6 days 5 up limit! "China's richest village" has become a "hard tech" leader?

Q: "Which is the richest village in China?" ”

Answer: "Huaxi Village! ”

More than a decade ago, the question "Which is the richest village in China?" Almost everyone will blurt out "Huaxi Village", because the impact of Huaxi Village on China's rural economic development is too great, and it sets an example for the construction of China's new countryside.

However, after more than ten years have passed, let's take a look at the situation in Huaxi Village. Although Huaxi Village achieved A-share listing through corporate operation as early as 1999, its performance in the first ten years of listing was indeed as strong as its name, but in the past ten years, not only has its revenue lost its growth momentum, but it has also fallen into rumors such as bankruptcy and bankruptcy.

Recently, A-shares have risen to hype the enthusiasm of optical modules and optical chips, and Huaxi shares have suddenly transformed into leading stocks in the concept of optical chips, which has attracted much market attention.

Huaxi Village has become a "hard technology" leader

It seems that everyone can know and understand the story of Huaxi Village, but it seems that the main business of Huaxi Village cannot be clearly explained in one or two sentences.

At the beginning, Huaxi Village organized villagers to abandon the idea of "only know how to farm", and built factories in the village, including food factories, printers, machinery factories, etc., and later began to operate in a more diversified direction after building factories to become rich, once involving more than ten industries such as steel, textiles, materials, commerce, finance, tourism, storage, and electricity, and the total assets of Huaxi Group, the main operator of Huaxi Village, once exceeded 60 billion.

At present, Huaxi (000936.sz), which is still trading normally in A-shares, is also the main listed entity of Huaxi Village, and its main business is the research and development, production and sales of polyester chemical fiber, petrochemical logistics and warehousing services, merger and acquisition investment and asset management business. In 2022, the company's chemical fiber business revenue will be 2.685 billion yuan, accounting for 91.71%, warehousing business income will be 206 million yuan, accounting for 7.03%, and other business income will be 36.7689 million, accounting for 1.26%.

However, the recent speculation of optical chips in the A-share market has made Huaxi shares, which is mainly engaged in chemical fiber, become a "hard technology" leader!

As of today, the stock price of Huaxi shares in the latest week has been up for 4 consecutive days, and the last 6 trading days have harvested 5 limit increases, which has doubled since the end of May, soaring by more than 106%, and the latest market value has reached 11.16 billion, corresponding to a price-earnings ratio of 125.88 times, and once plummeted by more than 70% before the stock price rally.

6 days 5 up limit! "China's richest village" has become a "hard tech" leader?

(Screenshot of the stock price trend of West China shares)

The reason for the skyrocketing stock price of Huaxi shares is related to the hot speculation of optical modules and optical chips.

On June 15, Huaxi issued an announcement on the stock price change, showing that there were no major matters that should be disclosed but were not disclosed. However, the interactive platform of Huaxi is full of discussions about optical modules and optical chips.

(Screenshot of Huaxi Interactive Platform)

It can be seen that the current market speculation of Huaxi shares may be its holding through Shanghai Qilan Sols Optoelectronics, because Sols Optoelectronics has 800G optical module products and has been delivered in small quantities. This is actually similar to the Yueling shares (002725.sz) that were speculated last week, and Yueling shares were also speculated by the market because of its indirect stake in Zhongke Optoelectronics, which produces optical chips.

The profit of the main business continued to decline, and the concept was frequently rubbed during the year

Like Yueling shares, as the "first village in the world" Huaxi Village listed subject Huaxi shares, although its current main business is chemical fiber, in fact, the main business has continued to decline, in this case the company is more enthusiastic about financial investment, the difference is that Huaxi shares have a larger scale of financial investment.

Let's take a look at the operating performance of West China in the past ten years.

(Source: Flush website)

It can be seen that the non-net profit of Huaxi shares in the past ten years is very unstable, most times, the non-net profit in 2016 exceeded 600 million, and when it was less, it even lost nearly 66 million yuan in 2020.

Although it achieved a non-net profit of 201 million yuan in 2022, the corresponding year-on-year growth rate was -40.27%, a sharp decline from 2021, and such a decline was also common in the past decade, earning 550 million yuan in 2019, a direct loss of more than 60 million yuan in 2020, 602 million yuan in 2016, and directly falling to 167 million in 2017, plummeting 72.27%.

The fluctuation of the main business performance seems to have prompted Huaxi to engage in financial investment business, and with the unstable performance of the main business in the past ten years, the proportion of trading financial assets, long-term equity investment and other illiquid financial assets held by the company is relatively high!

(Source: Flush website)

It can be seen that in recent years, Huaxi shares seem to be relatively more enthusiastic about equity investment, because trading financial assets and other non-current financial assets are declining year by year, and only long-term equity investment is increasing year by year.

The enthusiasm for equity investment may be related to Huaxi's "M&A investment and asset management" as its main business, but at the same time, the company has also begun to be keen on various concepts in the secondary market. Up to now, Huaxi Co., Ltd. has a number of popular concepts such as optical communication, artificial intelligence, chips, venture capital, 5G, and equity participation finance.

On February 14 this year, Huaxi Co., Ltd. said on the interactive platform that "there is no CPO related technology" and "the shareholding subsidiary GTI is involved in artificial intelligence chips, which has not yet been mass-produced", and on May 5, it actively said that "Sols Optoelectronics, which participates in the shares, involves the optical module business".

(Screenshot of Huaxi Interactive Platform)

As you know, this year's A-share fanaticism about CPO, artificial intelligence, AI, optical modules, whether you have it or not, as long as you mention these words, the market will treat you as a concept stock to speculate!

In fact, the share price of Huaxi shares has risen by nearly 150% since the beginning of the year.

After bankruptcy rumors, actively "deleveraging"

As mentioned above, Huaxi Co., Ltd. was most actively engaged in financial investment in 2019, when the company held 6.053 billion trading financial assets, 1.698 billion long-term equity investment, and 2.969 billion other non-current financial assets, with a total of 10.72 billion financial assets, while the company's total assets that year were only 13.171 billion yuan, accounting for 81.39% of financial assets.

This is almost all in financial investment!

However, along with Huaxi Shares' All in Financial Investment, rumors about the liquidity crisis in Huaxi Village also began to catch on this year.

In 2019, the total debt of West China was 7.288 billion yuan, and the debt ratio was 58.51%. However, by 2022, its total debt has fallen to 1.34 billion yuan, and its debt ratio has dropped to 20.98%, which is not a high debt level of 20%.

(Source: Flush website)

Being able to actively find problems and actively reduce debts shows that Huaxi Co., Ltd. is still actively looking for solutions in the face of debt pressure, and at the same time compresses its investment scale in financial products year by year, so as to achieve the purpose of reducing the company's overall business risk.

However, one thing that has to be admitted is that Huaxi shares, which have experienced a liquidity crisis, are not as beautiful as before, and now they have to rely on hot concepts to rise sharply!