There may be major changes in the 8.1 billion yuan large order just disclosed by 11 times bull stocks Andon Health Co.Ltd(002432) .
On January 14, Andon Health Co.Ltd(002432) a supplementary announcement suddenly said that the U.S. government has the right to terminate the contract at any time due to its own factors and remind investors to guard against investment risks in the announcement on signing major contracts for daily operation of the company’s U.S. subsidiaries disclosed by the company before early trading that day.
Before January 14, Andon Health Co.Ltd(002432) disclosed that the U.S. subsidiary and the U.S. ACC (U.S. Army contract management command) signed a procurement contract on behalf of the U.S. HHS (U.S. Department of health and human services) on January 13, 2022 local time for ihealth covid-19 antigen home self-test OTC kit products.
On the same day, the company’s share price rose again to 75.28 yuan / share. In the past 49 trading days, its share price has risen by more than 1154% to achieve 27 limits.
emergency tips five risks
The announcement pointed out that the U.S. government has the right to terminate the contract at any time due to its own factors. It can request to stop the execution of the contract without any reason, and cancel the subsequent procurement. The Seller shall bear the corresponding risks and possible losses.
The company made five supplementary risk tips for the contents of the pre market announcement on January 14:
Risk of uncertainty in the development of epidemic situation in the United States: the demand for the company’s antigen home self-test kit products is directly related to the development of epidemic situation in the United States. Virus variation, vaccination and the introduction of covid-19 drugs all have an impact on the development of epidemic situation. Therefore, the development of epidemic situation in the future has strong uncertainty, This uncertainty may greatly affect the implementation of the kit product contract.
Logistics and transportation risk: due to the epidemic situation in the United States, the current shortage of transportation capacity in air and sea transportation channels continues, the port is congested and the backlog of goods is serious. If the shipped goods cannot be picked up in time, they will not be delivered on time according to the contract requirements. If the delivery date is seriously affected, the company may default, or the buyer may cancel the subsequent contract procurement after terminating the contract, If the contract cannot be fully implemented, the company shall also bear relevant losses.
Quality risk: in the case of mass production, the batches of individual products may have quality problems, leading to the risk of return or even recall. This risk may lead to the buyer’s return, termination of the contract and cancellation of subsequent procurement, and the seller will bear relevant losses.
Supply risk: if the company cannot produce and deliver goods on time due to the change of epidemic situation in China or the decline of production capacity and output due to other force majeure factors, it may lead to the company’s breach of contract, or the buyer terminates the contract and cancels subsequent contract procurement, the company shall also bear relevant losses if the contract cannot be fully implemented.
Buyer’s risk: the U.S. government has the right to terminate the contract at any time due to its own factors. The above meaning means that the U.S. government can request to stop the execution of the contract without any reason and cancel the subsequent procurement. The Seller shall bear the corresponding risks and possible losses.
In addition, the company replied to the inquiry letter of the Shenzhen stock exchange that night that its covid-19 self-test kit was currently authorized by the U.S. FDA and EUA and could be sold in the United States, but it had not obtained the Chinese license and could not be put into use in China. In the announcement, the company also specifically emphasized the possible reduction of antigen detection sensitivity. The company said that it would strengthen the control over the integrity of the wording of the announcement in the future, but it had no behavior and motivation to hype the stock price through information disclosure.
equity incentive is expected to meet the standard in 2021
It is worth noting that it was announced on the evening of Andon Health Co.Ltd(002432) January 13 that the grant registration of 2021 stock option incentive plan has been completed. This equity incentive is based on the operating income in 2019, and it is stipulated that the revenue growth rate from 2022 to 2025 shall not be less than 40%, 70%, 80% and 90% respectively. In other words, Andon Health Co.Ltd(002432) in 2022, the first assessment target can be completed with a revenue of about 990 million yuan.
From January 12 to January 14, Andon Health Co.Ltd(002432) successively threw out two major contract announcements. One said that the U.S. subsidiary successively received purchase orders and contracts for ihealth kits from New York and Massachusetts, with a cumulative amount of more than 2.1 billion yuan; Another revealed that the U.S. subsidiary and ACC signed a purchase contract on January 13, 2022 local time to sell ihealth kit products. The total contract price tax was $1.275 billion (including freight), about RMB 8.102 billion.
The company said that the performance of the above contract will have a positive impact on its operating revenue and operating profit in 2022. It is estimated that if all the above orders are realized, the total amount will exceed 10 billion yuan, accounting for nearly one-third of the company’s total market value. It is expected to achieve the first assessment target of the company’s revenue of 990 million yuan in 2022.
However, the first exercise period of the incentive plan begins on the first trading day 16 months after the grant date (January 4, 2022). During the 16 months, there is still great uncertainty about the stock price trend of the company, and the actual rate of return of equity incentive objects in 2021 is unknown.
which funds participate?
In the process of the sharp rise of stock prices, a large number of small and medium-sized investors poured in. According to the data of China stock market news, as of December 31, 2021, Andon Health Co.Ltd(002432) the total number of shareholders reached 179000, a significant increase of 118000 compared with the end of the third quarter of 2021.
Source: China stock market news
The China Securities Journal China Securities Taurus reporter noted that the third quarterly report of 2021 showed that Beixin Ruifeng Fund – Tibet trust – Yunding No. 22 single fund trust – Beixin Ruifeng fund Bairui No. 143 single asset management plan and Shenzhen Wanshuntong Asset Management Co., Ltd. – Wanshuntong No. 11 private securities investment fund entered the list of the top ten circulating shareholders in the third quarter of 2021, They hold Andon Health Co.Ltd(002432) 1971 million shares and 11.43 million shares respectively. If the number of shares held remains unchanged, based on the closing price of RMB 6.69/share on September 30, 2021, the floating earnings of the two private placements in the current stock price will reach RMB 1.35 billion and RMB 780 million respectively.
In addition, according to the three-day dragon tiger list data released after hours on January 14, 2022, Guosheng securities Ningbo Sangtian Road business department and Huaxin securities Shenzhen Yitian Road business department bought 73.14 million yuan and 42.72 million yuan respectively; China Industrial Securities Co.Ltd(601377) the seats of Shaanxi Branch were sold for 107 million yuan.
Source: China stock market news
extended reading
Andon Health Co.Ltd(002432) an exchange meeting was held before the announcement, saying that people often squatted outside the plant for investigation
