Lens Technology Co.Ltd(300433) , once headed by Zhou Qunfei, the richest woman in China, has become one of the stocks with the worst decline since 2021. It has fallen 74% in 16 months, and the market value has shrunk by 150 billion, while the wealth of the richest woman has shrunk by more than 90 billion. At the beginning of 2021, the 14 institutions that entered through fixed growth are now at an absolute high level, with a deep set of 15 billion funds. Many institutions, including rosefinch, chose to cut out.
Such a decline is basically synchronized with the decline in performance!
On April 23, the company released the annual report of 2021 and the first quarterly report of 2022. The annual performance of 2021 decreased by 57%, and the net profit after deducting non net profit decreased by 72%, of which the loss in the fourth quarter exceeded 1.2 billion yuan. The loss in the first quarter of this year continued, with a loss of more than 400 million yuan. Somehow, the company also disclosed for the first time that the largest customer is apple, whose sales contribution in 2021 was as high as 66%, with an amount of more than 30 billion yuan. In the annual report, the company itself was also aware of the risk of over concentration of customers.
At the opening of trading on April 25, Lens Technology Co.Ltd(300433) shares plunged, down more than 10%.
sales and administrative expenses increased by 70%
dividend amount dropped by 70%
According to the annual report of Lens Technology Co.Ltd(300433) 2021, the company achieved an operating revenue of 45.268 billion yuan, a year-on-year increase of 22.55%, and the net profit attributable to shareholders of listed companies was 2.070 billion yuan, a year-on-year decrease of 57.72%.
Why is there a certain growth in revenue but a sharp decline in net profit? In terms of dismantling, it is mainly due to the high growth of operating costs and multiple expenses, and the growth rate is much higher than that of operating revenue.
In terms of operating costs, the bulk is the cost of raw materials and labor, accounting for more than 60% and 20% respectively. The absolute amount of the former is as high as 22.2 billion yuan, a year-on-year increase of 38%, and the absolute amount of the latter is 8.4 billion yuan, a year-on-year increase of 39%. The cost growth of the two segments is almost twice that of revenue.
In terms of expenses, management expenses are nearly 4 billion yuan a year, which is the absolute big head, with a growth rate of 71.58%, more than three times the growth rate of operating revenue; Sales expenses also reached 644 million yuan, with a growth rate of 75%, which is also more than three times the growth rate of revenue. In addition, R & D expenses reached 2.133 billion yuan, with a growth rate of 48%. Only the financial expenses decreased by 36%, but the absolute amount was 512 million yuan, accounting for a low proportion.
From the perspective of quarterly operation, since the fourth quarter of last year, Lens Technology Co.Ltd(300433) in the absence of significant deterioration in operating revenue, it has suffered a large loss, with a net profit loss of 1.226 billion yuan and a loss deducting non net profit of 1.4 billion yuan. However, it has basically maintained a net profit of about 1 billion yuan per quarter in the previous three quarters.
This loss momentum is brought into 2022. According to the first quarterly report of this year, Lens Technology Co.Ltd(300433) achieved an operating revenue of 9.334 billion yuan in the quarter, a year-on-year decrease of 22.15%; The net profit loss was 411 million yuan, with a profit of 1.2 billion yuan in the same period last year.
The performance is not good, and the dividend has also decreased significantly. Therefore, the “10 faction 3.5 yuan” of the previous year has become “10 faction 1 yuan”, a significant decrease of 72%.
66% sales rely on Apple
“cut order” rumors repeatedly affect the stock price
In the 2021 annual report, somehow Lens Technology Co.Ltd(300433) rarely made it clear that the largest customer is apple. Since its listing in 2015, the annual report basically uses the vague expression of “No. 1”. Although the market knows that it is apple, the company has not broken through after all.
Specifically, in 2021, the sales from Apple reached 30.1 billion yuan, accounting for 66.49%. In other words, two-thirds of the revenue comes from one company, and the risk of high concentration of customers is not generally large.
Looking back, from 2018 to 2020, the sales of the largest customer (Apple) accounted for 46.97%, 43.07% and 54.97% respectively. Among them, in 2020, the sales to Apple exceeded 20 billion yuan, accounting for a significant increase of 12 percentage points. One year later, it immediately exceeded 30 billion yuan, and the contribution increased by 11 percentage points.
In this case, Apple’s slightest disturbance can easily affect the company’s share price. Last year Lens Technology Co.Ltd(300433) there were many rumors of being cut by apple, and almost every time it had a huge impact on the stock price. For example, on January 21 last year, Lens Technology Co.Ltd(300433) intraday fell sharply by 13% and closed down nearly 10%. One important reason is that a fund manager said, “Apple will cut orders and Apple’s supply chain may shift”.
The company itself is also aware of the risk of over concentration of customers, saying that “the company’s main customers are well-known medium and high-end terminal brands of global consumer electronics and new energy vehicles, and the customer concentration is relatively high”. “If the development of global consumer electronics and new energy vehicle industries changes greatly at the same time, it will have a certain impact on the company’s operating performance.”
The company said that on the basis of continuing to deepen cooperation with existing customers, it will actively explore new markets, new customers and new products, and optimize the structure of customers and products.
share price fell 74% in 16 months
well known organizations cut meat out
The company’s poor performance may have long been expected by the market. Its share price has been in a continuous decline channel since the beginning of 2021. From the high point of 41.05 yuan (the former resumption price) to the closing price of 10.8 yuan on April 22, the share price has fallen by 74% in 16 months.
Such a decline left the company with a market value of more than 200 billion, leaving only 53.7 billion and an evaporation of more than 150 billion. Zhou Qun feishen, who started from scratch and controls about 63% of the equity, has shrunk by about 94 billion, leaving only more than 30 billion, long gone from the scene of winning the throne of China’s richest woman when Lens Technology Co.Ltd(300433) listed in 2015.
However, the “richest woman” took all the original shares, and the change of wealth was only a paper number. What was more injured was the retail investors and institutions who took over the offer at a high level of real gold and silver.
In terms of institutions, Lens Technology Co.Ltd(300433) completed a round of private placement in January 2021, with an issuance of about 589 million yuan, a fixed increase price of 25.44 yuan / share and a fund-raising of 15 billion yuan. In hindsight, the fixed growth was undoubtedly at a high level, but it was supported by a number of well-known institutions at that time. The subscription amount of China’s state-owned enterprise structural adjustment fund, China International Capital Corporation Limited(601995) , Singapore Government Investment Co., Ltd. and Nord fund was more than 1 billion, and the well-known institution “private to public” Zhuque also received 999 million yuan China Merchants Securities Co.Ltd(600999) and e fund were also allocated 500 million yuan and 400 million yuan respectively.
Since the third quarter of last year, these fixed additional shares have been lifted one after another, and some institutions that have just been lifted have been helpless to choose to cut out. For example, rosefinch fund and Singapore government investment company are continuously reducing their holdings, while most institutions, especially companies with large investment amount, choose to continue to stick to it. In addition to these institutions with fixed growth, QFII “Central Bank of Norway” and “Hong Kong Central Clearing” of northbound funds purchased in the secondary market also chose to reduce their holdings in a large amount.
In order to show confidence, the company has also made some symbolic buybacks. By the end of March, the cumulative number of shares repurchased was 15.926 million, accounting for 0.3202% of the total share capital of the company. The highest transaction price was 20.50 yuan / share, the lowest transaction price was 11.79 yuan / share, and the payment amount was only a mere 240 million yuan (excluding transaction costs). At present, these funds are also in a locked state.
