In August 12th, Reuters quoted three people familiar with the matter as saying that the BEST group is seeking to list its two stock market in Hongkong, hoping to enhance the companys valuation and establish an investor base in a closer area to mainland China. Sources said that the listing plan is mainly its express and express business, excluding Baishi supply chain, Baishi cloud and other businesses.
The above sources said that Baishis plan is still in the initial stage, and its issuance scale and target valuation have not been determined. Baishi has hired Credit Suisse and J.P. Morgan to lead the listing process. The earliest listing is likely to take place this year. The listing plan has been approved by Alibaba group, the major shareholder of Baishi group, and is considering investing in this listing.
In response to this news, Baishi group said in response to the interface news that it would not comment.
Founded in 2007, Baishi group is a logistics and supply chain service platform integrating express delivery, express, supply chain management, terminal services, capacity matching, international e-commerce logistics, logistics finance and other business sectors. On September 20, 2017, Baishi group was listed on the New York Stock Exchange.
However, after the listing, the performance of Baishi group is still in the loss, and the stock price performance is not satisfactory. As of yesterdays U.S. stock market closing, Baishi groups share price was 457 million US dollars, with a market value of 1.785 billion US dollars, about 12.4 billion yuan.
This market value is not only far lower than China express, which is also listed in the US stock market, but also ranked the bottom of all listed express companies, only slightly higher than the market value of 12.163 billion yuan of debond express.
Prior to this, it has been reported that Baishi group will spin off the business of listed companies this year, including stripping new businesses such as Baishi Dianjia, which is a drag on the groups performance.
Founder Securities said in a research report published in March that the current market value of Baishi not only fails to reflect the value of Baishi express and the marginal improvement of single ticket cost, but also completely ignores the value of business such as Baishi express. Overall, Baishi group has been greatly underestimated.
From the perspective of the proportion of revenue business, the express delivery and express business, which is reported to be listed in Hong Kong, is the main revenue of Baishi group. According to its corporate financial report, in 2019, Baishi groups express business revenue was 21.81 billion yuan, and the express business revenue was 5.22 billion yuan, accounting for 77% of the companys total revenue.
Affected by the Xinguan epidemic, Baishi groups revenue decreased and its loss expanded in the first quarter of this year. In the first quarter of 2020, the operating revenue of Baishi was 5.465 billion yuan, a year-on-year decrease of 20.5%; the gross profit was RMB 177 million yuan, which was 290 million yuan in the same period of last year; the net loss under non GAAP was 712 million yuan, which was 210 million yuan in the same period of last year; the adjusted EBITDA (profit before tax, interest, depreciation and amortization) was negative 580 million yuan, which was negative 80 million yuan in the same period last year.
Baishi is not the first express company to be sent to Hong Kong for secondary listing. On June 23, China express, another express company listed in the United States, was reported by foreign media that it was negotiating with investment banks to discuss the issue of listing in Hong Kong as early as the end of this year. According to the news, the potential fund-raising amount for the listing is between us $1 billion and US $2 billion. As for the secondary listing in Hong Kong, relevant person in charge of China Express also told interface news that he did not comment on this.
With the increasingly stringent regulation on Chinas stock market in the United States, more and more China General stocks are returning to Hong Kong stocks or a shares, and express companies may join this trend.
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