The wave of strong redemption of convertible bonds has lasted for more than two weeks. This week, another convertible bond was redeemed in advance – nuclear convertible bond.
Today is the registration day for the redemption of nuclear convertible bonds. Before the market closes at 15:00, it is the last opportunity to convert shares. The early redemption price of nuclear energy convertible bonds was 100899 yuan each, and the closing price on March 7 was 134.24 yuan each, with a large price difference.
If not redeemed in time, the maximum loss may be more than 20%. The holder must seize the time to operate and avoid loss.
Source: company announcement
operation time is only the last few hours
China National Nuclear Power Co.Ltd(601985) recently issued several announcements, suggesting that the nuclear energy convertible bonds will be redeemed in advance and reminding the holders to convert shares within the time limit.
The announcement shows that the registration date of redemption of nuclear energy convertible bonds is March 8, 2022, and the redemption price is 100899 yuan each. Before the closing of the market on the redemption registration date, the holders of nuclear energy convertible bonds can choose to continue trading in the bond market or convert them into shares of the company at the conversion price of 5.73 yuan per share.
After the market closes today, all nuclear energy convertible bonds that have not been converted into shares will be frozen and trading and equity conversion will be stopped. After the redemption, the nuclear convertible bonds will be delisted on the Shanghai Stock Exchange.
China National Nuclear Power Co.Ltd(601985) said that the redemption price of this convertible bond may be quite different from the market price of nuclear energy convertible bond, and specially reminded the holders to complete the transaction or share conversion before or on March 8, otherwise they may face large investment losses.
According to the data, as of the closing on March 7, the nuclear energy convertible bond closed at 134.24 yuan. Based on this calculation, if investors do not convert shares or sell them in time and the convertible bonds are forcibly redeemed, they will lose 33.34 yuan per share, with a loss ratio of more than 24%.
According to the conversion value, the loss is even greater. On March 7, China National Nuclear Power Co.Ltd(601985) closing price was 7.73 yuan, and the value of each nuclear energy convertible bond was about 134.90 yuan, slightly higher than the closing price of the convertible bond.
According to the data, as of the closing on March 7, the balance of nuclear energy convertible bonds still reached 441 million yuan, and the proportion of non convertible shares was 5.65%.
forced redemption tide is over
According to the data as of March 7, in addition to nuclear energy convertible bonds, shengtun convertible bonds will be redeemed in advance on March 17. At the closing on March 7, shengtun convertible bonds closed at 220.09 yuan, while the redemption price was 100044 yuan each. If the holder does not convert shares in time, he may also suffer great losses.
After the early redemption of shengtun convertible bonds, the tide of forced redemption of convertible bonds will come to an end. According to wind data, as of March 7, 74 convertible bonds were clearly not redeemed in advance.
China Securities Co.Ltd(601066) fixed income chief analyst Zeng Yu once analyzed whether the company chooses to redeem convertible bonds in advance, often considering a variety of factors. On the one hand, promoting the progress of share conversion, making room for refinancing by supplementing capital, reducing interest expenditure and shortening the service life of convertible bonds will promote the company to exercise redemption rights; On the other hand, if the controlling shareholders do not want the equity to be diluted, there are still a large number of convertible bonds that have not been converted into shares, and the centralized conversion of shares causes the sharp fluctuation of the company’s share price, the company may not redeem the convertible bonds in advance.
active compression valuation
Last week, the CSI convertible bond index fell 1.51% and the Shanghai index fell 0.11%. The convertible bond index lost the stock index and pointed to the simultaneous compression of the valuation of the convertible bond market. On March 7, the China Securities convertible bond index fell 2.05% to 407.52.
“Last week, the convertible bond market actively compressed the valuation, and the convertible bond index lost the stock index.” Zhou Guannan, chief analyst of fixed income of Huachuang securities, said.
Gf Securities Co.Ltd(000776) according to the analysis of Liu Yu, chief analyst of fixed income, the performance of positive stocks has been sluggish recently, and the overall risk appetite of the market has shifted downward under the environment of the continuous superposition of Russia Ukraine conflict and the intensification of stagflation expectation; The expectation of broad credit continues to rise, and the upward range of long-term interest rate is more obvious. “The opportunity cost of the convertible bond market was impacted, which suppressed the valuation level of the convertible bond market. In addition, the valuation impact of institutional reduction reappeared.” Liu Yu said.
Huatai Securities Co.Ltd(601688) research report suggests that at present, investors with low convertible bond positions can try to keep a slightly aggressive attitude, but those with high equity positions should reduce their positions at high prices, and the selection of bonds should continue to focus on the absolute price, while avoiding the hot fried target, high priced and highly valued individual bonds and medium and large varieties with redemption risk.
Zhou Guannan said that in terms of convertible bonds, it is suggested to pay attention to the steady growth sector, such as the steady growth industrial chain such as real estate and the new infrastructure industrial chain such as digital economy and new energy; We can also pay attention to the opportunities after the adjustment of leading coupons in the industrial chain such as green power, new energy vehicles and semiconductor chips.
