On the evening of February 27, Sino Biological Inc(301047) released the profit distribution plan for 2021: the company plans to convert 10 shares into 9 shares and pay out 100 yuan (including tax). The company’s net profit decreased by 36.15% year-on-year, but it received large dividends and high share conversion. Why?
Affected by this, on February 28, Sino Biological Inc(301047) opened 8.18% higher. As of the close, Sino Biological Inc(301047) closed at 352 yuan, up 5.78%, with a turnover of 521 million yuan.
Sino Biological Inc(301047) annual report shows that in 2021, the company achieved operating revenue of 965 million yuan, a year-on-year decrease of 39.53%, including non covid-19 virus related business revenue of 359 million yuan, a year-on-year increase of 41.41%; The net profit attributable to shareholders of listed companies was 720 million yuan, a year-on-year decrease of 36.15%.
Sino Biological Inc(301047) said that the decline of the company’s overall performance in 2021 was mainly due to covid-19 virus related businesses, which maintained sustained and rapid growth due to changes in the epidemic situation, prevention and control policies, market competition and other factors.
Compared with the results of the annual report, Sino Biological Inc(301047) profit distribution and the plan of converting capital reserve into share capital attract more attention. According to the announcement, the company plans to pay out 100 yuan (including tax) for every 10 shares, totaling 680 million yuan; And convert 9 shares for every 10 shares to all shareholders.
Cash out of 10 shares is 100 yuan (tax included), chasing Kweichow Moutai Co.Ltd(600519) .
Sino Biological Inc(301047) is a biotechnology company engaged in the R & D, production, sales and technical services of biological reagents. Its main business includes products such as recombinant proteins, antibodies, genes and culture media, as well as services such as the development of recombinant proteins and antibodies and biological analysis and detection.
In recent years, the global epidemic has continued to spread. A series of biological reagent products such as virus related proteins and antibodies have been purchased by customers outside China, and the business performance has increased significantly. Among them, in 2020, the company’s revenue and net profit attributable to the parent company increased by 7.83 times and 29.97 times respectively.
Sino Biological Inc(301047) 2021 was listed on August 16, with the issue price of 292.92 yuan, and the highest price at the initial stage of listing was 699.38 yuan. The share price reached 308.90 yuan in more than two months, approaching the issue price Sino Biological Inc(301047) listed for half a year, the share price continued to fall from the high level, which is similar to the trend of many high priced new shares on the science and innovation board and gem.
Sino Biological Inc(301047) 2021 annual net profit decreased by 36.15% year-on-year. Why did you launch large dividends and high conversion
Lai Xubo, general manager of Shenzhen new mileage, believes that the performance of Sino Biological Inc(301047) fell by more than 36% last year and still launched the profit distribution plan of 100 yuan (including tax) from 10 shares to 9 shares, which is mainly due to the high share price and small share capital of Sino Biological Inc(301047) shares Sino Biological Inc(301047) take advantage of market rules to split shares and improve liquidity. It is proposed to convert 10 shares into 9 shares and distribute cash dividends of 100 yuan (including tax). The total amount of dividends in 2021 reached 680 million yuan, of which about 50% of the cash dividends were paid into the pockets of the controlling shareholders. “Secondary new shares with high shareholding ratio of major shareholders, small share capital and high share price may also launch a plan for high transmission and transfer of annual reports in the future.” He believes that Sino Biological Inc(301047) high dividend and high transfer scheme are remarkable, which is equivalent to an advertisement for listed companies! It is worth noting that the essence of the high transfer of listed companies is the division of share capital, and the high growth of enterprise performance is the key to supporting the stock price. If the share price has been overdrawn for many years and the performance has declined, the high transfer risk of such stocks is huge, and investors need to guard against the risk of high transfer speculation.
Senior insiders pointed out that Sino Biological Inc(301047) last year’s net profit was 720 million yuan, a year-on-year decrease of 36.15%; Earnings per share fell from 22.11 yuan in 2020 to 12.71 yuan in 2021, and the price earnings ratio rose from 17 times when it was just listed to 32 times Sino Biological Inc(301047) last year’s performance declined, and the company still launched 10 shares to 9 shares with 100 yuan (tax included). Obviously, the company tried to expand its share capital through high transfer and reduce the price per share by using ex right, so as to attract retail investors and increase market liquidity. ” Sino Biological Inc(301047) through high transfer, it may be able to stimulate the stock price in the short term, but in the long run, investors need to be cautious in participating in speculation.”
