Collapse again! Mustard Maotai sudden drop limit star fund managers continue to significantly reduce holdings

category:Finance
 Collapse again! Mustard Maotai sudden drop limit star fund managers continue to significantly reduce holdings


There are signs that the chips of Fuling pickle organization are loose, which foreshadows the flash collapse of the company after disclosing the results of the third quarter report. Chinese correspondents of securities companies have noticed that, or because of the epidemic situation, Liu Gesong, the star fund manager, made a precise layout of Fuling mustard at a low level in the first quarter. After the stock price rose rapidly, the fund managed by Liu Gesong reduced the shares for two consecutive quarters, and faded out of the list of top ten circulating shareholders of Fuling mustard in the third quarter.

On October 23, Fuling mustard disclosed the third quarter report, the companys operating revenue from January to September was 1.798 billion yuan, a year-on-year increase of 12.09%; the net profit attributable to shareholders of listed companies was 614 million yuan, with a year-on-year increase of 18.47%.

Considering the net profit of Fuling mustard in the first half of this year was 404 million, with a year-on-year increase of 28.44%, the problem seems to come from the performance of the third quarter. In the third quarter, the company achieved a revenue of 601 million yuan, an increase of 15.88% year-on-year; the net profit attributable to shareholders of listed companies was 209 million yuan, with a year-on-year increase of 3.01%.

Obviously, the third quarter has the typical characteristics of increasing income but not increasing profit, and the growth rate of net profit has slowed down significantly.

At the same time of disclosing the performance, Fuling mustard also announced that it had received the notice from director Zhao Ping and Xiao Dabo, chairman of the board of supervisors, on the plan to reduce shares. Among them, Zhao Ping intends to reduce the holding of no more than 230000 shares, accounting for 0.0291% of the total share capital of the company; Xiao Dabo intends to reduce the holding of no more than 500000 shares, accounting for 0.0633% of the total share capital of the company.

Minsheng Securities said that in the first three quarters, the company achieved revenue of 1.798 billion yuan, a year-on-year increase of 12.09%. 20q3 revenue growth slowed down compared with 20q2 (20q2 benefited from replenishment of inventory), but it still maintained a steady growth. It is judged that on the one hand, the company reduced the volume of its main circulation products at the end of Q2, and increased the price by 10% in disguise; on the other hand, it continued to promote the channel sinking and the effect gradually appeared. The gap between profit and income in the first three quarters was large, mainly due to a year-on-year decrease of 16.93 million yuan in investment income of 20q3 (mainly due to bank financial management income) and a large increase in sales expenses.

Affected by two major factors: slowing down of performance and reduction of senior executives holdings, Fuling pickled mustard opened to a limit on October 23, with the stock price of 44.32 yuan and market value of 3.9 billion yuan reduced.

With the concept of value investment going deep into the market after 2016, Fuling mustard has attracted much attention due to its high market share in the mustard industry. Therefore, it has also become a white horse stock heavily held by fund managers. In the first quarter of 2020, Fuling mustard has become the favorite of the market.

Fuling pickled mustard has benefited from the housing economy. The first quarters foot restriction has a good impact on the companys performance. Some industry researchers told Chinas securities companies that due to the rampant epidemic situation and the ban on food, many funds have noticed that the performance of home cooked food such as Fuling pickled mustard will have a certain degree of flexibility.

Star fund manager Liu Gesong manages the Guangfa Small Cap Growth Fund, which is to buy Fuling mustard during the first quarter of 2020. As the stock price of Fuling pickle continued to rise in the first quarter and the second quarter, the funds bought earlier in the first quarter have accumulated rich profits in a few months. Therefore, this part of the funds reduction to cash in the income demand has also suddenly increased.

Take the Guangfa small cap growth fund managed by Liu Gesong as an example. By the end of June 2020, the fund held about 7 million shares of Fuling mustard, that is to say, 1.96 million shares of Fuling mustard were reduced during the second quarter. However, during the third quarter, Liu Gesong continued to significantly reduce his holdings of Fuling mustard, and his intention to optimize his position was very obvious.

Fuling mustard disclosed in the third quarter of the report information, the companys top ten circulating shareholders list has no GF fund figure. Considering that the tenth largest circulating shareholder is huitianfu balanced growth fund, it held 3.89 million shares at the end of the report period, that is to say, Guangfa Small Cap Growth Fund continued to significantly reduce Fuling pickle in the third quarter, and the reduction scale was no less than 3.11 million shares.

For example, the performance of Guizhou Maotai and dongejiao is closely related to the price increase of products. In the past decade, the retail price of Fuling pickle has risen from 50 cents to nearly 3 yuan, with the price increase rate of nearly 400%, which has exceeded the price increase of Guizhou Maotai.

For example, in November 2018, the listed company Fuling mustard announced that it had raised the prices of seven single products by about 10%. After the price increase, the terminal retail price of Wujiang mustard, the core product of the company, has gone straight to 3 yuan. Among them, the retail price of 80 grams of Wujiang fresh and crisp shredded vegetables is 2.5 yuan, and the retail price of 80 grams of Wujiang light pickled mustard is 2.7 yuan. The continued price hike has significantly supported the companys performance and has been a significant driver of the 14 fold increase in share prices over the past decade.

Although Fuling mustard was affected by the slowdown of the third quarter performance growth, it became the target of the third quarter performance market in the flash crash of Baima shares. However, considering that there is still room for continuous price increase in Fuling pickle, the performance still has certain flexibility space.

According to the report of Minsheng securities, Fuling mustard used to be mainly C-end, but now it is vigorously expanding catering and takeout channels, and is optimistic about the b-end for a long time to provide performance increment for the company. Category expansion: pickle industry is better than mustard, but limited by Huitong brand influence is small. Since 19h2, the company has promoted Wujiang main brand to replace Huitong brand. With the gradual spread of pickles in the Wujiang channel, we have been optimistic about the pickle business for a long time, continue to increase the volume and get rid of the bottleneck of growth. Minsheng securities mentioned that Fuling mustard production capacity was planned to increase in August, including 407000 tons of raw material pits, raw material processing workshops and equipment, 200000 tons of mustard production workshops and equipment and logistics and other supporting facilities, which are expected to provide strong support for channel extension and category expansion. In addition, it is planned to build Fuling pickle information system project in Wujiang River, which is conducive to comprehensively improving the production standardization and intelligent level, and at the same time, improving the marketing ability. A ton of cotton yarn has soared by more than 3000 yuan in a few days, and the price of textile raw materials has risen sharply. Tesla has recalled nearly 30000 blue model s and model xiiphone12 blue yellow cattle price roller coasters: the range of price increase is more than 1000 yuan, falling back to hundreds. Source: securities company China responsible editor: Zhong Qiming_ NF5619

According to the report of Minsheng securities, Fuling mustard used to be mainly C-end, but now it is vigorously expanding catering and takeout channels, and is optimistic about the b-end for a long time to provide performance increment for the company. Category expansion: pickle industry is better than mustard, but limited by Huitong brand influence is small. Since 19h2, the company has promoted Wujiang main brand to replace Huitong brand. With the gradual spread of pickles in the Wujiang channel, we have been optimistic about the pickle business for a long time, continue to increase the volume and get rid of the bottleneck of growth.

Minsheng securities mentioned that Fuling mustard production capacity was planned to increase in August, including 407000 tons of raw material pits, raw material processing workshops and equipment, 200000 tons of mustard production workshops and equipment and logistics and other supporting facilities, which are expected to provide strong support for channel extension and category expansion. In addition, it is planned to build Fuling pickle information system project in Wujiang River, which is conducive to comprehensively improving the production standardization and intelligent level, and at the same time, improving the marketing ability.