Under the repeated trend of a shares, 11 new shares were listed this week (March 21 to 25), of which 2 broke on the first day, accounting for 18%. It is worth noting that the trend of Shanghai and Shenzhen fluctuated more in 2022. Since this year, 80 new shares of A-Shares have been listed, of which 15 broke on the first day, accounting for 19%.
Two new shares broke on the first day of this week
A total of 11 new shares were listed this week, and 2 broke on the first day.
On March 23, Shouyao Holdings (688197) and Heshun Technology (301237) collectively landed in the A-share capital market. However, they both encountered the embarrassment of breaking the opening. Among them, Shouyao holdings once fell more than 20%, closed down 19.52% on the same day, and Heshun technology closed down 5.63%. If calculated according to the intraday low on the first day of listing, China first Pharmaceutical Holdings and Heshun technology lost 4650 yuan and 3845 yuan respectively.
The first drug holding company, founded in 2016, is mainly engaged in the research and development of innovative drugs. It has 22 research varieties, all of which are a new class of drugs, covering non-small cell lung cancer, colorectal cancer, liver cancer, breast cancer and diabetes. It is worth noting that at present, Shouyao holding has no drugs approved for marketing, and its core products are in the research stage with fierce competition; Not yet profitable, and the amount of loss is accumulated year by year.
According to the prospectus of Shouyao holdings, the net profits from 2018 to 2020 were -123485 million yuan, - 396082 million yuan and -330 million yuan respectively. According to the recently disclosed financial report, Shouyao holdings achieved an operating revenue of 130325 million yuan and a net profit of - 146 million yuan in 2021.
Heshun technology, a new share listed and broken on the same day, is a high-tech enterprise focusing on the R & D, production and sales of differentiated and functional biaxially stretched polyester film (BOPET film). The company's main products include colored photoelectric base film, transparent film and other functional films.
The best performing new shares on the first day of this week were Huarong chemical (301256) listed on March 22.
Huarong chemical is an advanced enterprise committed to the green recycling and comprehensive utilization of potassium hydroxide. Its main product is potassium hydroxide. Today, the company's products are widely used in basic industries such as daily chemicals, pesticides, medicine and food additives, as well as emerging industries such as new energy, electronic information and high-end water-soluble fertilizer. On the first day of listing, the closing price rose by 82.73%. According to the closing price, the first signing earned 3330 yuan.
In addition, Xingtong shares (603209) listed this week closed at a limit of 44% on the first day. The company is mainly engaged in the water transportation of China's coastal bulk liquid chemicals and refined oil. It is a leading enterprise in China's private coastal bulk liquid chemicals shipping industry. Large refining and chemical enterprises are its main downstream customers, including China Petroleum & Chemical Corporation(600028) , Fujian United Petrochemical, Zhejiang Petrochemical, CNOOC, and other enterprises. In 2021, the company achieved a revenue of 567 million yuan and a net profit of 199 million yuan, with a year-on-year increase of 61%.
Unprofitable new shares burst intensively
It is worth noting that the first drug holding has not yet made a profit and finally broke on the first day. Throughout this year, many unprofitable new shares have broken on the first day. With the recent increase of market volatility, the market has always been worried about such unprofitable high-priced new shares.
Since this year, a total of five unprofitable new shares have broken on the first day, including Aojie technology, Maiwei biology, Yahong medicine, Shouyao holdings and Geling Shentong. "The first share of baseband chip" Aojie technology landed on the science and Innovation Board on January 14 this year, with an issue price of 164.54 yuan, a sharp drop of 33.75% on the first day of listing, which is also the largest decline in the first day of new shares listed this year.
So far this year, seven unprofitable new shares that landed in A-Shares in 2022 have been broken. Among them, Aojie technology, Maiwei biology and Yahong medicine have fallen by 56.54%, 40.2% and 39.73% respectively since their listing, ranking first in the decline list of new shares this year.
According to the analysis of market participants, in addition to profitability, high pricing is the main inducement for the breaking of new shares. In addition, since this year, under the superposition of Russian Ukrainian military conflict and the deep correction of concept shares, the fluctuation of A-Shares has increased, which has also affected the market performance after the listing of new shares to a certain extent.
This year, the Shanghai Composite Index fell 11.75%, the Shenzhen composite index fell 18.74% and the gem index fell 20.61%. Especially since March, affected by the epidemic and the turbulent situation in Russia and Ukraine, A-share panic has increased. The gem index fell 8.45%, the Shanghai index fell 7.22% and the Shenzhen Component Index fell 10.28%.
China Securities Co.Ltd(601066) pointed out that investors are advised to give reasonable valuations to unprofitable biomedical enterprises and companies with over priced but weak substantive scientific and technological attributes, and actively participate in the IPO of enterprises with new normal pricing.
With the depth adjustment of a shares, as of the closing on March 25, 34 of the 80 new shares listed this year have broken, accounting for 43%. In terms of the increase list, among the new shares listed this year, the cumulative increase is still Hefu China. After listing, Hefu China once had 12 boards, with a cumulative increase of more than 385.2%, and Hefu China is also the new share with the largest number of boards this year.
