation of disposable PVC glove double hand mold production line, and 20-25 million yuan to build a disposable nitrile glove double hand mold production line, and the average cycle of the whole construction process will be as long as 12-18 months. The investment in the construction of the production line alone is undoubtedly a huge investment.
In addition, Intco Medical Technology Co.Ltd(300677) currently has a single business revenue, almost all of which rely on personal protective equipment. According to the 2021 interim report data, its personal protection income reached 10.490 billion yuan, accounting for 98.27% of the total income.
Meanwhile, in the second half of 2021, as the epidemic situation eased, Intco Medical Technology Co.Ltd(300677) performance growth also began to slow down. According to the third quarter report of 2021, its single quarter revenue was 2.972 billion yuan, a year-on-year decrease of 33.88%, and its net profit was 1.063 billion yuan, a year-on-year decrease of 56.61%.
share price pressure
According to public information, Intco Medical Technology Co.Ltd(300677) was established in July 2009 and headquartered in Zibo, Shandong Province. It was changed and established by Zibo Intco Medical Technology Co.Ltd(300677) Products Co., Ltd. Its main business covers disposable gloves, wheelchairs, cold and hot compress, electrode pieces and other types of nursing products, among which disposable gloves are the core business. At present, it has become the second largest supplier of disposable protective gloves in the world and the largest supplier of disposable protective gloves in China.
The stock price soared from the title of “300.76 yuan / share” in July 2020 to the title of “300.99 yuan / share”, which was the highest in the market in July 2021}.
However, in the capital market in 2021, “glovegrass” did not show its skills. On the contrary, its share price began to fall all the way. According to the data, its share price has fallen from 197.99 yuan / share in January 2021 to 48.91 yuan / share in November, a decline of 75.29%. Except for the dividend payment of 0.3 yuan / share in April 2021, the share price has no upward momentum.
The market value of “glove Mao”, which had previously exceeded 100 billion yuan, is now only 29.226 billion yuan, and the market value has evaporated by more than 70 billion yuan.
During the continuous evaporation of market value, the large reduction of the chairman’s holdings also aroused a lot of dissatisfaction from investors.
In June 2021, Intco Medical Technology Co.Ltd(300677) announced the pre reduction of its controller and director Liu Fangyi, saying that it would reduce no more than 21755500 shares within six months from June 24, 2021 to December 24, 2021, accounting for 6% of the total share capital.
It should be noted that according to the relevant provisions of listed companies, the total number of shares reduced by major shareholders of listed companies through competitive trading (secondary market) in the exchange within three months shall not exceed 1% of the total number of shares of the company.
Therefore, as soon as the pre disclosure announcement of holdings reduction was made, the market suddenly blew up. Under Liu Fangyi’s previous microblog, many shareholders denounced it. The day after the announcement, the share price of Intco Medical Technology Co.Ltd(300677) plunged by 20%.
However, in the face of the dissatisfaction of many investors, Liu Fangyi also sent a microblog on June 2, 2021, saying that he did not want to explain too much. However, Liu Fangyi positioned the microblog at Xinhua villa not far from Intco Medical Technology Co.Ltd(300677) headquarters, which is a luxury villa of 250000 yuan per square meter.
As a result, angry investors raised another voice of abuse in their microblog comment area, believing that Liu Fangyi was lying cutting leeks in a 25 square meter villa. More netizens joked that “it created a precedent for the chairman to open microblog to cut leeks”.
According to media statistics, from July 9 to July 30, 2021, Intco Medical Technology Co.Ltd(300677) actual controller Liu Fangyi reduced a total of 10965100 shares, accounting for 2.9933% of the total share capital of the company, and the accumulated cash out reached 1.219 billion yuan. In addition, other “directors, supervisors and senior managers” who plan to reduce their holdings at the same time also plan to reduce the number of 45000 to 86000 shares, with a total cash out of more than 25 million.
In January 2022, the chairman of Intco Medical Technology Co.Ltd(300677) issued a letter of commitment, stating that he would not reduce any shares of the company from January 12, 2021 to June 30, 2023. In the view of market analysts, this is undoubtedly the latest action to save the falling stock price, but the result is that the stock price began to fall again after a short recovery.
In addition, as of June 30, 2021, its institutional positions were still 274, but as of December 31, 2021, its institutional positions were only 9.
