In case of debt default and executives’ departure, the explosive Yango Group Co.Ltd(000671) recently emerged from a wave of “big bull”. On March 28, Yango Group Co.Ltd(000671) share price rose again. As of the afternoon closing, Yango Group Co.Ltd(000671) closed at 4.25 yuan, up 10.1%, with a turnover of 3.055 billion yuan and a turnover rate of 18.4%. The latest market value was 17.597 billion yuan. Seven trading limits were recorded in eight trading days. After the killing of stocks and bonds, Yango Group Co.Ltd(000671) ushered in the long lost “bull”.
However, magically, Yango Group Co.Ltd(000671) ‘s limit was raised shortly after the public disclosure of debt default. On March 18, Yango Group Co.Ltd(000671) announced that due to the superposition of macroeconomic environment, industry environment and financing environment, there was a phased shortage of liquidity Yango Group Co.Ltd(000671) failed to pay interest on overseas bonds on schedule, which accelerated the maturity of the company’s debt financing instruments Yango Group Co.Ltd(000671) failed to obtain exemption from the cross protection provisions of the above accelerated maturity bonds, that is, failed to pay the accumulated principal and interest of the above accelerated maturity bonds in full, totaling RMB 5.028 billion.
With a debt default of 5 billion yuan, Yango Group Co.Ltd(000671) why did it rise the limit continuously? “The recent stock price fluctuation of the real estate sector is mainly affected by the favorable policies, which has been divorced from the fundamentals of the company.” Xie Yifeng, President of China Urban Real Estate Research Institute, said frankly that affected by the external environment and its own debt default, Yango Group Co.Ltd(000671) previously the stock price was depressed, and now it belongs to the stage of valuation repair.
The reporter of Beijing business daily noted that the real estate sector has increased significantly recently. Although Yango Group Co.Ltd(000671) has recovered, its price to book ratio is 0.63 and price to earnings ratio is 3.3, which is still in the undervalued range. From the perspective of the flow of main funds, blasting real estate enterprises are “favored”, and Yango Group Co.Ltd(000671) , Tahoe Group Co.Ltd(000732) , China Fortune Land Development Co.Ltd(600340) and others have reaped the limit.
Yan Yuejin, research director of the think tank center of E-House Research Institute, said that one advantage of explosive real estate enterprises is that the valuation is low enough. In the logic of investors, bottom reading is a pleasure. Although Yango Group Co.Ltd(000671) has risen repeatedly this time, it is difficult to say how far it can go. Its share price has not revived with blood, but only rose periodically.
The market direction has changed, and multiple positive factors have strengthened the valuation repair of the real estate sector. On March 16, the financial stability and Development Commission of the State Council held a special meeting to study the current economic situation and capital market problems. The meeting required that real estate enterprises should timely study and put forward effective solutions to prevent and resolve risks, and put forward supporting measures for the transformation to a new development model. The meeting also stressed that relevant departments should earnestly assume their responsibilities, actively introduce policies conducive to the market and prudently introduce contractionary policies. On the same day, many ministries and commissions spoke intensively to boost market confidence.
In terms of the market, the mortgage interest rate recorded the largest monthly decline since 2019. According to the monitoring of the shell Research Institute, in March, the interest rate of the first set of mainstream housing loans in 103 key cities in China was 5.34%, and the interest rate of the second set was 5.6%, down 13 and 15 basis points respectively from the previous month. In March, the mortgage interest rate recorded the largest monthly decline since 2019, and the mortgage environment tends to be loose.
Xie Yifeng said that with the emergence of the bottom of the policy, market confidence has been boosted, and it is likely that there will be a wave of positive market in the second half of this year. The expected reversal is also the reason for the main capital inflow.
The external environment is improving, but the fundamentals of Yango Group Co.Ltd(000671) remain unchanged, which seems unable to become the driving force for its continuous trading.
In the second half of 2021, Yango Group Co.Ltd(000671) encountered operating difficulties and poor performance, which also led to the active “exit” of the shareholder Taikang, with an estimated loss of nearly 1.7 billion yuan.
Since then Yango Group Co.Ltd(000671) “negative” status has continued. At the beginning of January this year, Zhu Rongbin, the Yango Group Co.Ltd(000671) former executive chairman and President of Yango Group Co.Ltd(000671) , resigned and ran away. The investment of real money and silver finally had no choice but to “cut the meat” and leave. According to media statistics, Zhu Rongbin bought 115 million yuan Yango Group Co.Ltd(000671) shares in four years.
On March 9, Yango Group Co.Ltd(000671) issued another announcement. Executive vice president Kan Naigui submitted his resignation to the board of directors of the company for personal reasons. After his resignation, he no longer held any other positions in the company. After Zhu Rongbin, Yango Group Co.Ltd(000671) lost another senior executive.
In terms of performance, affected by the lower than expected sales performance, Yango Group Co.Ltd(000671) in the performance forecast disclosed in January this year, it is expected that the net profit attributable to shareholders of listed companies will lose 4.5 billion yuan to 5.8 billion yuan in 2021. The next day, Yango Group Co.Ltd(000671) received the attention letter from Shenzhen Stock Exchange.
Yango Group Co.Ltd(000671) in his reply to the Shenzhen Stock Exchange, he also publicly disclosed the difficulties he was facing. By the end of September 2021, Yango Group Co.Ltd(000671) accumulated interest bearing liabilities had reached 84.938 billion yuan. Among them, interest bearing liabilities due within one year amounted to 24.798 billion yuan, accounting for 29.2%; The interest bearing liabilities due within 1-2 years are RMB 36.567 billion, accounting for the highest proportion, up to 43.05%.
However, by the end of December 2021, Yango Group Co.Ltd(000671) in hand monetary funds had decreased significantly compared with the beginning of the year, resulting in less than 1% of the book funds available for flexible activities in practical operation. It was very difficult to return to the group level, and the freely available monetary funds were basically exhausted.
After the withdrawal of Taikang department, Yango Group Co.Ltd(000671) external “blood transfusion” is obviously insufficient, but relying solely on internal “blood creation” at the management level, its debt repayment pressure can not be ignored.
Huge loss of profits and serious debt crisis. In the face of domestic and foreign troubles, Yango Group Co.Ltd(000671) accident has been sought after by the capital market, and the risk of this wave of operation has appeared.
