Yang Dong, a rarely exposed private equity tycoon, once again joined hands with Dong Chengfei to investigate. After Feilida, this time they appeared on the research list of China New Group.
It is worth noting that Zhongxin Group is also Yang Dong's love stock, and its Ningquan assets have increased their positions in the target for three consecutive quarters. However, judging from the stock price trend of Zhongxin Group, Yang Dong has taken several roller coasters.
Yang Dong investigates heavy stocks
On November 24, Sino-Singapore Group finally released the survey minutes for November 10. Judging from the survey minutes, on the afternoon of November 10, Yang Dong took Yu Jingyu, Shen Qin, Sun Zhe, Qian Minwei and Zhang Bin of Ningquan Assets, together with Du Changyong and Tang Sheng of Rui County Assets, and Dong Chengfei of Xingquan Fund to conduct field research on Zhongxin Group.
Yang Dong and Du Changyong were both veteran figures of Xingquan Fund, and also the old leaders of Dong Chengfei at that time, and after leaving Xingquan Fund, they both founded well-known private equity.
It is worth noting that Yang Dong's Ningquan Assets also holds a heavy position in Zhongxin Group, and has increased its position for many consecutive quarters. Specifically, at the end of the first quarter of this year, Ningquan Zhiyuan No. 58 Private Equity Fund became the top ten newly promoted shareholders of Zhongxin Group, holding 2.8355 million shares, adding 297,500 shares in the second quarter and 252,200 shares in the third quarter. As of the end of the third quarter, the above-mentioned private equity funds held a total of 3.3852 million shares.
Judging from the stock price of Zhongxin Group, Yang Dong has taken multiple roller coasters, and if he does not do the swing band, it may be difficult to make a profit. From April 1 to June 28, The stock price of Zhongxin Group rose by more than 12%, and since then the stock price has continued to fall, falling by more than 13% in more than a month as of August 6. From August 6 to November 9, the company's stock price rose and fell again. However, since the investigation of Yang Dong and his party, the stock price of Zhongxin Group has once again entered a round of rising cycle, and from November 10 to November 26, the stock price of Zhongxin Group has risen by more than 9%.
From the perspective of the company's background, Sino-Singapore Group was established by China and Singapore in August 1994, and its business includes park development and operation, industrial carrier support, green public utilities and diversified services. At present, the development and operation business of the park is the company's most important source of revenue and profit.
In this investigation, what questions did Yang Dong and Dong Chengfei ask?
Judging from the announcement, the institution pays more attention to the profit model and profit sources of The Sino-Singapore Group. Zhongxin Group said that the main model of the development and operation business of the park is the government agreement entrusted development mode, specifically the BT model, the agreement sharing model and the PPP model, that is, the company, as the main body of the development and operation of the park, completes the overall planning and design, infrastructure construction, comprehensive development investment, software transfer, investment and pro-business work for the projects in the cooperation zone, so as to obtain the corresponding consideration income. The "Park in the District" business is the main industrial carrier to obtain stable rental and value-added income, and in the future, it will adopt REITs and other methods to achieve rolling development in a timely manner, and continuously expand the scale of assets under operation and management.
The agency further asked: "What is the company's cash flow and inventory situation?" ”
Zhongxin Group said that a number of projects have gradually entered the mature and harvest period, and as of September 30, 2021, the balance of cash and cash equivalents at the end of the period was about 3.428 billion yuan. The ending balance of inventory is about 10.1 billion yuan, mainly due to the infrastructure construction costs and land relocation costs of the park development projects.
The "Xingquan Department" survey focuses on small and medium-sized market capitalization companies
Interestingly, the survey minutes released earlier by Feilida show that on the morning of November 10, Yang Dong and Dong Chengfei and their party also conducted field research on them, and Li Chenglin of China-Singapore Group also appeared in the research list.
The combing found that Feilida and Zhongxin Group were in Suzhou, which meant that Yang Dong and his party were quite busy on the same day, conducting field research on two listed companies in one day. And the current market value of Feilida and Zhongxin Group is not large, of which the market value of Zhongxin Group is less than 15 billion yuan, and the market value of Feilida is less than 4 billion yuan, and there is basically no exclusive research report in the past two years.
In fact, from the perspective of the recent overall survey, the research of Ningquan Assets, Xingquan Fund and Rui county assets has overlapped many times, and also focuses on small and medium-sized market capitalization companies. Since November 10, in addition to Sino-Singapore Group and Feilida, Ningquan Assets has investigated OFILM, Leyard, Ogawa, Yonggao Shares, Aohua Endoscopy, etc.
Among them, the survey of Riyad on November 18, Rui County Assets and Xingquan Fund also participated, and the survey of Ogawa on November 17, Rui County Assets also attended. It is worth mentioning that Aojiahua is also the "love stock" of Xingquan Fund and Ningquan Assets. As of the end of the third quarter, Xingquan Herun, Xingquan Business Model, Xingquan Heyi and Ningquan Zhiyuan No. 58 Private Equity Fund were among the top ten shareholders of Ogawa.
In the roundtable forum of the Buffett Shareholders' Meeting China Investor Summit in May this year, Dong Chengfei and Yang Dong had an open discussion on how to invest, which may have certain reference significance for understanding their investment logic.
In Yang Dong's view, investment needs to predict the future, especially growth stock investment. "Many times we have to understand the laws of some industries, business models, and some basic competition laws of enterprises, and only on this basis can we make predictions." In investment, we still have to be conservative, Buffett's thinking of the margin of safety profoundly tells us: people will make mistakes, we must consider the possibility and probability of making mistakes, and we must leave a good margin of safety. ”
Dong Chengfei said that in the early years, I paid more attention to the static financial indicators of enterprises, but in recent years, there will be more enterprises in the future. "When it comes to the future, the proportion of corporate management is indeed getting higher and higher."