On September 23, Jinli Permanent Magnet shares were beaten to a stop-and-fall price as soon as they opened, breaking through the 60-day line directly, and remained firmly sealed until the closing date. This shows the firm will of the stop-and-fall closing board. The stock traded 144 million yuan a day, with a turnover rate of 1%, which was significantly reduced compared with the previous days.
This is the first word stop of Jinli Permanent Magnet in the year. Since its listing in September last year, the companys stock price has risen by nearly 15 times.
Jinli Permanent Magnets share price suddenly dropped to a halt, due to todays company has a large number of restricted shares lifted.
According to the companys announcement, on Monday, September 23, 2019, some of the original shareholders of the company lifted the ban on restricted shares, amounting to 212,903,188 shares, accounting for 51.4975% of the companys total share capital. The actual number of shares that can be listed and circulated is 182,903,188 shares, accounting for 44.2410% of the companys total share capital.
It is noteworthy that, in addition to Jinli Permanent Magnet, there are also many restricted shares today. Among them, the stock prices of most companies with original shareholdersrestricted shares dropped, but the decline was much less than that of Jinli Permanent Magnet. For example, Xinrui Technologies fell only 2.13%, Wuxi Bank and Agricultural and Shangshan Environment fell only 2.06% and 1.07% respectively, which is not much different from the overall performance of todays market. The share price of some companies with equity incentive and restricted shares lifting even rises against the trend.
Why did Jinli Permanent Magnets lifting of the ban on restricted shares cause its share price to plunge while other shares did not?
To a certain extent, this may be due to the larger scale of the companys lifting of the ban, as well as the degree of dispersion of the lifting shareholders.
On the one hand, Jinli Permanent Magnets total amount of lifting the ban is huge. The number of lifting the ban is 212,903,188 shares. The actual number of shares that can be listed and circulated this time is 182,903,188 shares. Even at todays closing price, the market value of lifting the ban still exceeds 10 billion yuan.
According to the lifting proportion, the number of Jinli permanent magnets exceeded half of the total equity, and the actual number of shares that could be listed and circulated accounted for 44.2410% of the companys total equity.
On the other hand, Jinli Permanent Magnets 82 shareholders who applied for the lifting of the limited sale of shares are very dispersed, and most of them are natural person shareholders and investment shareholders, so the cash-taking pressure is relatively high.
In addition, it is worth noting that rare earth permanent magnet is one of the hot topics in A-share market this year. It was once strongly speculated by the market. As a representative stock, Jinli permanent magnet rose 161.54% in the year, but its performance growth did not keep pace with the stock price increase in the same period, which means that there may be some overdraft in the earlier period.
Data show that Jinli Permanent Magnet realized revenue of 780 million yuan in the first half of this year, an increase of 26.69% over the same period last year, and realized net profit of 58.9026 million yuan, an increase of 12.88% over the same period last year.
It is worth noting that in such cases of Jinli Permanent Magnet, the lifting of the ban on large-scale restricted shares will generally have a certain impact on the stock price in the short term, but whether the impact will continue in the medium and long term depends on the companys performance growth. If the medium-term and long-term performance growth is good, it may greatly reduce the cushion, even without any negative impact.
Before the National Day holiday, there are 55 companies whose shares will be lifted, which will be the most concentrated on this day.
According to Wind data, before National Day this year, 57 batches of restricted shares were lifted, involving 55 listed companies. The total number of lifted shares reached 8.52 billion. According to the latest stock prices, the reference market value of lifted shares reached 74.701 billion yuan.
The proportion of lifted shares to total equity takes into account the differences between companies of different sizes, or can better measure the actual lifted scale.
Among them, 7 companies have lifted the ban more than 40%. Liande Equipment, Yuantong Express, Thai Crystal Technology, Shangwin Global and other companies have the highest lifting rate. On September 30th, Liande lifted the ban on 92.314 million shares, accounting for 64.07% of the total share capital, all of which were restricted shares of the original shareholders.