Wens Foodstuff Group Co.Ltd(300498) pre loss of 13 billion yuan to 13.8 billion yuan; Kaile Science And Technology Co.Ltd.Hubei(600260) pre loss of 7.1 billion yuan ~ 8.7 billion yuan; Cosco Shipping Energy Transportation Co.Ltd(600026) pre loss of 4.92 billion yuan ~ 5.12 billion yuan; Huadian Energy Company Limited(600726) pre loss of 3 billion yuan; Shenyang Jinshan Energy Co.Ltd(600396) pre loss of 1.8 billion yuan to 2.038 billion yuan; Shenzhen Everwin Precision Technology Co.Ltd(300115) a loss of 490 million yuan to 690 million yuan in advance… At the end of January, the “performance thunder” of listed companies exploded again, and there were some blue chips familiar to investors.
“performance thunder” continued to blow
Near the end of January, the disclosure of the performance forecast of the 2021 annual report of A-Shares began to accelerate. As of January 26, a total of 1240 companies had issued 1251 performance forecasts, of which 1125 were released in January this year. By observing the latest performance forecast released recently, it can be found that the number of companies whose performance is expected to decline or even lose began to increase significantly. Of the 155 companies that are expected to lose their first or continued net profit in 2021, as many as 149 companies issued the performance forecast in January this year.
By analyzing the reasons for the loss of the company issuing the loss forecast, we can see that the asset impairment has once again become the “killer” eroding the company’s profits. Among all the loss forecast companies, 84 companies have suffered the impact of asset impairment to varying degrees. For example, on January 26, Kaile Science And Technology Co.Ltd.Hubei(600260) released the forecast of the annual report, which predicted a loss of 7.1 billion yuan to 8.7 billion yuan in 2021. The company said that due to the accounts receivable and prepayments related to the private network communication business, the annual inventory impairment was about 5.5 billion yuan; Due to the stagnation of private network business and the sharp contraction of mobile intelligent terminal business, the production and operation of subsidiary Shanghai Fanzhuo are greatly affected. It is impossible to predict the future operation, and the provision for goodwill impairment is about 500 million yuan; Provide guarantee for subsidiaries and withdraw estimated liabilities of about 1.2 billion yuan.
On January 25, Tempus Global Business Service Group Holding Ltd(300178) released the forecast of the annual report. The annual performance in 2021 is expected to suffer a loss of 1.225 billion yuan to 1.593 billion yuan. During the reporting period, the company made an impairment provision of about 370 million yuan.
In fact, it is not only companies with poor performance that will “explode” their performance due to asset impairment. Leading companies in some industries will also “explode”. For example, on January 21, it announced Wens Foodstuff Group Co.Ltd(300498) with a huge loss of 13 billion yuan to 13.8 billion yuan in 2021, and made a preliminary provision for impairment of about 2.5 billion yuan for consumable biological assets and productive biological assets on hand; On January 22, the group announced Cosco Shipping Energy Transportation Co.Ltd(600026) with an annual loss of 4.92 billion yuan to 5.12 billion yuan. The group made provision for asset impairment for 94 ships, totaling about 4.96 billion yuan; On January 24, it was announced that Shenzhen Everwin Precision Technology Co.Ltd(300115) with an annual loss of 490 million yuan to 690 million yuan was also accrued for impairment.
As the “deadline” of this weekend approaches, it is not ruled out that more companies will successively burst out the “thunder” of performance losses due to asset impairment
attached table: companies with a loss of more than 1 billion and involving asset impairment
industry leaders are also “exploding”
The amount of pre loss of more than 10 billion yuan makes the leading animal husbandry and breeding company Wens Foodstuff Group Co.Ltd(300498) with a market value of 100 billion yuan temporarily sit in the position of “pre loss king” in 2021. Looking at the financial reports of the company in recent reporting periods, this is the third consecutive quarterly loss of the company. In the second quarter and the third quarter of 2021, the company lost 3.041 billion yuan and 7.204 billion yuan respectively. Combined with the recently released annual report, the company will lose about 3.299 billion yuan to 4.099 billion yuan again in the fourth quarter. The reasons for the loss were analyzed. In addition to the impairment of assets, the price of pigs fell sharply during the reporting period. At the same time, due to the continuous rise in the price of feed raw materials, the company purchased some pig seedlings for fattening and continued to promote the optimization of breeding pigs, which pushed up the cost of pig breeding.
The pig industry has a strong cyclical operation law, and the share prices of listed companies always show a rising and falling trend. Looking back on this round of pig cycle, the boom cycle began in 2018, and the pig price rose sharply due to African swine fever. The pig price once rose from 11 yuan / kg in 2018 to 35 yuan / kg in 2020. However, since 2021, the pig market has entered the pattern of strong supply and weak demand, and the pig price has also fluctuated downward, resulting in the rapid shrinkage of the profits of the pig breeding industry. In the third quarter of 2021, 11 of the 25 pig industry companies suffered losses in net profits. According to the performance forecast statistics, not only Wens Foodstuff Group Co.Ltd(300498) , the “pig raising brother” with higher market value also released the expectation of the expected decline of 70.86% ~ 76.32% in the annual net profit in 2021.
It is also a blue chip stock recognized by the market. In 2021, when the new energy vehicle industry broke out, at the same time, Shenzhen Everwin Precision Technology Co.Ltd(300115) with important customers such as Tesla, Contemporary Amperex Technology Co.Limited(300750) , apple and so on, the performance suddenly appeared the phenomenon of “thunder explosion”. And looking at the historical data, this will be the company’s first performance loss since its listing in 2010.
We analyzed three-thirds of the financial statements disclosed by the company in 2021. Although all the profits have been shown to people, there was a sign of loss in the third quarter. If we look at the profit in a single quarter, there was a loss of 79 million yuan in a single quarter in the third quarter, but the loss in the fourth quarter obviously showed a trend of further deterioration, The annual loss forecast disclosed in the notice was 490 million yuan to 690 million yuan. Combined with the company’s net profit statistics of 157 million yuan in the third quarter, the company’s single quarter loss in the fourth quarter was about 647 million yuan to 847 million yuan. For the reasons for the performance loss, the company has put forward several reasons, including the increase of R & D expenses, the impact of core shortage, the rise in the price of raw materials, inventory impairment, etc.
performance also sustained losses
the stock price trend is quite different
Although the performance showed a continuous loss trend, combined with the market performance, the stock price trend of Wens Foodstuff Group Co.Ltd(300498) did not recover. Since the intraday low of 12.14 yuan on July 30, 2021, the stock price has fluctuated and risen all the way. On January 6 this year, it once rose to 21.65 yuan. Even if there is a correction later, the increase at this stage is still as high as 56.06%. Just recently, many securities companies began to “platform” for Wens Foodstuff Group Co.Ltd(300498) . For example, China Merchants Securities Co.Ltd(600999) consumer goods analyst Xiong Chenghui said that the company’s operation has reached an inflection point, and the cost is expected to continue to improve. After full impairment provision, the profit is expected to lead the pig price to the bottom. Zhong Kaifeng, an Guotai Junan Securities Co.Ltd(601211) agricultural analyst, also believes that the company’s marketing is expected to achieve rapid growth in 2022, the cost is expected to continue to decline, the company’s breeding performance will reverse, and it is inferred that the pig cycle is expected to reverse from April to May this year
Figure 1 Wens Foodstuff Group Co.Ltd(300498) trend
In fact, the market has a lot of speculation about when the pig cycle will usher in the inflection point. There are views after the Spring Festival, in the middle of the year and in the third quarter. Although there are different opinions, it is still inconclusive when it will be the end.
However, it is worth noting that although the pig industry is in a downward cycle and the company’s performance continues to suffer losses, in the third quarter of 2021, the company won the favor of Feng Liu, the star fund manager of Gaoyi assets. At the end of the third quarter, with a position of 71.5 million shares, the company newly became the fifth largest circulation shareholder of the company. If Feng Liu does not reduce or sell off his holdings in the fourth quarter, Feng Liu’s stock market value of Wens Foodstuff Group Co.Ltd(300498) will achieve a floating profit of about 347 million yuan.
In contrast, the stock price trend of Shenzhen Everwin Precision Technology Co.Ltd(300115) is obviously weak. Since the company reached a stage high of 33.68 yuan at the beginning of 2021, the stock price has shown a trend of shock and decline for a long time. So far, the cumulative decline is as high as 51.5%, and the stock price has been halved. In fact, Shenzhen Everwin Precision Technology Co.Ltd(300115) has always been the heart of institutional funds. Looking at the top ten shareholders of the company at the end of the third quarter of last year, eight seats came from institutional funds outside China, including HSBC Jinxin low-carbon Pioneer stock fund, HSBC Jinxin dynamic strategy hybrid fund, national social security 401 portfolio, Hong Kong Central Clearing Co., Ltd., etc. However, it is clear that the increase of institutional funds did not make the company’s share price show a positive vitality.
In recent years, Shenzhen Everwin Precision Technology Co.Ltd(300115) is gradually developing from precision manufacturing to intelligent manufacturing. Its business extends to markets such as mobile communication terminals, new energy vehicle components, Siasun Robot&Automation Co.Ltd(300024) and intelligent manufacturing. In terms of business, the company’s customers are not lack of industry giants, and in the field of consumer electronics, Shenzhen Everwin Precision Technology Co.Ltd(300115) is the supplier of head mobile phone brands such as apple, Huawei and Xiaomi; In terms of new energy vehicles, Shenzhen Everwin Precision Technology Co.Ltd(300115) is an important supplier of Tesla parts, and Contemporary Amperex Technology Co.Limited(300750) a leading power battery enterprise is also its important customer. Whether new energy vehicles or Siasun Robot&Automation Co.Ltd(300024) , Shenzhen Everwin Precision Technology Co.Ltd(300115) is an industry with upward prosperity and in line with the policy direction. However, under the background of serious “core shortage”, the company’s performance made it suffer huge losses for the first time. Although the company has focused on the field of new energy, the proportion of its new energy vehicle business revenue is not high, only about 10%. The revenue of electronic connectors and intelligent electronic products accounted for nearly half, and the revenue of consumer electronic precision structural parts and modules accounted for nearly 40%. Therefore, “lack of core” may be the most important reason for Shenzhen Everwin Precision Technology Co.Ltd(300115) this time
Figure 2 Shenzhen Everwin Precision Technology Co.Ltd(300115) trend
