On February 24, A-Shares fell sharply across the board. As of the closing, the Shanghai stock index fell 1.7%, the Shenzhen Component Index fell 2.2%, and the gem index fell 2.11%. More than 4000 stocks in the two cities closed lower.
However, while the market fell so miserably, the well-known hot money Foshan Department is still actively increasing the market high standard Ningbo Construction Co.Ltd(601789) (601789. SH). According to the data of the dragon and tiger list released on the same day, the commonly used seats of Foshan Department Everbright Securities Company Limited(601788) Foshan Lvjing road topped the list of Ningbo Construction Co.Ltd(601789) buyers, with a purchase amount of 102 million yuan.
Foshan Department was once one of the most active funds in the market, with a large amount of funds. Although its selling frequency has decreased in recent years, it is still a “regular guest” on the list of individual stocks. The data show that before Ningbo Construction Co.Ltd(601789) , the stocks with a single listing amount of more than 100 million yuan in Foshan Department’s common seats this year include Yimikang Tech.Group.Co.Ltd(300249) (300249. SZ), Dongguan Winnerway Industry Zone Ltd(000573) (000573. SZ), Shanghai Kaibao Pharmaceutical Co.Ltd(300039) (300039. SZ), Hyunion Holding Co.Ltd(002537) (002537. SZ) and Hubei Radio & Television Information Network Co.Ltd(000665) (000665. SZ).
The Ningbo Construction Co.Ltd(601789) selected by Foshan Department this time has been focusing on building construction and related businesses since its establishment. It has a complete and compact industrial chain with building construction, municipal gardens and decorative curtain walls as the core, covering building scientific research, survey and mapping, engineering design, construction, installation, steel structure, commercial concrete, prefabricated building and so on. At the same time, Ningbo Construction Co.Ltd(601789) owns the construction and operation of the main data center of China Economic cloud, and its main customers include Tencent, Alibaba, Netease, iqiyi, etc.
In recent years, the net profit attributable to the parent company of Ningbo Construction Co.Ltd(601789) has continued to grow. In the first three quarters of 2021, the company achieved a net profit of 286 million yuan, a year-on-year increase of 67.03%. However, the share price of Ningbo Construction Co.Ltd(601789) has been weak for a long time since late July 2020. As of February 15 this year, its closing price was only 4.7 yuan / share.
On February 17 this year, the national development and Reform Commission and other departments jointly issued documents and agreed to start the construction of National Computing hub nodes in Beijing, Tianjin and Hebei, the Yangtze River Delta, Guangdong, Hong Kong, Macao, Dawan District, Chengdu, Chongqing, Inner Mongolia, Guizhou, Gansu and Ningxia, and planned 10 national data center clusters. So far, the overall layout design of the national integrated big data center system has been completed, and the “counting from the east to the west” project has been officially launched.
Benefiting from this, on February 16, Ningbo Construction Co.Ltd(601789) of a daily limit board was harvested, and then five one-stop boards were successively walked out. On February 24, the daily limit also continued to rise, successfully realizing seven consecutive boards, and the share price range rose by 95.11%.
As we all know, hot money often likes to hype individual stocks with hot topics. Foshan Department has invested heavily in Ningbo Construction Co.Ltd(601789) this time, and the probability is also interested in the stock, which is related to the popular theme of “counting East and counting West” in the market.
However, Ningbo Construction Co.Ltd(601789) in the announcement of abnormal stock trading fluctuations and risk tips issued on February 24, it was again emphasized that the company’s main business is the traditional construction industry, including housing construction engineering, municipal garden engineering general contracting and related professional subcontracting business. The company’s main business accounts for 100%, and so far, the main business has not changed.
Ningbo Construction Co.Ltd(601789) also said that the stock range of the company increased by 123.66% from February 7 to 24, with a large increase. During this period, the cumulative turnover rate of the company’s shares was 125.19%, which was significantly higher than the previous turnover rate of the company. At the same time, the latest dynamic P / E ratio of the company was 23.49 times and P / B ratio was 2.76 times, which were significantly higher than the level of Listed Companies in the same industry.
In addition, from the perspective of short-term game, before that, Ningbo Construction Co.Ltd(601789) had five consecutive one-sided boards, and the turnover rate during the period was very low. The turnover rate of the stock was 37.12% on February 24, which also means that at present, the stock still has a lot of profit margins, and the profit cushion of many funds is quite rich. Once the performance of Ningbo Construction Co.Ltd(601789) is slightly weak tomorrow, The funds inside are likely to rush away and form a huge selling pressure. Therefore, under the background of the sharp decline of the two cities, the risk of Ningbo Construction Co.Ltd(601789) peaking is self-evident.
All of these make it very uncertain whether the Ningbo Construction Co.Ltd(601789) of Foshan Department can retreat from the windward gamble.
