Recently, Ge Weidong, known as the “east evil” in the futures circle, appeared divine operation again in the A-share market.
According to relevant media reports, in the second half of 2020, Chengxin Lithium Group Co.Ltd(002240) (then known as Weihua shares) suffered a significant loss. When the stock price corrected, Ge Weidong began to build positions, which more than tripled in a year and a half. “Buy where no one cares and sell when there is a lot of noise.” This once again confirms the famous investment saying pursued by A-share investors.
On March 28, Chengxin Lithium Group Co.Ltd(002240) released the annual report of 2021. The company’s revenue was 2.934 billion yuan, a year-on-year increase of 63.88%; The net profit was 851 million yuan, a year-on-year increase of 30 times; The basic earnings per share is 1.08 yuan; Distribute cash dividend of RMB 1.00 (including tax) to all shareholders for every 10 shares; The net profit in the first quarter of this year is expected to be 900-1.1 billion yuan, an increase of 7-9 times year-on-year.
Chengxin Lithium Group Co.Ltd(002240) ‘s main business includes lithium ore mining and dressing, production and sales of basic lithium salt, metal lithium and rare earth products, and a small amount of forest business. The stripping of rare earth business was completed in May 2021, focusing on lithium battery products.
Chengxin Lithium Group Co.Ltd(002240) 2021 annual report shows that in 2021, the company’s lithium product output was about 40000 tons, an increase of 90.5% year-on-year; The sales volume was about 42000 tons, a year-on-year increase of 108.88%. The revenue of lithium products business was 2.785 billion yuan, accounting for 94.92% of the total revenue, with a year-on-year increase of about 3 times; The gross profit margin reached 47.78%, contributing 1.331 billion yuan, accounting for 97.92% of the total gross profit; The comprehensive gross profit margin is 46.63%.
As for the reasons for the performance growth, Chengxin Lithium Group Co.Ltd(002240) in the first quarterly report forecast of 2022, said that during the reporting period, the new energy industry developed rapidly, the demand for lithium salt from downstream customers increased strongly, the price of lithium salt products continued to rise, and the profit of lithium salt business of the company increased significantly compared with the same period of last year.
From GE Weidong’s position changes, in the third quarter of 2020, Ge Weidong appeared on the list of the company’s top ten circulating shareholders for the first time. By the end of the third quarter of 2022, he held Chengxin Lithium Group Co.Ltd(002240) 16 million shares.
According to the annual report of Chengxin Lithium Group Co.Ltd(002240) 2021, the share price of Chengxin Lithium Group Co.Ltd(002240) was at a high level in the fourth quarter of last year. Ge Weidong’s reduction of 6.72 million shares has withdrawn from the list of the top ten shareholders. However, according to the list of circulating shareholders, he still holds 134658 million yuan of shares, ranking the eighth largest circulating shareholder.
In fact, if Ge Weidong sold all his shares at the high point of Chengxin Lithium Group Co.Ltd(002240) share price in the fourth quarter of last year, he might get a return on investment of five times. However, according to the prediction of professionals, even if Ge Weidong chooses to clear all his positions at the end of the first quarter of this year, Ge Weidong’s profit on the stock can reach 800900 million yuan.
It is worth mentioning that Chengxin Lithium Group Co.Ltd(002240) this year is a “hot” investment star. Not only did it buy Minerals everywhere and bind the largest spodumene production capacity in China in advance, but Byd Company Limited(002594) was also introduced as the company’s strategic investor not long ago.
On March 22, Chengxin Lithium Group Co.Ltd(002240) announced that it planned to raise funds from Byd Company Limited(002594) non-public offering with no more than 3 billion yuan and introduce Byd Company Limited(002594) as the company’s strategic investor. After the fixed increase is completed, it is estimated that Byd Company Limited(002594) holds more than 5% of the shares of Chengxin Lithium Group Co.Ltd(002240) and becomes a related party of the company. The two sides will cooperate in the purchase and sale of raw materials, processing, mineral resources development and other fields. The company is expected to give priority to Byd Company Limited(002594) processing orders.
On March 28, Chengxin Lithium Group Co.Ltd(002240) announced that shengtun lithium, a wholly-owned subsidiary, signed a strategic cooperation framework agreement with Guocheng group to cooperate to promote the resumption of production and operation of Jinxin mining.
Shengtun lithium prepays part of the purchase funds to Jinxin mining, which is directed to Jinxin mining to solve the debt problem and resume the production and operation of the mine. Guocheng group urges Jinxin mining to give priority to selling lithium concentrate / spodumene ore not less than 50% of Jinxin mining’s output to shengtun lithium industry within a certain period of time according to the fair market price.
In addition, Chengxin Lithium Group Co.Ltd(002240) is also distributing lithium resource projects around the world Chengxin Lithium Group Co.Ltd(002240) through its wholly-owned subsidiary shengtun lithium industry, it holds 75% of the shares of Oyono mining, which owns the mining right of yelonggou spodumene mine in Jinchuan County, Sichuan Province and the detailed exploration right of taiyanghekou lithium Polymetallic Mine.
Buy where no one cares and sell when there is a lot of noise. Easier said than done. When the overall valuation of the stock price is not high and there are still serious losses, Ge Weidong began to buy, indicating that he has done a lot of research and predicted the development trend of the lithium battery industry in the future. When Chengxin Lithium Group Co.Ltd(002240) profits continued to increase, Ge Weidong began to retreat again. Although he did not appear at the top perfectly, on the whole, this wave of investment operation has been very powerful.
In terms of futures investment, Ge Weidong’s investment secret is: one taboo, two tricks, three principles and four practices.
One Taboo — panic. The main reason why retail investors lose money is that they can’t overcome the two human weaknesses of greed and fear.
Two tips – one is to follow the trend, and the other is to feel the direction with the least resistance with your heart. To follow the trend, we should see what the current development trend of the market is. Once we comply with the trend of market development, we should take advantage of the trend, otherwise we will fall behind and be eliminated. Feeling the direction with the least resistance with your heart is actually what experiences and lessons you have learned from your previous investment experience. Once you reflect more, you will naturally feel the direction with the least resistance.
Three principles – first, whether you can earn 3 yuan by taking the risk of 1 yuan; Second, it depends on whether the fundamental analysis supports your investment direction; Third, be clear whether the technical side also supports your investment direction and whether the fundamentals can form synchronous resonance with the technical side.
Four approaches – one is to keep an appropriate distance from the market and not predict the market. Because the market situation is changing rapidly, there is no need to spend energy on predicting the market. Just follow your own ideas and feel the direction with the least resistance from experience; Second, ideas determine behavior. In other words, don’t let other people’s thoughts interfere with your thoughts. Third, if you don’t move, you will hit it with one blow. Ge Weidong advocates that investors should have the same forbearance and determination as a lion. If they don’t move, they will have to hit it; Fourth, we should dare to try.
Who will be the next outlet that “boss Ge” likes?
