What lessons does the research paper face the pledge of equity and trample on LETV bring to securities companies?

category:Finance
 What lessons does the research paper face the pledge of equity and trample on LETV bring to securities companies?


According to incomplete statistics, at least five listed securities companies have disclosed Da Lei that stepped on LETVs equity pledge after the LETV crisis broke out in 2016.

According to the 2017 financial statements of Western securities, in April 2016, Jia Yueting successively pledged 21.5 million LETV shares to him, with a capital of 500 million yuan. As of December 31, 2017, the capital principal of pledge stock LETV of Western securities was RMB 1.0185 billion. Later, due to Jia Yuetings failure to pay interest and money as agreed, he was sued by Western securities to Shaanxi high court in July 2017.

In February 2018, Western securities announced that it would withdraw 439 million yuan of provision for impairment of capital assets from LETV, including 241 million yuan for Jia Yueting, which is more than 30% of the companys 2017 audited net profit attributable to the parent. Moreover, affected by the transaction, on June 1, 2018, Shaanxi Securities Regulatory Bureau issued a notice that due to the careless setting of risk control indicators of Western securities in the stock pledged repo business, the stock pledged repo business will be suspended for six months.

Three months later, in April 2018, according to the ruling published by the official document website, Jia Yueting signed three agreements on pledge style share repurchase of Changjiang Securities Co., Ltd. (tripartite agreement) with Changjiang Securities Asset Management Company and Changjiang Securities between 2016 and 2017, with a total amount of 1.017 billion yuan. In the three lawsuits filed by Changjiang Securities against Jia Yueting, the capital and interest returned by Changjiang asset management required Jia Yueting totaled 1.102 billion yuan.

Founder Securities in trouble also failed to escape from LETVs leikeng. According to the execution ruling issued in January 2019, as of February 2018, 12.324 million LETV shares pledged by Yang Lijie (former CFO of LETV) and LETV holdings to Founder Securities, the executor of the application, have all been sold, with a transaction amount of 59.3745 million yuan. According to the calculation of 80 million yuan of financing principal, there are still more than 20 million yuan of Founder Securities not recovered.

More than 50 research papers of securities companies face up

In addition to the most intuitive economic loss, the research report issued by the research institute to LETV also let the securities companies fight in the face. Some analysts once set the target price of LETV at 195.80 yuan / share.

According to incomplete statistics of wind data, since LETVs online market in 2010, the first research report on LETVs rating was on September 28 of that year, and the last was on June 7, 2017. During this period, in addition to the unpublished research reports, a total of 52 institutions at home and abroad released 425 research reports on LETV.

Ratings include neutral, overweight, outperforming the big market, recommendation, prudent recommendation, push, strong recommendation, buy, prudent recommendation, prudent overweight, hold, wait-and-see, sell, etc.

Among them, 151 research papers rated LETV as buy, and CITIC Securities, Huatai Securities, Orient Securities, Founder Securities, national securities, Gaohua securities, Debang securities, Bohai Securities, CAITONG securities, Xiangcai securities and Guohai Securities all recommended by the research papers.

According to 108 research papers, LETV is rated as recommended. Research institutions include Great Wall Securities, nisin securities, Galaxy Securities, Huachuang securities, Guolian securities, Changjiang Securities, Dongxing securities, Founder Securities, Pingan securities, Bohai Securities, Guodu securities, Aijian securities, etc.

27 research reports are strongly recommended and strongly promoted, respectively from Minsheng securities, Ping An Securities and Huachuang securities, with the date concentrated before the end of 2012.

In the research report giving the target price, since March 2015, many securities companies have set the target price to more than 100 yuan / share. On May 12 of that year, Meng Wei, an analyst of Oriental securities at that time, raised the target price of LETV to 195.80 yuan / share, the highest one in the existing data.

Meng Wei said in the research paper that he continues to be optimistic about LETVs leading innovation in the intelligent terminal industry, with a prospective layout for the trillion level market, and is expected to rise as a new giant in the era of intelligent IOT. Looking forward to the continuous positive in the whole year, LETVs timely injection of listed companies is expected to constitute the most important catalyst in the second half of the year. It is predicted that the EPS of the company in 2015-2017 will be RMB 0.57, RMB 0.90 and RMB 1.72 respectively. With reference to the 229 times valuation of comparable companies in 2015 and a 50% premium, the target price was increased to 195.80 yuan / share. The highest closing price of ziletv from listing to delisting is 179.03 yuan / share.

In 425 research papers, Wang Chaoxing, the only one who put forward a wait-and-see attitude, was the communication and communication equipment analyst of Huatai Securities at that time. On June 4, 2012, he said in the research paper that LETV P2P video acceleration client has gradually become the necessary video acceleration and playback tool software for the majority of Internet users. The company adopts the innovative business model of payment plus free, adheres to the three-dimensional integrated business philosophy of legal copyright operation + paid user cultivation + platform value-added service, and takes the lead in making profits in the industry and keeps high growth. But at present, the valuation of the companys stock price is on the high side, and the company is given a wait-and-see rating.

Liao xufa, an analyst with Gaohua securities, was the only one to give a sell rating. He pointed out in his research report on June 7, 2012 that in 2011, the copyright distribution business of LETV increased by 572% year on year, mainly benefiting from the soaring price of new media copyright. Since the beginning of the year, Youku has merged with Tudou, and iqiyi, Tencent and Sohu Video have formed a purchasing alliance, increasing pressure on new media prices. The growth rate of LETVs copyright distribution business is sluggish; in January, LETV launched super clear set-top box, but its sales may be lower than expected; the companys current price earnings ratio in 2012 is 45 times, while the industry average is about 28 times. Maintain the forecast of 2012-14 EPS of 0.98 yuan, 1.31 yuan and 1.69 yuan (up 65%, 31% and 29% respectively on a year-on-year basis). Maintain the 12-month target price of 31.98 yuan based on PEG (corresponding to the price earnings ratio of 33 times in 2012). Downgrade investment rating from neutral to sell. It is worth noting that before October 2013, Liao xufas rating for LETV was neutral except for one sell, and the target price shown was often lower than that of other analysts in the same period. After October 2013, Liao xufas rating for LETV was buy. New Beijing News reporter Zhang Siyuan editor Yue Cai Zhou Xiao to Xue Jingning source: new Beijing News Editor in charge: Yang Bin_ NF4368

Liao xufa, an analyst with Gaohua securities, was the only one to give a sell rating. He pointed out in his research report on June 7, 2012 that in 2011, the copyright distribution business of LETV increased by 572% year on year, mainly benefiting from the soaring price of new media copyright. Since the beginning of the year, Youku has merged with Tudou, and iqiyi, Tencent and Sohu Video have formed a purchasing alliance, increasing pressure on new media prices. The growth rate of LETVs copyright distribution business is sluggish; in January, LETV launched super clear set-top box, but its sales may be lower than expected; the companys current price earnings ratio in 2012 is 45 times, while the industry average is about 28 times. Maintain the forecast of 2012-14 EPS of 0.98 yuan, 1.31 yuan and 1.69 yuan (up 65%, 31% and 29% respectively on a year-on-year basis). Maintain the 12-month target price of 31.98 yuan based on PEG (corresponding to the price earnings ratio of 33 times in 2012). Downgrade investment rating from neutral to sell.

It is worth noting that before October 2013, Liao xufas rating for LETV was neutral except for one sell, and the target price shown was often lower than that of other analysts in the same period. After October 2013, Liao xufas rating for LETV was buy.