The last opportunity to convert shares, don’t forget this operation!
Tomorrow (January 27), Junda convertible bond (128050) will usher in the last trading day and the last stock conversion day. Then it will be forcibly redeemed at a redemption price of 100.21 yuan / piece. As of the closing on January 25, the closing price of Junda convertible bonds was as high as 446.996 yuan. If the holder does not seize the last opportunity to sell or convert shares, the loss may exceed 77%.
It’s too late to take action before the market closes at 15:00 tomorrow!
Source: announcement of listed companies
do not convert shares or sell second loss 77%
Hainan Drinda Automotive Trim Co.Ltd(002865) recently, a series of announcements have been issued, suggesting that Junda convertible bonds will be redeemed in advance.
The redemption conditions of Junda convertible bonds were triggered at the same time (the closing price of A-share shares on 15 trading days in 30 consecutive trading days was not less than 130% of the current conversion price of “Junda convertible bonds”) and the face value was less than 30 million yuan (the balance of “Junda convertible bonds” bonds was 28.6863 million yuan after the market closed on January 20), and the trading date was finally determined to be January 27, 2022.
The announcement shows that the redemption registration date of Junda convertible bonds is January 27, 2022, and the redemption price is 100.21 yuan / piece. As of January 27, 2022, the “Junda convertible bonds” that have not been converted into shares after the closing of the market will be forcibly redeemed. After this redemption, the “Junda convertible bonds” will be delisted from the Shenzhen Stock Exchange.
Hainan Drinda Automotive Trim Co.Ltd(002865) it is suggested that January 28, 2022 is the redemption date of “Junda convertible bonds”. On that day, the company will redeem the remaining “Junda convertible bonds” that have not been converted into shares at the price of 100.21 yuan / piece, and the arrival date of investors’ redemption money is February 11, 2022.
Hainan Drinda Automotive Trim Co.Ltd(002865) it is suggested that due to the large difference between the current secondary market price and the redemption price, investors may face losses if they fail to convert shares in time.
On January 25, Junda convertible bonds fell slightly by 0.89% to close at 446.996 yuan. Based on this calculation, if investors do not convert shares or sell them in time and the convertible bonds are forcibly redeemed, they will lose 346.786 yuan per share, accounting for more than 77%.
According to the data, as of the closing on January 25, 2022, the balance of Junda’s convertible bonds was 21 million yuan, and the proportion of non convertible shares was 6.67%.
convertible bonds ushered in a dense redemption period
Different from the non redemption of more than one convertible bond in January, there will be an intensive redemption period of convertible bonds.
As of January 25, in addition to Junda convertible bonds, there are 9 convertible bonds that will be redeemed in advance, and the redemption registration date is mostly in February.
As of the closing on January 25, the closing prices of the above convertible bonds were higher than the mandatory redemption price. If investors do not convert or sell shares in time, they may also suffer great losses.
It is worth mentioning that, in addition to the above 10 convertible bonds announced to be redeemed, 74 convertible bonds announced not to be redeemed, and one convertible bond of Huguang convertible bond has triggered the redemption clause, but it has not yet announced whether to redeem.
Zheshang Securities Co.Ltd(601878) the research report said that there has been a significant increase in the varieties of non forced redemption since 2021. Such decisions are mostly based on the duration, the holding of major shareholders, the will of investors, the occupation of financial expenses and other considerations. As an important exit means of convertible bonds, forced redemption still needs to be paid high attention. At present, there are still relatively many potential forced redemption targets, and there have been cases of forced redemption of convertible bonds with low expectation of forced redemption in the early stage. Investors should carefully participate in the forced redemption game and pay close attention to the announcement of the company.
caution under high valuation
Since December 2021, the supply and demand of convertible bonds have been booming and the momentum has been strong. The 23 newly listed convertible bonds increased by an average of 30.49% on the first day. The first day of listing of special paper convertible bonds and Tailin convertible bonds increased by 40% to 49.38% and 43.50% respectively. The enthusiasm of innovators was high, and the number of effective online subscription households of guiran convertible bonds reached 11.1 million, about 11.19 million, breaking the record of effective online subscription households.
In recent days, affected by market fluctuations, the CSI convertible bond index has corrected. As of the closing on January 25, it has fallen by 1.88% this year, but it is still stronger than some equity indexes. Over the same period, the Shanghai Composite Index fell 5.68% and the Shenzhen composite index fell 7.9%.
Citic Securities Company Limited(600030) the research report suggests that the overvalued level of the convertible bond market has led to large fluctuations in the prices of many “double high” individual bonds, and it is still necessary to continue to avoid such targets. The main market opportunities are still concentrated in the direction of steady growth. In terms of operation, adhere to the balance from flexible strategy to price strategy, and can appropriately ambush low-level targets.
Qin Han, chief analyst of Guotai Junan Securities Co.Ltd(601211) fixed income, believes that considering the great pressure in the equity market before the festival, it is suggested to pay more attention to the convertible bonds with lower prices. For the low price bid with high conversion premium rate, the bond selection shall be considered in combination with the positive stock elasticity.
