With the concept of “covid-19 oral medicine”, the old traditional Chinese medicine stock Jinghua Pharmaceutical Group Co.Ltd(002349) has returned more than 10 yuan after more than three years.
According to the statistics of China stock market news choice, from December 24, 2021 to January 5, 2022, Jinghua Pharmaceutical Group Co.Ltd(002349) shares closed at the limit price for eight consecutive trading days, with a cumulative increase of 114.62%. During the period, the company’s share price hit a new high in recent three years, reaching a maximum of 13.65 yuan / share.
However, the good times did not last long. After pulling the eight daily limit, the share price of Jinghua Pharmaceutical Group Co.Ltd(002349) turned down sharply in the past two trading days. As of the closing on January 7, the company’s share price closed at 11.22 yuan / share, down 17.8% in two trading days.
The stock price encountered a roller coaster market. What is the gold content of Jinghua Pharmaceutical Group Co.Ltd(002349) as a concept stock of “covid-19 oral medicine”?
The reporter of Securities Daily called Jinghua Pharmaceutical Group Co.Ltd(002349) and asked about the intermediates of ritonavir series. The relevant staff of the company’s Securities Department replied to the reporter, “the stock price of the company has fluctuated greatly recently. If you need to know the situation of the subsidiary, it is more appropriate to ask senxuan medicine.” Subsequently, the staff member declined the interview request on the grounds that the secretary was on a business trip.
four times in half a month
According to the trading public information of Shenzhen Stock Exchange, on December 27, 2021, December 30, 2021 and January 5, 2022, Jinghua Pharmaceutical Group Co.Ltd(002349) has reached 21.21%, 29.07% and 21.84% in total due to the deviation of price increase during the abnormal period. On January 7, the company was listed on the list because the deviation value of daily price decline reached 8.85%. The famous “Lhasa Legion” business department in the market appeared to buy and sell seats.
“Covid-19 oral medicine is still only in the concept stage. It has not completed clinical verification and is still far from being officially listed. Then, when there is only the concept, the stock price will double in a short time, which shows that hot money is over hyping the concept, and hot money is also using this concept to fight for income.” Shen Meng, executive director of Xiangsong capital, said in an interview with Securities Daily.
Why should hot money stir fry this old traditional Chinese medicine stock? This stems from the fact that Pfizer “paxlovid” was approved by FDA on December 22, 2021, becoming the first covid-19 oral drug in the United States. Affected by Pfizer’s specific drugs, pharmaceutical intermediates have become a hot concept in the market for a time.
The reporter inquired about the announcement and learned that Jiangsu senxuan Pharmaceutical Co., Ltd. (hereinafter referred to as “senxuan pharmaceutical”), a holding subsidiary of Jinghua Pharmaceutical Group Co.Ltd(002349) , does produce and sell ritonavir series of pharmaceutical intermediates. In 2021, the sales volume of ritonavir pharmaceutical intermediates of senxuan medicine is expected to be 11 tons and the sales revenue is expected to be 16.84 million yuan, with a year-on-year decrease of about 33% and 32% respectively.
Similar to many pharmaceutical companies, after adhering to the concept of “covid-19 oral medicine”, the stock price of Jinghua Pharmaceutical Group Co.Ltd(002349) began to take off. After pulling the five daily limit, the company’s share price broke through 10 yuan.
On the evening of January 3, Jinghua Pharmaceutical Group Co.Ltd(002349) disclosed the company’s director and general manager Zhou Yunzhong’s share reduction plan. Zhou Yunzhong plans to reduce the company’s shares by means of centralized competitive trading on the stock exchange from 15 trading days after the date of announcement to July 25, 2022, with a total of no more than 966000 shares. However, the company’s share price performance was not affected by the executive reduction plan, and it still made rapid progress all the way. On January 4 and January 5, the company’s share price rose for two consecutive days.
share price changes, the company actively “cooling”
The reporter found on the investor interaction platform that in the past half a month, many investors have left messages asking about Jinghua Pharmaceutical Group Co.Ltd(002349) ritonavir intermediate and Pfizer’s oral drugs for covid-19.
In the initial reply, Jinghua Pharmaceutical Group Co.Ltd(002349) did not give a direct reply on whether the company has relevant cooperation with Pfizer. After repeated inquiries by investors, the company’s reply has become more detailed and affirmed.
On January 4, the investor proposed that “the subsidiary Jiangsu senxuan’s 2019 semi annual report clearly stated that it provides high-quality products for Gilead in the United States and is an important customer of the company. Has the subsidiary provided ritonavir intermediate products for Gilead in the United States?”, The company replied, “senxuan pharmaceutical, a subsidiary of the company, currently has no direct supply cooperation with Gilead company in the United States.” On January 5, the company replied to similar questions again, “in 2019, senxuan pharmaceutical, a subsidiary of the company, did cooperate with Gilead, and there is no cooperative supply at present.”
From the point of time, the sharp decline of the company’s share price happened after the company clearly replied to investors on January 5 that “senxuan medicine has no cooperative supply with Gilead”. On January 6, the company’s share price opened at the limit price of 12.29 yuan / share, down 8.64% all over the world. The next trading day, the company’s share price fell again.
“The information disclosure of listed companies can not be passively carried out through the investor interaction platform, but should be more active and timely clarified through announcements for some rumors. Otherwise, it will not rule out the possibility of intentionally or unintentionally allowing hot money speculation.” Shen Meng said.
Lawyer Wang Zhibin of Shanghai Minglun law firm said, “In case of any change in share price, the company has the obligation to disclose the complete relationship between its business and \’hot spots\’ in a timely and clear manner. It should be in place and explained clearly in one step, rather than reply only to specific questions on the interactive platform. Even if the questions asked by investors are limited to one aspect, the company should still reply to the more critical questions that investors have not asked.”
” Jinghua Pharmaceutical Group Co.Ltd(002349) the announcement on January 5 is relatively complete in content. If the company can make a complete reply on the interactive easy platform at the first time, there may be no sharp fluctuation in the stock price.” Wang Zhibin added.
(source: Securities Daily)
