HYGIEIA GROUP and HYGIEIA Medical were established 18 years apart, are engaged in different industries, and are not even in the same country. Due to the similar pronunciation of the stock abbreviations, there is an "intersection".

HYGIEIA GROUP and Hygeia Healthcare are two companies that were established 18 years apart, are engaged in different industries, and are not even in the same country. Due to the similar pronunciation of the stock abbreviations, there is an "intersection".

HYGIEIA's "new" data exploded, just because it "hit the face" of HYGIEIA Medical?

Zhitong Finance APP noticed that HYGIEIA GROUP (01650), which passed the hearing of the Hong Kong Stock Exchange on June 9, announced on June 12 that the The company will conduct an IPO from June 12, 2020 to June 19, 2020. The company plans to issue 500 million shares, of which 10% will be public offering, 90% will be placed, and a 15% over-allotment option will be granted; The offer price is no higher than HK$0.30 per offer share and is expected to be no less than HK$0.25 per offer share, with each lot of 8,000 shares. The shares are expected to start trading on the main board at 9:00 a.m. on July 3, 2020.

If we only judge from the amount raised and the share price per share, it is difficult for HYGIEIA to become a popular target for investors to "make new investments". But the reality doesn't seem to be going in the expected direction. According to

brokerage data, as of 9:40 a.m. on June 12, HYGIEIA’s financing funds reached HK$280 million, and the oversubscription multiple is estimated to reach 47.86 times.

Zhitong Finance APP learned that HYGIEIA was established in 1991. The company is a well-known general cleaning service provider in the environmental service industry. It is headquartered in Singapore and mainly conducts business in Singapore and Thailand.

According to the Frost & Sullivan Report, HYGIEIA had a market share of 3.7% in terms of revenue in 2019, ranking second among cleaning service providers in Singapore. In each of the three years ended December 31, 2019, the company generated revenue of approximately S$56.33 million, S$72.44 million and S$76.37 million respectively, and profits during the year were S$2.654 million, S$6.564 million and S$5.174 million respectively. Thousands of Singapore dollars.

Judging from the two dimensions of investment theme and performance growth, it is difficult for HYGIEIA to meet the standard of "new" hot stocks in the traditional sense.

According to the judgment of Zhitong Finance APP, the reason why HYGIEIA has become a "new hot spot" may be that investors mistook it for HYGIEIA Medical Holdings Co., Ltd. (hereinafter referred to as "HYGIEIA"), which was heard by the Hong Kong Stock Exchange on June 8. Hygeia Medical"). The reason is that the pronunciation of HYGIEIA is quite similar to "HYGIEIA".

According to the prospectus of Hygeia Medical, the company was founded in 2009. It is a Sino-US joint venture and professional medical investment group, focusing on the investment, construction and operation management of chain tumor treatment and brain medical institutions. According to Frost & Sullivan, based on the revenue generated from radiotherapy -related services in 2019 and the number of radiotherapy equipment installed by its hospitals and partners’ radiotherapy centers as of December 31, 2019, Hygeia Medical is China's largest oncology medical group.

As of the Latest Practicable Date, Hygeia Medical operates or manages ten oncology-focused hospital networks across seven cities in six provinces in China, through direct equity ownership or management rights. In addition, Hygeia Medical currently provides services for its radiotherapy centers to 15 hospital partners (including Higeia Medical's managed hospitals) located in nine provinces in China.

In terms of performance, Hygeia Medical's revenue increased from RMB 596 million in 2017 to RMB 1.086 billion in 2019, with a compound annual growth rate of 34.9%. The company's adjusted net profit increased from RMB 48.539 million in 2017 to RMB 172 million in 2019, with a compound annual growth rate of 88.0%.

From the aspects of subject matter and performance growth, it is considered that Hygeia Medical can match nearly 50 times of the oversubscription. Perhaps realizing that they had invested in the wrong target, investors gradually "withdrawn" funds. As of midnight on June 12, HYGIEIA's financing amount dropped to approximately HK$4.65 million.

Those "silly and unclear" securities abbreviations

Few people would have thought that even in the mature Hong Kong stock market, such "own" incidents about securities abbreviations would still occur. It’s no wonder that Jingdong Group -SW (09618) and NetEase -S (09999) choose eye-catching or special meaning stock codes.

In fact, there are countless stories about stock abbreviations in the capital market. For example, there have been listed companies that have long intended to change their securities abbreviations to “new, novel, and special” to attract investors.Among them, a typical example is Duolun shares in the A-share market. In May 2015, changed its name to Pitupi (currently known as "ST rock "). Duolun shares gained 8 shares within 9 trading days after the name change. Daily limit, staged a "black-bone chicken into a phoenix" drama.

Hong Kong stocks are not far behind. Pingshan Tea was renamed blockchain Group (00364) in December 2016. Regarding the name change, Blockchain Group once said that "changing the company name will reflect the group's future strategy, and the new name will be able to create a refreshing corporate image and identity, which is in the best interests of the company and shareholders as a whole."

Looking back now , the name change of Pingshan Tea will not cause much ripples in the market in the future, and the tea mountain will still be the same tea mountain.

Quotation source: Zhitong Finance APP

According to the observation of Zhitong Finance APP, there are many examples of "collision" in the abbreviation of HYGIEIA and Hygeia Medical Securities.

For example, the "Seven Heroes" under the "Ocean Department", COSCO Marine Control (01919), COSCO Shipping International (00517), COSCO Shipping Ports (01199), COSCO Shipping Energy (01138), COSCO Shipping Development (02866), COSCO Haike (002401.SZ), COSCO SHIPPING (600428.SH). Seeing this string of stock abbreviations starting with "COSCO Shipping", it is difficult to distinguish these listed companies if you don't understand the shipping industry chain.

Another example is the seven "gourd babies" of the A-share "Silver Generation", Yinbang Shares (300337.SZ), Yindu Shares (603277.SH), Yinjiang Shares (300020.SZ), Yinlun Shares (002126.SZ), Yinlong Shares (603969.SH), Yinyi Shares (000981.SZ) and Ginza Shares (600858.SH). The securities abbreviations of these seven listed companies are similar, but their businesses are completely different. For example, Yinbang shares belong to the non-ferrous metal industry, Yinlun shares belong to the automobile industry, Yinyi shares (now "ST Yinyi") belong to the real estate industry, etc.

Due to similar abbreviations, it is common for different companies to be considered the same company. For example, Beibu Gulf Tourism (603869.SH) and Beibu Gulf Port (000582.SZ), the former is mainly engaged in tourism business, and the latter operates port business. Because the abbreviations of the two securities contain "Beibu Gulf" and both companies are from Guangxi, they are often confused. Similar ones include Taiji Industrial (600667.SH), Taiji Group (600129.SH) and Taiji Shares (002368.SZ); Tianjin Development (00882) and Tianjin Port Development (03382); China Life (601628.SH) ) and PICC (601319.SH); CSPC Group (02005) and CSPC (01093), etc.

In addition to similar abbreviations, some listed companies also have similar businesses that make it difficult for investors to distinguish them. For example, Chow Sang Sang (00116), Chow Tai Fook (002867.SZ), Chow Tai Fook (01929). Not only consumers wonder why jewelry brands are all named Zhou, investors also often wonder which jewelry stocks are named Zhou. powerful?

Of course, you have to be wary of stock abbreviations with similar homophonic sounds like HYGIEIA and HYGIEIA. For example, Changxing International (00238) and Changxing International (00803); Zhengli Holdings (08283) and Zhengli Holdings (03728); Caesar Aluminum (KALU.US) and Caesar Tourism (000796.SZ) and so on.

These numerous examples are enough to illustrate that investment decisions need to be made with caution. Confucius said: "There is no desire for haste, and there is no small gain. If you have haste, you will not achieve anything." Confucius warned us more than 2,000 years ago that we should not just do things in small pieces, and do not be greedy for petty advantages. Trying to be quick will not achieve the goal, and being greedy for petty advantages will not achieve great things.

Nowadays, anecdotes such as HYGIEIA "colliding" with HYGIEIA Medical show that some investors make investment decisions based only on the stock short name and lack an in-depth understanding of the company's business status, financial status, business strategy, development prospects, etc. , if things go on like this, once the "leeks" are cut, they can only break the teeth and swallow them.