CITIC Securities threw 5 thunders at A-shares, one louder than the other

Lao Cai Ji Guan City

2024-04-17 09:39Published in Beijing

Ancient and modern, Chinese and foreign, but wherever there is an exchange, listed companies are regarded as the cornerstone of the market. The quality of listed companies is not only related to the listed companies themselves, but also to the rise and fall of the exchange.

Therefore, the quality of IPO companies is the key to the development and prosperity of the market. As the so-called honor and disgrace are related, the responsibility is heavy.

In the author's opinion, although there are many responsible entities, such as regulators, professional institutions, the market and the media, etc., the context is clear and unquestionable. Among them, securities companies are a key gatekeeper.

Therefore, securities companies, as the first pass, must have the courage and responsibility to be a husband. Because, if a fake and shoddy listed company is put in, thousands of investors will be harmed.

In recent years, the performance of the A-share market has been unsatisfactory, and the main reason why small and medium-sized investors die as soon as they buy a set of drugs is that the quality of many listed companies is worrying and they often explode.

Among them, after the high-priced listed companies enter the A-share market, every company is a thunderbolt. High-priced issuance - a huge amount of money - falling below the issue price to trap investors - the company is lying flat, executives cashing out the stock price further falls, such a vicious circle, once investors buy, it is difficult to escape.

And look at the 5 thunders thrown out by CITIC Securities, it can be said that one is louder than the other, and hundreds of thousands of investors are dizzy, and it is unpredictable when they will be able to untie the set.

1. Huaru Technology (301302)

Huaru Technology issued an issue price of 52 yuan, raised 1.37 billion yuan, and was listed on June 23, 2022. During the period, the highest price was 88 yuan, and now the price is about 22 yuan after resumption, which is 136% away from the issue price.

In 2022, the year of listing, the operating income and net profit reached 830 million yuan and 134 million yuan respectively, a year-on-year increase of 21% and 13%. But as soon as it entered 2023, Lei's true colors were revealed - in the first three quarters, revenue and net profit declined step by step in each quarter, and the company announced that it expects a loss of 230 million yuan to 180 million yuan for the whole year of 2023.

There was no loss in the first ten years, and even the revenue and profits have been growing, just after the listing, it is undisguised, and the loss will be lost. Where does this go-it-yourself attitude and approach put the face of the management and many investors?

Financial data show that the performance of Huashi Technology before its listing has grown, and the profit is positive, but in fact, most of the cash flow is negative, and the company's income is only a large number of accounts receivable with rich books. Can't the brokerage see the cat?

Shortly after the listing, one of the actual controllers of the company was retained by the relevant departments and was suspected of violating the law and committing crimes. There is another "thunder to make matters worse", how can investors be embarrassed.

2. Weizhi (688211)

The issue price of Zhongke Weizhi is 92.2 yuan, raising 2.977 billion yuan, and it will be listed on October 26, 2021, with the highest price of 90 yuan after listing, and the latest share price is about 35 yuan. It is still 160% away from the issue price.

The opening price of Zhongke Weizhi on the same day was 90 yuan, which was below the issue price, and the closing price of the day was 78 yuan, which was nearly 30% lower than the issue price. Since then, Zhongke Weizhi has never exceeded 90 yuan until recently.

Like Huaru Technology, Zhongke Weizhi also began to change its face in the second year of listing. Listed in October 2021, the growth rate of net profit and operating income reached 21% and 83% respectively that year, blinding investors.

But bad luck followed. At the beginning of 2022, the net profit has declined vertically for three consecutive quarters, and by the end of 2022, although the revenue is the same as in 2021, the net profit has decreased by 145% year-on-year, and the loss after deducting non-profits is 190 million yuan, indicating that the previous profits are basically all water, and they are squeezed out regardless of their face after listing.

Zhongke Weizhi predicts that in 2023, it is expected that the non-net profit will lose about 56 million yuan to 39 million yuan, which is still squeezing water.

3. Dia shares (301177)

Dia shares were listed at the end of 2021 at an issue price of 116.88 yuan, raising a total of 4.676 billion yuan. Is a jewelry processing enterprise still short of money? But it still gave the green light all the way, entered the house, and took away more than 4 billion yuan of precious funds.

Different from Zhongke Weizhi, on the day of the listing of Dia shares, it opened at 162 yuan, the highest rushed to 180 yuan, and finally closed at 165 yuan, about 30% higher than the issue price.

As it turned out, the opening of the first day was only a glimpse of the stock market left by Dia shares. From the second trading day, Dia shares began to fall until 24 trading days later, falling below the issue price. Since then, for more than a year, Dia shares have never even looked back at the issue price at that time, until recently it fell to about 22 yuan, which is more than 400% away from the issue price of 94 yuan.

Dia shares are also the role of maintaining a highlight in the year of listing, and can't wait to change their faces in the second year. In 2021, the year of listing, Dia's operating income and non-net profit reached 4.6 billion yuan and 1.249 billion yuan respectively. However, from the second quarter of 2022 to the present, its operating income and net profit have experienced negative growth for 6 consecutive quarters.

Among them, at the end of 2022, operating income and net profit decreased by 20.36% and 43.98% respectively, operating income fell to 3.68 billion yuan, and non-net profit decreased to 612 million yuan.

Stepping into 2023, Dia shares are even more plummeting. For three consecutive quarters, the operating income fell by 40%, and the net profit fell at a rate of more than 70%, and finally showed its hideous face in the third quarter: a loss of 67.54 million yuan.

The company predicts that the non-net profit deducted in 2023 will be a loss of 129 million yuan to 98.3 million yuan. It seems that investors can only be far away if they want to untie the hedge.

4. Haichuang Pharmaceutical-U(688302)

Haichuang Pharmaceutical is a listed company on the Science and Technology Innovation Board, and its listing follows the listing rules of the Science and Technology Innovation Board, although it is not profitable, it can also be listed. The company was listed on April 12, 2022, with an issue price of 42.92 yuan and a total of 1.063 billion yuan raised.

On the first day of listing, Haichuang Pharmaceutical opened at 41 yuan, lower than the issue price, and closed at 30.1 yuan, down more than 29%.

Different from the above four thunders, although the closing price of Haichuang Pharmaceutical on the day of listing was much lower than the issue price, after the listing, driven by funds, it walked out of a wave of rising market, and the stock price reached a maximum of more than 78 yuan.

However, starting from March 2023, Haichuang Pharmaceutical's share price has immediately walked out of the year-long bear market, and the latest closing price is about 24 yuan, which is more than 75% away from the issue price of 18 yuan.

The strange thing about Haichuang Pharmaceutical is that this company has no revenue. The author believes that a loss-making company can be listed, but a company without income can never be listed, because no income means that the company has no products, and what if the company's products are not recognized by the market or allowed by the regulatory authorities after listing?

In the past 5 years, Haichuang Pharmaceutical's revenue in 2018 is zero, in 2019 it is zero, in 2020 it will be zero, in 2021 it will have zero revenue, in 2022 it will have a revenue of 1.65 million yuan from the sale of pharmaceutical intermediates, and it will continue to have zero revenue in 2023.

In the past 6 years, the 181 employees of Haichuang Pharmaceutical have lost a total of about 1.3 billion yuan, and the net amount of funds raised by the company is only 995 million yuan. This means that on the first anniversary of its listing, Haichuang Pharmaceutical has lost all the funds raised. How will you live in the future?

5. Yahong Pharmaceutical-U(688176)

Yahong Pharmaceutical's listing path is the same as that of Haichuang Pharmaceutical. The company was listed on January 7, 2022 with an issue price of 22.98 yuan and a total of 2.528 billion yuan raised.

On the first day, the company opened below the issue price, and the opening price was 20 yuan. The opening price was the highest price, and the closing price was 17.6 yuan, down 23.6% from the issue price.

For more than a year, the issuance price of Yahong Pharmaceutical was like a star in the night sky, out of reach. Recently, the closing price of Yahong Pharmaceutical is about 5.4 yuan. The gap between this price and the issue price is 17.58 yuan, and it needs to rise 3.25 times to exceed.

Similar to Haichuang Pharmaceutical, Yahong Pharmaceutical has no income from 2018 to 2020, with an income of 4,574 yuan in 2021 (note, there are no 10,000 words), an income of 26,100 yuan in 2022, and an income of 2.99 million yuan in the third quarter of 2023.

From 2018 to 2023, Yahong Pharmaceutical, which has 260 employees, has a total loss of 1.2 billion yuan, losing more than half of the raised funds.

These 5 mines were thrown at A-shares, and it is unknown when they can be safely eliminated. However, the issuance costs of the five companies totaling 772 million yuan have really gone into the pockets of intermediaries represented by CITIC Securities. It is only the investors in the secondary market who are suffering, which affects the confidence of small and medium-sized investors in the market, and damages the overall credit of the securities market, which has nothing to do with intermediaries.

Finally, in view of the current floating market, on the issue of IPO, the author wept blood and suggested:

1. Pushing companies with obvious financial defects to the A-share market, and doing so in batches, is based on their own arrogance and contempt for relevant parties, which must be curbed and heavily punished;

2. IPO accountability should be investigated. No matter how many years, the intermediary agency must be held accountable, and the party and the sponsor should be severely punished;

3. Investors are allowed to claim compensation if the stock price falls below the issue price after listing or after the financial fraud is exposed, resulting in a substantial drop in the stock price;

4. Companies that have product sales and lose money can be allowed to go public, but companies without products should be put off listing. Some companies with dozens of people or one or two hundred people, after spending billions of raised funds, may not be able to develop products for the market, and then delist and sell shells, and have made a lot of money;

5. When the company IPO, the underwriter and the sponsor should be forced to follow the investment, and the price of the follow-up investment should refer to the issue price, and a lock-up period should be attached;

6. For loss-making companies, they can first issue shares to institutional investors, and then issue shares to ordinary investors for the second time after the company has profitability or the basis for continuous operation.

What the current securities market lacks is confidence, what is needed is joint efforts, and what is more of a black sheep is the black sheep, and what is rampant is profit-seeking and fraud; once these problems are solved in a systematic manner, the capital market is bound to usher in the spring of a long bull.

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