Source: Times Business School
Author|Lu Shuoyi
Editor|Li Qiantao
On April 18, Tiancheng Technology (688603. SH) released its first annual report and first quarter performance forecast since its listing, and its stock price fluctuated throughout the day, closing at 42.38 yuan per share, up 0.98%, and 22.95% higher than the issue price on the first day of listing (before the resumption).
Interestingly, just the day before, the stock price of Tiancheng Technology seemed to be rushing.
On April 17, Tiancheng Technology's share price opened high and went high, and the end of the session rose sharply, closing up 12.58% to close at 41.97 yuan per share, ending the five-day losing streak. In just five trading days, Tiancheng Technology's share price fell 17.87%.
According to the latest performance forecast, in the first quarter of 2024, Tiancheng Technology announced that the revenue and net profit attributable to the parent company will increase both, especially the net profit attributable to the parent company will soar by more than 50% year-on-year.
Although Tiancheng Technology's performance is promising, its stock price is still in a state of breakage.
On July 10, 2023, Tiancheng Technology successfully landed on the Science and Technology Innovation Board under the sponsorship of Minsheng Securities. According to the prospectus, from 2020 to 2022, Tiancheng Technology's revenue will be 257 million yuan, 375 million yuan, and 374 million yuan respectively, and its net profit will be 38.7801 million yuan, 44.9807 million yuan, and 54.6159 million yuan respectively. In the same period, the year-on-year growth rate of revenue was 52.98%, 45.91% and -0.28%, and the year-on-year growth rate of net profit was 68.72%, 15.99% and 21.42% respectively.
It is worth noting that the initial price of Tiancheng Technology is 55 yuan / share, and the corresponding price-earnings ratio is 59.61 times, which is higher than the average price-earnings ratio of its peers (35.04 times) in the same period, and the valuation is high. As a result, Tiancheng Technology planned to raise 401 million yuan in the first offering, but it actually raised 707 million yuan, overraising 306 million yuan.
Now, judging from the latest performance announcement of Tiancheng Technology, the high valuation at that time seems to be too optimistic.
In the first year after listing, Tiancheng Technology's performance was unremarkable. According to the annual report, in 2023, Tiancheng Technology's revenue will be 339 million yuan, a year-on-year decrease of 9.47%, and its net profit will be 58.5723 million yuan, an increase of only 7.25% year-on-year.
Wind data shows that in each quarter of 2023, the year-on-year growth rate of Tiancheng Technology's revenue will be -15.07%, -14.09%, -5.32% and -2.48% respectively, and the year-on-year growth rate of net profit will be -9.03%, 4.99%, -4.43% and 43.23% respectively. Although the year-on-year decline in revenue in the fourth quarter has narrowed, it has not yet returned to the track of positive growth, and the growth rate of net profit has not been stable.
At present, Tiancheng Technology is still in a state of breakage, which just confirms the dialectical relationship between stock price, valuation and performance.
In the future, whether Tiancheng Technology can lift the broken state, the key depends on the performance.
According to the latest announcement, Tiancheng Technology's performance in the first quarter of 2024 is gratifying. In the first quarter of 2024, Tiancheng Technology is expected to achieve revenue of 80.1 million yuan, a year-on-year increase of about 6.18%, net profit attributable to the parent company is expected to be 17.5 million yuan, a year-on-year increase of about 53.83%, and non-net profit is expected to be 15 million yuan, a year-on-year increase of about 30.21%.
For the changes in its own performance, Tiancheng Technology also explained.
Regarding the decline in revenue in 2023, Tiancheng Technology said in its annual report that the sales settlement price of the company's main product level copper special chemicals fluctuates with the purchase price of main raw materials, and the average purchase price of the company's main raw materials has decreased significantly compared with the same period last year, and the sales price of products has declined, resulting in a decline in the company's revenue.
Tiancheng Technology said in the performance forecast that the net profit attributable to the parent company and the non-net profit deducted in the first quarter increased significantly, mainly due to the company's use of its own advantages to continuously develop new customers, the continuous adjustment of the main product structure, and the use of idle funds to purchase financial products and other factors.
(Full text: 967 characters)