Low price is hard to resist the impulse to reduce holdings

category:Finance
 Low price is hard to resist the impulse to reduce holdings


Every business bulls eye noted that July 22 is the first anniversary of the opening of the science and technology innovation board. At the same time, it also ushered in a tide of more than 180 billion yuan. Relevant stocks may face greater adjustment pressure.

Yesterday, the overall market declined significantly. Tianyi Shangjia (688033, SH), an individual stock of science and technology innovation board, also went down with the trend, opening low and going low, closing down 3.61% to 21.90 yuan / share, and the total market value shrank to 9.827 billion yuan.

Although the decline of Tianyi Shangjia yesterday was less than that of the Shanghai stock index, 14000 shareholders were not happy at all: since the intraday record of 30.18 yuan / share in four months on July 15, Tianyi Shangjia has started the trend of even negative - from July 16 to yesterday, the daily K line chart has closed seven negative lines, including two long Yin lines on July 16 and July 22, with a decline of about 8%.

Based on the intraday high on July 15, Tianyi Shangjias biggest decline reached 28% in seven trading days. During this period, the market at least also appeared a wave of rebound, the overall decline is not big, Tianyi Shangjia is far behind the market.

In this way, the trend of next weeks good day is particularly important: first, if next Monday and next Tuesday fall two days, it will be practiced as the legendary the nine Yin manual; two, if next week can not rebound effectively, the break will probably become a reality. This is something that listed companies and shareholders do not want to see.

Daily K-line chart since the listing of Tianyi Shangjia

According to the prospectus of Tianyi Shangjia, the company is a leading supplier of powder metallurgy brake pads for high-speed rail multiple units in China. During the reporting period, the company was mainly engaged in the R & D, production and sales of powder metallurgy brake pads for high-speed rail multiple units and brake pads and brake shoes for locomotives and urban rail vehicles.

Tianyi Shangjia was listed and traded on July 22, 2019. It is one of the first 25 enterprises to be listed on the science and technology innovation board. The first anniversary of the opening of the science and technology innovation board is also the first anniversary of the listing of Tianyi Shangjia. On July 14, 2020, Tianyi Shangjia also issued the public notice on the listing and circulation of some restricted shares.

Tianyi Shangjias performance on July 22 this year was obviously unsatisfactory, with a sharp drop of 7.91% on the same day, and the trading volume was also greatly enlarged to 156000 hands, setting a new high of nearly one year since August 7, 2019.

The 11th trading day after listing is the highlight time of Tianyi: on August 6, 2019, the highest intraday stock price reached 64.71 yuan / share, 218% higher than the issuance price, and the total market value also reached 29 billion yuan. However, since then, Tianyi Shangjia has started a rapid decline for four months, taking all the gains since its listing and falling to the position of 23 yuan / share in early December last year, which is not far away from breaking. At the end of last year and the beginning of this year, although there was a shock rebound, it was still unable to rise. On April 28, it set the lowest since listing of 21.54 yuan / share.

Low price cant stop large shareholders clearance type reduction

As the saying goes, there is no double blessing, but misfortune never comes singly. Just when Tianyi Shangjia shareholders were worried about breaking, another bad news came.

Photo source: Tianyi Shangjia announcement

After seven consecutive negative share prices, yesterday evening, Tianyi Shangjia announced the plan to reduce shares held by shareholders holding more than 5%. According to the announcement, Ruize fund, a shareholder, plans to reduce the total number of shares held by the company through centralized bidding and block trading, with a total reduction ratio of no more than 5.87% of the total share capital. The reduction price is determined by the market price and is not lower than the issuance price of the companys IPO shares. Another shareholder, Beigong investment, plans to reduce the total number of shares of the company through centralized bidding and block trading. The total number of shares to be reduced is not more than 24383035 shares, and the total reduction proportion is not more than 5.43% of the total share capital. The reduction price is determined by the market price.

The sources of the shares to be reduced by the two shareholders are shares acquired before IPO, and the reasons for the reduction are due to their own capital needs.

Every bulls eye noted that if calculated according to yesterdays closing price of 21.90 yuan / share, the reduction amount of the two major shareholders would reach 577 million yuan and 534 million yuan respectively, with a total of 1.111 billion yuan. That is to say, when Tianyi Shangjias share price is on the verge of breaking, the impulse of the two major shareholders to reduce their holdings is still difficult to restrain.

Image source: wind data

According to wind data, the first quarter report of 2020 shows that Ruize fund and Beigong investment are respectively the second and third largest shareholders of Tianyi Shangjia. The current shareholding ratio is exactly the same as the announced reduction proportion, which can be said to be a clearance type reduction.

Three reasons led to a year-on-year decline in the first quarter

Wind data shows that Tianyi Shangjia achieved good results in 2017, 2018 and 2019, with year-on-year increases of 14.08%, 18.56% and 2.89% respectively. However, in the first quarter of this year, there was a significant year-on-year decline in the net profit attributable to the parent company of 74.58%.

On July 11, 2020, Tianyi Shangjia released the semi annual performance forecast of 2020, saying that the net profit attributable to the parent and the non net profit deducted from the parent company are expected to decline by more than 70% year on year.

In this regard, the company explained that there were three reasons: first, affected by the epidemic situation, the railway passenger service was greatly impacted, and the companys main business income decreased by 55.25% year-on-year in the first half of the year; second, a total of 4.9828 million yuan of masks and cash were donated, resulting in non recurring profit and loss; third, the profit and loss caused by the merger of the two subsidiaries was about - 5 million yuan, as well as the increase in depreciation of fixed assets The profit and loss is about - 5 million yuan.

More than 10 listed companies on the science and technology innovation board reduced their holdings

It is not just Tianyi Shangjia that will reduce their holdings in large scale as soon as the lifting period of the ban comes.

July 22 marks the first anniversary of the opening of the science and technology innovation board. Just a day later, a number of science and Technology Innovation Board companies issued shareholder reduction announcements. According to the securities times, on the evening of the 23rd, nine companies, including Zhongwei company, Western superconductor, Hanchuan intelligent and walde, announced plans to reduce their shareholdings. According to preliminary statistics, based on the closing price of the same day, the market value of shareholders of these companies reduced by about 6.3 billion yuan, of which the shareholders of Western superconductor are prepared to reduce 14% of their shares, with a cash cover of about 2.1 billion yuan.

Among them, the taste fresh inquiry transfer system of the medium and micro companies, and the reduction of the remaining 8 companies are conducted through centralized bidding and block trading. Wang Jiyue, a senior investment banker, said the emergence of the first inquiry transfer is of historical significance. The implementation rules for the reduction of shares held by shareholders of listed companies on the science and technology innovation board through inquiry transfer and allotment to specific institutional investors is a pilot project to solve the reduction of restricted shares in a market-oriented way. The system innovation needs to be tested by the market. If the follow-up operation is stable, the value of the mechanism is comparable to the secondary share trading reform.

On the evening of July 24, the second batch of Kechuang board companies reduced their holdings one after another. Aerospace Hongtu and Tianyi Shangjia announced the reduction of shares, with the former holding no more than 5.43% and the latter no more than 11.3%. According to the closing price on July 24, the reduction amounts were 415 million yuan and 1111 million yuan respectively.

From the perspective of the scale of single companys lifting the ban, 20 companies with a market value of more than 1 billion yuan, and the market value of medium and micro companies, LanChi technology, hongruan technology and RuiChuang micro nano are as high as 10 billion yuan. The total market value of these four companies accounted for more than 50% of the total market value.

The medium and micro companies have the largest market value among these companies, with 194 million shares lifted on July 22. Based on the closing price of 205.23 yuan on July 23, the market value of lifting the ban reached 39.8 billion yuan, and the total market value of the company was 109.7 billion yuan.

In addition to the huge scale of market value, the rapid growth of circulating share capital is also an important factor.

According to wind data, 10 of the above-mentioned 25 Sci-tech Innovation Board companies currently have less than 15% of the total share capital of the company. Walder, the highest, accounts for only 24.49%, and LanChi technology, which accounts for the lowest proportion, is only 7%. After the lifting of the ban on July 22, the proportion of the circulating capital stock of 14 companies in the total share capital of the company will rise to more than 50%, and that of the Western superconductor and Jiayuan technology will exceed 70%. On that day, 15 companies will be lifted with more than 30% of the total shares.

Some organizations in the industry are optimistic

In the face of the centralized lifting of the ban on the science and technology innovation board, some investors are worried whether the reduction of the shares of relevant shareholders will bring blood loss effect to the market, thus causing the share prices of related companies to fall?

According to the Xinhua news agency, some professional institutions are optimistic, believing that the lifting of the ban will expand the circulation of high-quality science and Technology Innovation Board companies, and attract some long-term institutional investors to buy or increase their positions.

Wang Zhizhi stressed that the science and technology innovation board represents the direction of Chinas economic transformation and upgrading. There are many benchmark enterprises in the fields of semiconductors and biotechnology in the science and technology innovation board, which can not be found in other sectors. After the lifting of the ban on these high-quality enterprises on the science and technology innovation board, the companys circulation will expand. If the stock price falls back at this time, it will attract long-term institutional funds to further buy and increase positions.

In addition, in the middle of June, the Shanghai Stock Exchange announced that it would release the historical market of the 50 component index of the Shanghai Stock Exchange science and technology innovation board after the closing on July 22, and officially released the real-time market on July 23. Institutions generally believe that with the release of the 50 index of the science and technology innovation board, the scientific and technological innovation board is expected to usher in the centralized allocation of passive funds. Zhang Yulong, chief strategic analyst of China Securities construction investment, said that the release of Shanghai Securities science and technology innovation board 50 component index will provide investment target and performance benchmark for the market. With the launch of the Kechuang 50 index, it is expected that fund products tracking the index will be issued in succession, bringing new incremental funds to the science and technology innovation board. (part of the content of this article is synthesized from daily economic news, Xinhua news agency, securities times, etc.) (this article is for reference only and does not constitute the basis for trading. The risk of entering the market shall be borne by yourself.) Source: Yang Zeyu, editor in charge of daily economic news_ NF6036

In addition, in the middle of June, the Shanghai Stock Exchange announced that it would release the historical market of the 50 component index of the Shanghai Stock Exchange science and technology innovation board after the closing on July 22, and officially released the real-time market on July 23. Institutions generally believe that with the release of the 50 index of the science and technology innovation board, the scientific and technological innovation board is expected to usher in the centralized allocation of passive funds.

Zhang Yulong, chief strategic analyst of China Securities construction investment, said that the release of Shanghai Securities science and technology innovation board 50 component index will provide investment target and performance benchmark for the market. With the launch of the Kechuang 50 index, it is expected that fund products tracking the index will be issued in succession, bringing new incremental funds to the science and technology innovation board.

(part of the content of this article is synthesized from daily economic news, Xinhua news agency, securities times, etc.)