In less than a month, the stock price has nearly tripled! "Big bull stocks" Phoenix Optics disclosed three quarterly reports tonight, pouring cold water on investors who are chasing the rise.
On the evening of October 25, Phoenix Optics announced that it achieved operating income of 1.135 billion yuan in the first three quarters, an increase of 34.89% year-on-year; net profit of 10.0472 million yuan, an increase of 1136.73% year-on-year. Net profit in the third quarter was 108,700 yuan, down 97.66% year-on-year.
Source: Company Announcement
For the reasons for the cliff-like decline in net profit in the third quarter, Phoenix Optics did not elaborate. In the stock bar of Phoenix Optics, some investors began to worry, "tomorrow will start to count the number of drops and stop boards."
Source: Shares
The company frequently issues risk warning announcements
Phoenix Optics released a major asset restructuring plan on the evening of September 29. The company intends to issue shares to electronic materials and other materials to purchase 100% of the equity of Guosheng Electronics and 100% of the equity of Puxing Electronics, so as to enter the semiconductor industry.
Phoenix Optics said that through this transaction, the company will strategically withdraw from the optical equipment industry, and the future business will be positioned in semiconductor epitaxial materials, and the main business includes the research and development, production and sales of semiconductor epitaxial material products.
Since the announcement, the company's stock price has soared, and from September 30 to October 21, it has gained 11 consecutive up-and-down boards. Shares rose on Oct. 22 and then retreated, falling 2.8 percent by the close. At the close of trading on October 25, the stock price turned red, up 2.34%.
Source: Flush
Since Phoenix Optics announced its major asset restructuring plan on the evening of September 29, the company's stock price has risen by the highest by 198.86%, and in less than a month, the stock price has nearly tripled. The rise in the stock price has also allowed the company's price-to-earnings ratio to soar, with the latest rolling price-earnings ratio reaching 522.29 times.
During this period, Phoenix Optics also frequently issued risk warning announcements. The company said that in recent years, the domestic demand for semiconductor products has expanded rapidly, which has promoted the rapid development of the industry and attracted domestic and foreign enterprises to enter the market, and the competition has become increasingly fierce. At the same time, in recent years, the price of raw materials used in the main production of the target company to be purchased has also increased. In the increasingly fierce external market environment, if the company to be purchased cannot continue to upgrade its technology, improve product performance and service quality, optimize the marketing network and maintain major customers, it may lead to the loss of market competitiveness of the products of the company to be purchased, thus bringing uncertainty to the company's continuous growth.
On the evening of October 21, Phoenix Optics issued an announcement that the company expects the static price-to-earnings ratio (price per share / earnings per share of the target company to be purchased after the completion of the offering) to be higher than the price-earnings ratio of the semiconductor industry, and the stock price is significantly higher than the issue price of the assets to be purchased, and there may be a risk of stock price decline in the future.
Deferred response to the inquiry letter
After Phoenix Optics disclosed a major asset restructuring plan and announced its intention to enter the semiconductor industry, the Shanghai Stock Exchange also issued an inquiry letter to it on October 19.
The SSE inquired a total of 9 questions on the three aspects of the transaction plan, the assets to be placed and the assets to be placed, and asked Phoenix Optics to explain the main products, application areas, links of the industrial chain, the main added value provided, technical thresholds, and explain its market position and core competitive advantage in combination with the situation of competitors in the same industry.
However, in response to the inquiry, Phoenix Optics issued an extension of the reply announcement on the evening of October 25, saying that in view of the audit and evaluation work involved in the relevant matters in the "Inquiry Letter" is underway, some matters and data need to be further verified and supplemented, and confirmed and improved in combination with audit, evaluation and other related work, in order to ensure the accuracy and completeness of the reply content, after applying to the Shanghai Stock Exchange, the company will postpone the reply to the "Inquiry Letter", and the extension time is expected to not exceed 5 trading days.
Editor: Song Zhaoqing, Cao Shuai