Jingjing Pharmaceutical was speculated by funds for 21 days and 14 boards, and it announced that it had not cashed out to the shareholder executives of Pfizer supply

Yangtze River Business Daily news ● Yangtze River Business Daily reporter Ming Hongze

The new crown pneumonia epidemic has ravaged the world, and the new crown pneumonia oral medicine has attracted market attention. Essence Pharmaceuticals (002349. SZ) was therefore hyped up by market funds.

On January 20, in the secondary market, Jingjing Pharmaceutical once again rose and fell, and the stock price was 20.81 yuan / share.

This is the 14th stop-and-go board harvested by Essence Pharmaceutical in the past 21 trading days. The company's stock price rose from 6 yuan / share to 20.81 yuan / share, a cumulative increase of 246.83%.

The sharp rise in the stock price of Jingjing Pharmaceutical stems from the concept of "new crown oral medicine". Previously, it was reported in the market that Jingjing Pharmaceutical subsidiary produced and sold ritonavir series of pharmaceutical intermediates and supplied them to Pfizer. In this regard, Jingjing Pharmaceutical stated that there is no direct supply for the time being.

According to public information, in December last year, Pfizer "Paxlovid" was approved by the FDA as the first oral drug for new crown in the United States.

The reporter of Changjiang Business Daily found that the stock price of Jingjing Pharmaceutical deviated from the performance. In the first three quarters of last year, the company's net profit after deducting non-recurring gains and losses (referred to as non-net profit) was 0.93 billion yuan, down 6.77% year-on-year. In addition, the company's shareholders and directors and supervisors are planning to reduce their holdings at a high level to cash out.

Five times the risk warning stock price is still up more than 2 times

With the concept and the expectation, even if the risk is great, it is difficult to stop the pursuit of funds. Essence Pharmaceuticals is one such company.

On the evening of January 19, Jingjing Pharmaceutical issued an announcement of abnormal stock trading fluctuations, but on the 20th, Jingjing Pharmaceutical performed more strongly.

In the morning of January 20, Jingjing Pharmaceutical opened at a stop price, and in the afternoon, it was once smashed open by a huge amount of money, but it was quickly sealed. Until the end of the afternoon trading, the stock price was still up and down, up 9.99%, closing at 20.81 yuan / share.

The candlestick chart shows that the current round of markets of Essence Pharmaceuticals was launched on December 22, 2021. On December 21, the company's stock price rose 1.87%, closing at 6 yuan / share. On the 22nd, the morning session was almost flat, slightly downward and upward, and suddenly forced in the afternoon, quickly sealing the limit. On the 23rd, the stock price adjusted, down 3.64%, closing at 6.36 yuan / share. After a brief correction, Essence Pharmaceutical accelerated its rise. In the 8 trading days from December 24 last year to January 5 this year, Jingjing Pharmaceutical closed out 8 up and down boards.

After 8 consecutive stops, Jingjing Pharmaceutical carried out a two-day correction and then turned its head upwards. On January 13, it opened the limit mode, and on the 13th, 14th and 17th, it went up and down for three consecutive trading days. On January 18, its intraday limit was raised, but the limit board was opened, and finally closed up 6.90%, followed by the 19th and 20th, and it was a continuous limit.

So far, in 21 trading days, Jingjing Pharmaceutical has gained 14 limits, and its stock price has soared from 6 yuan / share to 20.81 yuan / share, with a cumulative increase of 246.83%.

During this period, including January 19, Jingjing Pharmaceutical issued a total of 5 announcements of abnormal fluctuations in stock trading. Judging from the content of these announcements, it is basically the same, and there is no dry goods.

The sharp surge in the stock price of Jingjing Pharmaceutical stems from the concept of being labeled as a "new crown oral drug".

On December 22, 2021, Pfizer "Paxlovid" was approved by the FDA as the first oral COVID-19 drug in the United States. Influenced by Pfizer's special drugs, pharmaceutical intermediates have become a hotly sought after concept in the market for a while.

Jiangsu Senxuan Pharmaceutical Co., Ltd. (hereinafter referred to as "Senxuan Pharmaceutical"), a holding subsidiary of Jingjing Pharmaceutical, does produce and sell ritonavir series pharmaceutical intermediates. In 2021, Senxuan Pharmaceutical Ritonavir Pharmaceutical Intermediates is expected to achieve sales of 11 tons and achieve sales revenue of 16.84 million yuan, down about 33% and 32% year-on-year, respectively.

The reporter of Changjiang Business Daily found on the investor interaction platform that in the past half a month, a number of investors have left messages asking about the relevant situation of the essence pharmaceutical ritonavir intermediate and Pfizer in the treatment of new crown oral drugs.

On January 4, the investor proposed that "the 2019 semi-annual report of subsidiary Jiangsu Senxuan clearly states that it provides high-quality products for Gilead in the United States and is an important customer of the company." Has the subsidiary provided ritonavir intermediates to Gilead Corporation? The company replied, "The company's subsidiary Senxuan Pharmaceutical currently has no direct supply cooperation with Gilead in the United States." On January 5, the company replied again on similar issues, saying, "In 2019, the company's subsidiary Senxuan Pharmaceutical and Gilead did cooperate, and there is currently no cooperative supply." ”

On January 20, Jingjing Pharmaceutical once again appeared on the Dragon and Tiger list, and the top five seats were all free money, and the signs of capital speculation were obvious.

The first three seasons of last year did not decline

The stock price soared more than 2 times and was not supported by fundamentals. The fundamentals of Essence Pharmaceuticals lack bright spots.

Jingjing Pharmaceutical is a well-established pharmaceutical manufacturing enterprise, its main products are proprietary Chinese medicines, APIs and pharmaceutical intermediates, at the same time, the company is also engaged in the research and development, production and sales of Western medicine preparations.

In 2010, Jingjing Pharmaceutical landed on the A-share market, and its operating performance after listing was average. From 2010 to 2014, its operating income increased from 274 million yuan to 578 million yuan, while the net profit attributable to the shareholders of the listed company (hereinafter referred to as the net profit) was a low fluctuation, in 2010, the net profit was 0.43 billion yuan, and from 2011 to 2014, it was 0.48 billion yuan, 0.49 billion yuan, 0.36 billion yuan and 0.39 billion yuan, respectively. From 2010 to 2014, the company's non-net profit was 0.42 billion yuan, 0.32 billion yuan, 0.34 billion yuan, 0.34 billion yuan and 0.26 billion yuan, respectively.

In the past five years, net profit and deduction of non-net profit have basically stagnated in place.

Since 2015, with the help of mergers and acquisitions, the operating performance data of Jingjing Pharmaceutical has looked much better. Wind data shows that from 2015 to 2018, Jingjing Pharmaceutical has successively acquired more than 10 companies such as Fuyuan Biological, Kinseley, Huisenbao Company, Dongli Enterprise Management, Wannian Chang Pharmaceutical, Alpha Pharmaceutical, Nantong Senxuan and so on.

From 2015 to 2018, the net profit achieved by the company was 0.78 billion yuan, 165 million yuan, 175 million yuan and 230 million yuan, respectively.

However, in 2019, the performance of the target company acquired at a premium did not meet expectations, and the impairment of goodwill, bad debt losses, inventory declines, etc., totaled 650 million yuan, resulting in a loss of 394 million yuan for Jingjing Pharmaceutical in that year. In 2020, there was another impairment of goodwill, inventory decline, and impairment of construction in progress, totaling 190 million yuan. In that year, the company's net profit was 111 million yuan, deducting non-net profit of 101 million yuan, although it achieved a turnaround from loss to profit year-on-year, but it has not yet recovered to the level of 2018. In the first three quarters of 2021, its non-net profit was 0.93 billion yuan, which not only did not return to the same period in 2018, but also fell by 6.77% year-on-year.

The performance was not good, the stock price rose sharply one after another, and the shareholders and directors and supervisors of Jingjing Pharmaceutical were eager to move and plan to reduce their holdings at a high level.

On the evening of December 22, 2021, the first up-and-down board of this round of quotations, Nantong Variety Investment Co., Ltd., a shareholder holding more than 5% of the shares of Jingjing Pharmaceutical, and Zan Shengda disclosed the plan to reduce their holdings by no more than 2% of the total share capital of Jingjing Pharmaceutical in the 6 months from January 17, 2022 to July 16, 2022. At present, the two together hold 9.78% of the company's equity.

On January 20, Jingjing Pharmaceutical still rose and fell, and the above two shareholders could reduce their holdings at a high level and cash out.

In addition, the directors and supervisors of Jingjing Pharmaceutical also plan to cash out at a high level.

On the evening of January 3 this year, Zhou Yunzhong, vice chairman, general manager and chief engineer of Jingjing Pharmaceutical, disclosed the plan to reduce its shareholding, and it intends to reduce its holding of 966,000 shares of the company, accounting for 0.12% of the total share capital, from 15 trading days after the date of the announcement disclosure to July 25, 2022.

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Editor-in-charge: ZB

This article originated from the Yangtze River Business Daily