There were 11 trading limits in 23 trading days, and the trading was suspended for verification twice due to abnormal fluctuations in stock trading. The recent stock price trend of Hunan Yujing Machinery Co.Ltd(002943) (002943. SZ) was called “evil spirit” by investors.
On December 27, Hunan Yujing Machinery Co.Ltd(002943) the verification ended and the trading resumed, and the trading limit continued to rise at the end of the day. The next day, the share price hit a new high of 63 yuan / share, but finally closed at the limit price. On December 29, the stock price opened low and fluctuated up. At noon, the closing price was 55.17 yuan / share, up 1.83%, and the dynamic P / E ratio exceeded 2100 times.
Behind the big rise, Hunan Yujing Machinery Co.Ltd(002943) is really so fragrant?
suspension verification can not stop the rise
In the second half of 2021, Hunan Yujing Machinery Co.Ltd(002943) shares showed some anomalies. For example, in July and August 2021, as shown in the figure below, there were two fluctuations of large-scale rise and rapid correction; Since then, after a long period of turbulent adjustment, there was a rapid and sharp rise in November. The share price soared from less than 20 yuan to the current highest point of 63 yuan, with an increase of more than 200%.
Image source: East Money Information Co.Ltd(300059)
Due to the abnormal fluctuation of stock trading in Hunan Yujing Machinery Co.Ltd(002943) recently, it was suspended for verification twice. The first suspension verification began on November 25, 2021 and resumed on December 2. However, the suspension verification could not stop the rise of the stock price. Shortly thereafter, the second suspension verification began on December 13 due to abnormal trading fluctuations, and the trading was not resumed until December 27. On the day of resumption, the stock price opened low and went high, and finally closed at the limit price.
According to the announcement on the results of stock trading suspension and resumption issued after hours on Hunan Yujing Machinery Co.Ltd(002943) December 24, the closing price of the company’s shares increased by 199.40% and the cumulative turnover rate was 329.23% for 25 consecutive trading days from November 8, 2021 to December 10, 2021. In the same period, the Shenzhen a index increased by 5.83% and the company’s dynamic P / E ratio reached 2162.62 times, The recent increase of the company’s share price is much higher than that of the same industry and its market, and there is a certain deviation between the recent share price and the company’s fundamentals.
performance changes after listing
On Hunan Yujing Machinery Co.Ltd(002943) November 29, 2018, the company made its initial public offering and listed for trading. The annual report showed that the annual operating revenue was 405 million yuan, and the net profit attributable to the shareholders of the parent company was 99 million yuan, an increase of 14.73% and 26.64% respectively over the previous year. however, in the second year after the IPO, the 2019 annual report handed over by Hunan Yujing Machinery Co.Ltd(002943) changed its performance.
In 2019, the operating revenue of Hunan Yujing Machinery Co.Ltd(002943) was 302 million yuan, a decrease of 103 million yuan or 25.43% over the previous year; The net profit attributable to the parent company was 14 million yuan, a decrease of 85 million yuan or 86.16% over the previous year. In 2020, although Hunan Yujing Machinery Co.Ltd(002943) operating revenue increased slightly, the net profit turned from profit to loss, and the annual net profit attributable to the parent company recorded – 5.98 million yuan. According to the third quarterly report of 2021, the net profit attributable to the parent company in the first three quarters was 1.9 million yuan.
Not only did the performance change after the listing, but the raised investment projects disclosed in Hunan Yujing Machinery Co.Ltd(002943) during the initial IPO also had the problem of delay. On August 2, 2021 Hunan Yujing Machinery Co.Ltd(002943) issued an announcement on the extension of the raised investment project, which showed that the net amount of funds actually raised in the first round was 398275600 yuan, which was planned to be used for “research center expansion project”, “multi wire cutting machine, grinding and polishing machine expansion project” and “intelligent equipment production project”. However, for various reasons, the three raised investment projects need to be postponed, and only 88.15% of the progress has been completed, of which the investment progress of the “research center expansion project” is only 65.75%.
Image source: Hunan Yujing Machinery Co.Ltd(002943) announcement
According to the announcement, the extension of the R & D center expansion project is affected by the needs of the company’s business integration and the epidemic situation. In order to revitalize the company’s stock assets and improve the company’s fund use efficiency, the company sells the original construction land of the project and changes the implementation mode of the project, The new R & D center building is changed to the combination of direct purchase of office buildings and use of office buildings already built by the company. Due to the change of implementation mode, the implementation progress of the project is later than expected. The delay of the other two raised investment projects was mainly affected by the covid-19 pneumonia epidemic and more rain in the first half of the year.
Hunan Yujing Machinery Co.Ltd(002943) at the same time, it said that the extension of the raised investment project did not change the content of project construction, total investment and implementation subject, would not have a significant adverse impact on the normal operation of the company, nor did it change or change the investment direction of raised funds in a disguised form and other circumstances that would damage the interests of shareholders.
increase and decrease of directors held by actual controllers
On November 16, 2021, Hunan Yujing Machinery Co.Ltd(002943) issued the A-share stock plan of non-public development banks, which plans to raise 342 million yuan, all of which will be used to supplement working capital and repay bank loans. The plan shows that the price of the non-public offering of shares is 17.10 yuan / share, which is no less than 80% of the average trading price of the company’s shares 20 trading days before the pricing benchmark date, and the number of shares issued is no more than 20 million. The shares subscribed by the object of this non-public offering shall not be listed for trading within 36 months from the date of completion of the offering.
The object of this stock issuance is Yang Jiawei, who is the controlling shareholder and the son of the actual controller of the company. At present, he is serving as the director and general manager of the company. After the completion of this offering, the company’s equity structure will change. The issuing object Yang Jiawei and his father Yang Yuhong will jointly control the listed company, and the two are the common actual controllers of the company. According to the upper limit of 20 million shares issued, after the issuance, Yang Yuhong’s 35.9639 million shares held by the company remained unchanged, accounting for 29.97% of the total share capital of the company after the issuance; Yang Jiawei holds 20 million shares of the company, accounting for 16.67% of the total share capital of the company after issuance. The two together hold 46.64% of the total share capital of the listed company.
According to the stock issuance plan, the listed company believes that this fund-raising is necessary. The company’s demand for working capital is increasing. Through this issuance to supplement working capital and repay bank loans, the company’s capital structure can be optimized to meet the capital needs brought by the company’s business development. At the same time, by maintaining a certain level of working capital, we can improve the anti risk ability of enterprises and avoid losing development opportunities due to capital shortage.
although the father and son of the actual controller planned to increase their shares by 342 million yuan, the two directors planned to reduce their shares before the lifting of the ban.
On November 10, 2021, Hunan Yujing Machinery Co.Ltd(002943) disclosed the shareholding reduction plan of director and deputy general manager Zhang Guoqiu. Zhang Guoqiu holds 4016250 shares of the company (accounting for 4.02% of the total share capital of the company), and plans to reduce the company’s shares by means of centralized bidding and block trading within 6 months after 15 trading days from the date of announcement and disclosure. As of the announcement date, Zhang Guoqiu’s shares in the company were still in the lock up period and would not reduce his shares until the restrictions on the sale of shares were lifted.
Only two days after the disclosure of Zhang Guoqiu’s share reduction plan, on November 12, Luo qunqiang, a director who holds 3916250 shares (accounting for 3.92% of the company’s total share capital), disclosed through the announcement of the listed company. He plans to reduce the company’s shares by means of centralized bidding and block trading within 6 months after 15 trading days from the disclosure date of the announcement. It is worth noting that the shares of the company held by director Luo qunqiang were also in the lock up period at that time.
A few days after the two directors and executives disclosed the reduction plan, on November 15, Hunan Yujing Machinery Co.Ltd(002943) issued the suggestive announcement on the listing and circulation of issued shares before the initial public offering, which will lift the ban on 46846375 shares, involving four shareholders, accounting for 46.8464% of the total shares of the company.
Image source: Hunan Yujing Machinery Co.Ltd(002943) announcement
The reduction plan has been announced and the ban on shares has been lifted. Then the reduction plan of Zhang Guoqiu and Luo qunqiang can be carried out normally. By December 27, Hunan Yujing Machinery Co.Ltd(002943) released the announcement on the results of stock trading suspension and resumption and the announcement on the reply to the letter of concern of Shenzhen Stock Exchange, which showed that the reduction plans of the aforementioned shareholders Zhang Guoqiu and Luo qunqiang were in progress. Zhang Guoqiu had reduced 874200 shares and Luo qunqiang had reduced 706200 shares.
(interface News)
