Promise not to reduce holdings for 5 years? First calculate how much return this quick-frozen faucet has given to the capital market
Author: Taylor, Editor: Xiaoichi Mei
On the first trading day after announcing its search for listing on the Hong Kong Stock Exchange, Yasui Foods was directly pressed to the fall limit.
A few days ago, Anjing Food (603345. SH) announced that the controlling shareholder Fujian Guoli Minsheng promised to voluntarily extend the share lock-up period, and it will not reduce its holdings of the company's shares in any way in the next five years, showing the controlling shareholder's confidence in the company's future development and recognition of the company's intrinsic value.
However, some investors don't admit it.
It's not that the market is intolerant, the reason has to be found from the company.
In 2017, Anjing Food was listed on the A-share market, and in the past seven years, the company has launched a total of four financings in the capital market, including IPO raising 601 million yuan, and three refinancings, namely 500 million yuan of convertible bonds in 2018, 900 million yuan of convertible bonds in 2020, and 5.675 billion yuan in 2022, with a cumulative financing scale of about 7.7 billion yuan.
So how much has Yasui Food returned to the capital market?
Since its IPO, the company's cumulative dividends have only been 1.25 billion, less than one-sixth of the money it took from the capital market. In 2022, Yasui Food's dividend payout ratio was 30%, while the overall average of A-shares was 40.30% in the same period.
Huge financing will not only have a blood-pumping effect on the market, but also hurt the equity value of the enterprise itself, and the earnings per share and ROE level will be lowered in the short term. In 2020, Yasui Food's weighted return on equity was 19.52%, and in 2022, only 10.72% remained. The only hope is that the funds raised later will bring greater returns, but is this really possible?
In 2017, the total design capacity of each factory of Anjing Food was 328,000 tons, and by 2022, this data will be 944,000 tons, an increase of nearly two times during the period, and the capacity utilization rate during this period is often above 100%, that is, the capacity expansion can be digested and absorbed. According to the company's announcement, the fund-raising projects are 133,000 tons of production capacity in Anjing in Guangdong, 200,000 tons in Anjing in Shandong, 140,000 tons in Henan Phase III, 100,000 tons in Taizhou Phase III, 140,000 tons in Liaoning Phase III, and technical transformation projects in Sichuan, Liaoning and Taizhou factories, with a cumulative new production capacity of more than 700,000 tons.
After the new project is fully put into operation, it will increase the production capacity by nearly 80% on the original basis, which is not a small amount, and the capacity utilization rate of Anjing Foods has dropped to 92% in 2022. As of the first half of 2023, the company's 5.675 billion fixed increase has only used more than 2 billion, and there are still more than 3 billion lying on the account.
The established project has not yet been completed, and it is still unknown whether it can be digested by the market.
From 2018 to the second quarter of 2023, Liu Mingming, chairman of Anjing Foods, Zhang Qingmiao, general manager, and Huang Qingsong, deputy general manager, decreased their shareholding from 12.64%, 5.35%, and 2.94% to 4.19%, 2.31%, and 0.78% respectively, accounting for 13.65% of the company's total share capital. From June to September 2022, the controlling shareholder Guoli Minsheng reduced its holdings of 5.2 million shares of Anjing Food through centralized bidding and block trading, cashing out 690 million yuan. In the first half of 2023, Guoli Minsheng will continue to reduce its holdings of 14.6647 million shares of the company, accounting for 5.00% of the company's total share capital, with a total of 2.27 billion yuan.
Roughly calculated, the management and controlling shareholders of Anjing Foods have cashed out at least 6 billion yuan in the past few years, which is also an important reason why the share price of Anjing Foods has been smashed. According to market value observation statistics, the company's stock price has shrunk by more than 70% from its high point in February 2021, and its market value has evaporated by more than 40 billion.
Fortunately, policies and regulations are already shifting, for example, the new regulations on reducing holdings issued in 2023 clearly stipulate:
If a listed company has a broken issue or broken net value, or has not paid cash dividends in the past three years, and the cumulative cash dividend amount is less than 30% of the average annual net profit in the past three years, the controlling shareholder or actual controller shall not reduce the company's shares through the secondary market.
On January 24, Wang Jianjun, vice chairman of the China Securities Regulatory Commission, made it clear in an interview with the media that he would further improve the quality evaluation standards of listed companies, highlight the return requirements, and vigorously promote listed companies to better return investors through repurchase and cancellation, increasing dividends, etc. At the same time, we should improve the evaluation mechanism of sponsor institutions, and we cannot bring companies with no long-term returns to the market.
Unilateral efforts are destined not to last long, and the capital market will return to the essence of win-win cooperation between investors and enterprises. The market will no longer be accustomed to anyone, and those companies that only know how to ask and do not talk about returns will eventually be swept into the garbage heap of history with the autumn wind sweeping away the leaves.
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The content of this article related to listed companies is the author's personal analysis and judgment based on the information publicly disclosed by listed companies in accordance with their legal obligations (including but not limited to temporary announcements, periodic reports and official interactive platforms, etc.), and the information or opinions in this article do not constitute any investment or other business advice, and Market Value Watch does not assume any responsibility for any actions arising from the adoption of this article.
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