Recently, Yunnan Baiyao Group Co.Ltd(000538) issued a notice on the minutes of the investor research meeting, which showed that when the company accepted the research of many institutions, it said, “the company will treat all kinds of investment behavior very carefully, especially in the securities investment in the secondary market, which we are more concerned about. The clear plan is to gradually reduce its holdings and exit at the right time.”
Previously, Yunnan Baiyao Group Co.Ltd(000538) released the financial report for 2021, and the net profit attributable to the shareholders of the listed company returned to the 2015 level at one fell swoop. In 2021, Yunnan Baiyao Group Co.Ltd(000538) achieved an operating revenue of 36.374 billion yuan, a year-on-year increase of 11.09%, and a net profit of 2.804 billion yuan, a sharp decrease of 49.17% compared with 5.516 billion yuan in 2020.
Operating income increased by 11.09%. Why did the net profit almost decline in a half cut manner? Because the company relies heavily on non recurring profits and losses. In 2019 and 2020, Yunnan Baiyao Group Co.Ltd(000538) non recurring gains and losses were 1.894 billion yuan and 2.617 billion yuan, accounting for nearly 50% of the net profit of the year. In 2021, the change of Yunnan Baiyao Group Co.Ltd(000538) fair value was a loss of 1.929 billion yuan.
In the quarterly financial reports of 2021, the company’s income in the field of securities investment is not optimistic, which is mainly reflected in the profit and loss of changes in fair value. In the first quarter report, semi annual report, third quarter report and full year report of 2021, Yunnan Baiyao Group Co.Ltd(000538) fair value change losses were 789 million yuan, 862 million yuan, 1.555 billion yuan and 1.929 billion yuan respectively, and the losses continued to increase. In fact, the market has long heard that Yunnan Baiyao Group Co.Ltd(000538) stock speculation is “not very good”. As soon as the third quarter report of 2021 was released, Yunnan Baiyao Group Co.Ltd(000538) made a loss of 1.5 billion yuan due to stock speculation and went on microblog hot search.
Some companies can make a lot of money by speculating in stocks, but some companies themselves do not have the gene to speculate in stocks. In 2021, Yunnan Baiyao Group Co.Ltd(000538) lost nearly 2 billion yuan in stock speculation. From the current point of view, Yunnan Baiyao Group Co.Ltd(000538) must be the latter. So how should we view Yunnan Baiyao Group Co.Ltd(000538) current performance? Can Yunnan Baiyao Group Co.Ltd(000538) , who is unwilling to continue to be a “leek” in the stock market, become better?
First of all, Yunnan Baiyao Group Co.Ltd(000538) serious losses in stock speculation are actually expected. In fact, every quarterly report of Yunnan Baiyao Group Co.Ltd(000538) in 2021 is not ideal. For such a listed company, such a large-scale loss should not be. In recent years, many listed companies in China have engaged in large-scale stock speculation. This is because many listed companies in traditional industries are facing a problem. Although their own industries have developed well and their own profit level is OK, the overall growth space is relatively limited. In addition, traditional industries have accumulated a lot of capital, so these listed companies choose to make money through large-scale capital market operation or stock speculation, Yunnan Baiyao Group Co.Ltd(000538) is also in this state.
Secondly, the core reason for Yunnan Baiyao Group Co.Ltd(000538) to lose money in stock speculation is that Yunnan Baiyao Group Co.Ltd(000538) does not have enough professionalism. Some industrial companies are very successful in stock speculation. The key is to spend a lot of money on large-scale operation of the capital market, and even spend a lot of money to hire professionals to conduct market trading Yunnan Baiyao Group Co.Ltd(000538) of the market operation performance is very unsatisfactory, itself may not be suitable for stock speculation.
Third, Yunnan Baiyao Group Co.Ltd(000538) no longer willing to be “leek” is a good thing for the current whole market, because too many listed companies do not expand reproduction with a large amount of funds, but speculate in stocks, which is a very unfavorable thing for the capital market Yunnan Baiyao Group Co.Ltd(000538) after the “leek” was cut in the capital market, he finally realized the problem and began to return to the main business. At this time, Yunnan Baiyao Group Co.Ltd(000538) in his main business field, he needs to find ways to further develop the market and improve his market advantage, which is the most important thing.
At least for the current Yunnan Baiyao Group Co.Ltd(000538) , it’s still a prodigal son’s return money.
