Two convertible bonds were redeemed in advance this week. If investors do not convert shares or sell them in time, they may suffer great losses.
In the secondary market, where is the current valuation of convertible bonds? What other investment opportunities are there?
another convertible bond will be redeemed in advance
Ningbo Construction Co.Ltd(601789) 10 issued an announcement again, indicating that ningjian convertible bonds will be redeemed in advance.
The announcement shows that the registration date of redemption of ningjian convertible bonds is today (April 11). After the closing of the market on April 11, all ningjian convertible bonds that have not been converted into shares will be frozen, trading and conversion will be stopped, and they will be forcibly redeemed according to the redemption price of 100460 yuan / piece. After redemption, they will be delisted from the Shanghai Stock Exchange.
Source: announcement of listed companies
Ningbo Construction Co.Ltd(601789) said that the redemption price of convertible bonds may be quite different from the market price of ningjian convertible bonds, and specially reminded the holders to complete the transaction or share conversion before or on April 11, otherwise they may face large investment losses.
On April 8, ningjian convertible bonds closed at 144.20 yuan. Based on this calculation, if investors do not sell or convert shares in time, resulting in the forced redemption of convertible bonds, each will lose 43.74 yuan, accounting for about 30%.
According to the conversion value, the loss is even greater. At present, ningjian convertible bonds can convert about 21 Ningbo Construction Co.Ltd(601789) shares each. On April 8, Ningbo Construction Co.Ltd(601789) closing price was 6.97 yuan, that is, the value of each ningjian convertible bond converted into shares was about 146.43 yuan, slightly higher than the final closing price of convertible bonds.
According to the data, as of April 8, the amount of ningjian convertible bonds that had not been converted into shares was 104 million yuan, accounting for about 19.19% of the total issuance of ningjian convertible bonds.
In addition to ningjian convertible bonds, Tianhe convertible bonds will also be redeemed in advance this week Trina Solar Co.Ltd(688599) recently issued several suggestive announcements that the registration date of redemption of Trina Solar convertible bonds is April 12, and the redemption price is 100.20 yuan / piece. As of the closing on April 8, Trina Solar convertible bonds were reported at 101.90 yuan, slightly higher than the strong redemption price.
IPO “busy”
At this end, some convertible bonds are delisted by early redemption, and at the other end, the issuance and listing of convertible bonds is also very “busy”.
Last week, four convertible bonds, including the last 22 convertible bonds and Chengdu silver convertible bonds, were listed, and the first day gains of the four convertible bonds were more than 20%. Panlong convertible bonds reached the maximum increase of 57.3% under the current rules of the Shenzhen Stock Exchange.
This week, three convertible bonds including Shenhao convertible bond, Allah convertible bond and ZHONGTE convertible bond were listed. In addition, Yuxing convertible bond was issued today.
According to the prospectus, the issuance scale of Yuxing convertible bonds is 600 million yuan, and the latest rating is AA – Northeast Securities Co.Ltd(000686) according to the analysis of research report, Jiangsu Yuxing Film Technology Co.Ltd(300305) is the leader of China’s special polyester film industry, with strong downstream market demand and stable performance growth. The valuation of Yuxing convertible bonds refers to the comparable convertible bonds Lanxiao convertible bonds and CHUANHENG convertible bonds. The premium rate of convertible bonds on the first day of listing is expected to be between 20% and 25%, and the target price of convertible bonds on the first day of listing is between 115 yuan and 120 yuan. It is recommended that investors actively apply for the purchase.
The “reserve force” for the issuance of convertible bonds is also very sufficient. The data show that as of April 8, five companies have issued convertible bonds approved by the CSRC in April, with a planned issuance scale of 9.45 billion yuan.
It is worth mentioning that after the opening value of Panlong convertible bonds (254.04 yuan) was the highest and increased by 57.3% on the first day of listing, the performance of Panlong convertible bonds on the second day of listing (April 11) also attracted much attention.
convertible bond valuation rebounded at a low level
Last week, the CSI convertible bond index fell 0.5%, outperforming the Shanghai index, which fell 0.94%.
Gf Securities Co.Ltd(000776) fixed income chief analyst Liu Yu said that with the support of the recovery of the equity market, the convertible bond sentiment was slightly repaired and the valuation of the convertible bond market rebounded.
Li Yishuang, chief fixed income analyst of Cinda securities, suggested that in the current stage of bottoming in the equity market and compressing the valuation of convertible bonds, the valuation of the convertible bond market is still high, the proportion of high-priced bonds is still high, and the market as a whole has not been completely cleared.
Everbright Securities Company Limited(601788) research report pointed out that on April 8, the premium rate of convertible bonds to shares was 31.18%, and the quantile value was 97.49%, which was at a high level since 2018.
According to the opinions of many experts, there is no basis for substantial expansion in the current valuation of convertible bond market.
In the short-term bond and bond conversion strategies, the chief analyst can still choose the 6018 bond and bond conversion strategy with a low risk, and the market can still choose the double bond and bond conversion strategy with a low premium.
Zhang Xu believes that “steady growth” is still the main line in the short term. We can pay attention to the convertible bonds in building materials, prefabricated buildings and water conservancy construction, as well as the corresponding convertible bonds of urban and rural commercial banks in developed areas; As spring ploughing is imminent, we can pay due attention to the convertible bonds in the direction of pesticide, chemical fertilizer and phosphorus chemical industry in the short term.
Citic Securities Company Limited(600030) ; The growth perspective focuses on the high-profile industry targets after the digestion of valuation.
