The enthusiasm of institutions to participate in the fixed growth of listed companies continued to rise. Since this year, many public and private institutions such as Huaxia Fund, CAITONG fund and Gaoyi assets have frequently “teamed up” to participate in fixed growth. However, even if the discount during participation provides a certain “safety cushion”, with the market adjustment, the latest share prices of many companies have been lower than the additional offering price, and many participating institutions have temporarily suffered floating losses. Industry insiders believe that participating in fixed growth in volatile cities is still a better means to obtain excess returns, but we need to be more cautious about the selection of individual stocks.
“discount” provides safety pads
Recently, Mianyang Fulin Precision Co.Ltd(300432) ( Mianyang Fulin Precision Co.Ltd(300432) ) issued an announcement, issuing about 66.58 million new shares to specific objects, raising a total of about 1.5 billion yuan. Many investment institutions participated in the bidding subscription. The largest number of shares were allocated to CAITONG fund and Nord fund, with 14.51 million shares and 9.43 million shares respectively, with an amount of 327 million yuan and 212 million yuan respectively.
Previously, the fixed increase of Fu Jian Anjoy Foods Co.Ltd(603345) ( Fu Jian Anjoy Foods Co.Ltd(603345) ), the leader of quick-frozen food, was implemented, which attracted the public offering participation of China Europe Fund, South Fund, Harvest Fund, Wells Fargo fund, CAITONG fund, Hua’an fund, Hongde fund and other companies The fixed increase results disclosed in Shanghai Xuerong Biotechnology Co.Ltd(300511) ( Shanghai Xuerong Biotechnology Co.Ltd(300511) ) show that public funds such as Huaxia Fund and CAITONG fund have been allocated.
Since this year, public funds have actively participated in fixed growth. Data show that as of March 17, 27 public funds have participated in the fixed growth of A-share listed companies this year, with a total scale of more than 14 billion yuan. Among them, CAITONG fund, Nord fund and Nanfang Fund ranked among the top three in the fixed increase scale of public offering participation. CAITONG fund, known as the “king of fixed growth” in the industry, has held two funds after 12 months of growth in domestic demand and 6 months of steady progress and return. It has participated in the fixed growth projects of more than 10 listed companies such as Northern Copper ( Nafine Chemical Industry Group Co.Ltd(000737) ), Baotailong New Materials Co.Ltd(601011) ( Baotailong New Materials Co.Ltd(601011) ).
The safety cushion provided by “discount” is one of the reasons why institutions actively participate in the fixed increase. However, affected by the stock price adjustment in the secondary market, the discount rate of fixed increase issuance of shares of many listed companies is not high recently. The recent data shows that investors have participated in 10 price increases, with a discount rate of more than 24%.
In this regard, industry insiders said that when the volatile market participates in fixed growth, stocks with low discount rate should be avoided. “The low discount rate often means that the short-term stock price is overheated. In addition, since it is a volatile market, it also means that the advantage over the purchase in the secondary market is not obvious.” Sun Jianbo, general manager of China reading capital, said.
carefully select individual stocks
Recently, many institutions have obtained rich returns or floating profits through fixed growth. For example, the latest share price of Capitalonline Date Service Co.Ltd(300846) ( Capitalonline Date Service Co.Ltd(300846) ), the leading stock of “counting East and counting West”, has soared by more than 60% compared with the additional issue price, and the CAITONG fund and Nord fund participating in the fixed increase have made a lot of money; Huaxia Fund, CAITONG fund, Beijing Yi’an capital and other institutions participated in the fixed increase of Shenzhen Forms Syntron Information Co.Ltd(300468) ( Shenzhen Forms Syntron Information Co.Ltd(300468) ), and the latest share price increased by nearly 30% compared with the additional issue price.
However, there are still many institutions involved in fixed growth, resulting in floating losses. For example, Gao Yi asset, a well-known private placement institution, and Ge Weidong, a private placement boss, participated in the fixed increase of Yonyou Network Technology Co.Ltd(600588) ( Yonyou Network Technology Co.Ltd(600588) ), with an additional issue price of 31.95 yuan / share, and the closing price fell to 25.43 yuan / share on March 17. Gaoyi Xiaofeng No. 1 Ruiyuan securities investment fund and Gaoyi Xiaofeng No. 2 letter fund under Gaoyi assets were allocated a total of 125196 million shares, with a total floating loss of about 82 million yuan; Ge Weidong was allocated 6.2598 million shares, with a total floating loss of about 41 million yuan. In addition, the Maccura Biotechnology Co.Ltd(300463) ( Maccura Biotechnology Co.Ltd(300463) ) in which Gaoyi asset participated in the fixed increase also suffered a 6% floating loss. On the whole, in the fixed increase projects since this year, about half of the stock subscription institutions have suffered floating losses.
Although the recent market volatility is large, in the view of institutional investors, fixed growth is still a better means to obtain excess returns in the volatile market. Sun Jianbo said: “Fixed value-added companies generally have two characteristics. One is that the injection of fixed value-added funds has greatly improved the financial quality of listed companies. The other is that fixed value-added companies have specific raised investment projects. If there are more extreme situations, the breaking of fixed value-added shares is not ruled out. However, since the company’s financial improvement and growth prospects are clear after the success of fixed value-added, the breaking is generally a temporary phenomenon. Even if the market continues to adjust, it may not be more difficult than the” 20% discount “fixed value-added Preferential large-scale position building opportunities. In volatile market conditions, it is still a better strategy to participate in listed companies with growth prospects through fixed increase and discount. “
However, the strategy of participating in fixed growth in the volatile market is not applicable to short-term overheated stocks. In particular, it is necessary to avoid the situation that stocks are “abandoned” by the market before the end of the lock-in period. Sun Jianbo said that when selecting the target, we should pay more attention to the business planning, operating income growth expectation and profit expectation of Listed Companies in the next two years, especially the development expectation of fixed increase raised investment projects in the next two years.
