On the evening of January 12, Kunming Longjin Pharmaceutical Co.Ltd(002750) announced that Lixing industry, the major shareholder holding 20.12% of the shares of Kunming Longjin Pharmaceutical Co.Ltd(002750) , announced that it planned to reduce its holdings of no more than 6% of the company’s shares due to its own business capital needs.
In the stock bar, investors asked sadly, “what do I mean by reducing my holdings as soon as I buy?”
Source: stock bar
major shareholders throw out the reduction plan
The share price of Kunming Longjin Pharmaceutical Co.Ltd(002750) finally turned around because of an announcement after nearly two years of decline.
On the evening of December 22, 2021, the company announced that breviscapine for injection, the company’s core product, was to be selected for centralized procurement by the inter provincial alliance of patent drugs. From this day on, the company’s share price rose for 10 consecutive trading days and was named “demon dragon” by investors.
On January 6, 2022, Kunming Longjin Pharmaceutical Co.Ltd(002750) once fell to the limit in the morning and suddenly rose in the afternoon. On the same day, the company announced that it had recently received the notification letter on the share reduction plan issued by the controlling shareholder Qunxing investment and the actual controller fan xianrussia. Due to the enterprise operation and the capital needs of shareholders, Qunxing investment and fan xianrussia planned to reduce their total shares by no more than 3.19% through block trading and centralized bidding. As soon as the reduction plan was announced, the company’s share price fell by the limit on January 7.
After a slight increase of 2.72% on January 10, Kunming Longjin Pharmaceutical Co.Ltd(002750) the limit rose again on January 11 and 12. On the evening of January 12, Kunming Longjin Pharmaceutical Co.Ltd(002750) announced that due to the needs of its own business funds, Lixing industry, a shareholder holding 80.5823 million shares of the company (accounting for 20.12% of the total share capital of the company), plans to reduce no more than 24.03 million shares of the company (accounting for 6% of the total share capital of the company) by centralized bidding, block trading or other legal means.
Source: Kunming Longjin Pharmaceutical Co.Ltd(002750) announcement
share price rose 191% in more than half a month
According to the statistics of China Securities Journal and China Securities Taurus reporter, in the last 15 trading days, Kunming Longjin Pharmaceutical Co.Ltd(002750) has harvested a total of 12 trading boards. The company’s share price increased by 191% in more than half a month from the closing price of 7.53 yuan / share on December 21, 2021 to 21.9 yuan / share on January 12, 2022.
According to the dragon and tiger list data on January 12, among the top five seats, institutions occupied the fourth seat with a purchase amount of 51.6563 million yuan, and the top five seats bought 272 million yuan in total. The top five seats sold totaled 277 million yuan.
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Since 2022, the company has been on the dragon and tiger list for 6 times. According to the data of the dragon and tiger list, Kunming Longjin Pharmaceutical Co.Ltd(002750) is driven by institutions and hot money, some of which are repeatedly involved.
From February 28, 2019 to March 20, 2019, Kunming Longjin Pharmaceutical Co.Ltd(002750) harvested 11 daily limit boards in 15 trading days, and hit a stage high of 23.62 yuan / share on April 12, 2019. However, with the rise of the company’s share price, the company’s controlling shareholders, actual controllers and major shareholders threw out the reduction plan one after another, and then the company’s share price fell.
frequent Chinese medicine support policies
Since its establishment in 1996, it has been engaged in the R & D, production and sales of modern Chinese patent medicine and characteristic chemical generic drugs. In recent years, the company has also invested in setting up subsidiaries to engage in innovative drug R & D, characteristic chemical generic drug R & D, industrial marijuana planting, regional pharmaceutical wholesale and other businesses.
Breviscapine for injection is the core product of Kunming Longjin Pharmaceutical Co.Ltd(002750) . The sales revenue of this product accounts for 26.54% of the company’s operating revenue in the first three quarters of 2021 (99.40% after deducting the revenue from pharmaceutical wholesale business), and 87.74% of the company’s operating revenue in 2020.
Since 2021, Kunming Longjin Pharmaceutical Co.Ltd(002750) has frequent heavy support policies in the traditional Chinese medicine industry. In February 2021, the general office of the State Council issued several policies and measures on accelerating the characteristic development of traditional Chinese medicine; In June 2021, the National Health Commission and other ministries and commissions jointly formulated the opinions on Further Strengthening the work of traditional Chinese medicine in general hospitals and promoting the coordinated development of traditional Chinese and Western medicine; In July 2021, the State Administration of traditional Chinese medicine and other five departments jointly formulated the implementation plan for the dissemination of traditional Chinese medicine culture (2021-2025); In December 2021, the guiding opinions of the state medical security administration and the State Administration of traditional Chinese medicine on medical insurance supporting the inheritance, innovation and development of traditional Chinese medicine were issued.
With policy support, the choice financial terminal data show that the traditional Chinese medicine production sector index has been rising since 2021. Capital Securities said that the recent market performance of the traditional Chinese medicine industry is strong. There is a strong foundation for the sustainability of the traditional Chinese medicine market in terms of traditional Chinese Medicine Inheritance and innovation, payment, price increase and volume intensive purchase.
Source: choice financial terminal
