"Will investors give up the huge profit of 20,000 yuan per sign?"
is the title of the largest unicorn enterprise, and every move before and after the issuance of Foxconn Industrial Internet Co., Ltd. (commonly known as "Foxconn", stock abbreviation "Industrial Foxconn") has attracted market attention. Previously, the institution stated that the new stock that could make 20,000 yuan with one sign was abandoned on a large scale after the winning results were announced.
On the evening of May 29, a subscription announcement released by Foxconn showed that 3.3331 million new shares that had won the lottery were abandoned, with the amount of abandoned purchases reaching 45.9 million yuan, which also made Foxconn the highest abandoned purchase in the history of A shares .
It is reported that before Foxconn, the new stock that had the largest number of abandoned shares was Huaneng Hydropower. At the end of 2017, Huaneng Hydropower issued 1.8 billion shares at an issue price of 2.17 yuan. A total of 4.4975 million new shares were abandoned online and offline, with the amount of abandoned purchases reaching 9.7596 million yuan. After its listing, the stock price once rose to 6.12 yuan at its highest, an increase of 182.02% from the issue price. The 4.4975 million new shares reimbursed by the underwriter made a profit of at least 9.3548 million yuan.
public information shows that the number of shares that had previously abandoned purchases of more than 1 million shares include Shanghai Bank , Huaan Securities , Jiangsu Leasing, China Film, China Nuclear Construction, Zhongyuan Securities , Guiyang Bank , China Galaxy, Silver Nonferrous Metals, etc. Most companies did not break the issue price after being abandoned, and still maintained good stock price growth.
60 million expected returns were unclaimed
On the evening of May 29, Foxconn issued an announcement on the results of stock issuance, which showed that Foxconn was abandoned for purchases of 3.3331 million shares, totaling 45.8964 million yuan. Judging from the history of A-share abandonment, Foxconn's abandonment amount of 45.8964 million yuan set a record for abandonment amount in the history of A-shares, more than 15 million yuan higher than the second-place Shanghai Bank.
investors' withdrawal has resulted in the amount of 45.8964 million yuan abandoned this time. CICC, the lead underwriter of Foxconn, will be underwritten by CICC. However, since some of the shares of Foxconn's offline allotment have a restricted period, 813,600 of the 3.3331 million shares under CICC are restricted shares, totaling 11.2036 million yuan, and transactions can only be carried out one year later.
From the perspective of profit, the 3.3331 million shares that were abandoned this time may generate high returns. The prospectus shows that Foxconn's price-to-earnings ratio for this is only 17.09 times. Compared with the industry's static price-to-earnings ratio released by the CSI Index, there is still a lot of room for growth. If it reaches the average price-to-earnings ratio after listing, these abandoned new stocks will generate a profit of 65.98 million yuan.
has media analysis. According to Foxconn's winning numbers, most winning investors win one (1,000 shares). If we refer to the recent unicorn WuXi AppTec, the profit of winning one can reach 42,800 yuan; if we estimate based on the average 7 daily limit hits before the opening of new stocks listed this year, we can earn 20,000 yuan.
China's A-share market has always had the habit of "new stocks". For the majority of stock investors, as long as they win the new stocks, the probability of getting higher returns in the short term is almost 100%, especially industry giants like Foxconn. Moreover, during this release, 20 strategic investors including the national team, central enterprise team, and BAT participated in Foxconn’s strategic placement, and the market confidence is obvious.
However, why do retail investors run away when they are almost stable and profit-making? Didn’t they happen to see the notice of winning the lottery? In the final analysis, it is still inseparable from Foxconn's own operations.
's debt ratio has soared to 80% before listing
When Foxconn was applying for online subscription, Tencent Finance once published a document questioning its abnormally high valuation level, believing that "Foxconn is like a 'file cabinet'."
reported that a large number of companies under Foxconn are suspected to be empty shells, including companies such as Jiyuan Hongfujin, Wuhan Yuzhan, Hebi Yuzhan, Dezhou Fuhong, etc., whose net assets and net profits are almost zero in terms of the financial statements, and the real operation situation is difficult to determine. The total net profit of the 60 subsidiaries under Foxconn has almost not changed in the past three years. Some companies are like a "file bag". Under the control of , Guo Taiming and , they are randomly placed in "file cabinets" like Foxconn, the Hon Hai Group.
What impact will Foxconn have become a "file cabinet"? Wang Liying, an analyst at Orient Securities, told Beijing Time that it is not new to listed companies that have some subsidiaries. Some subsidiaries are established only because of regulatory requirements. However, investors need to be vigilant that listed companies may conduct related transactions with subsidiaries, which brings operating risks.
In addition, Foxconn's revenue growth in the past three years will also face challenges in the future.
Judging from the revenue situation in 2017, communication network equipment and cloud service equipment are the main components of their revenue. The two contributed a total operating income of 334.9 billion yuan, accounting for 94.85% of the total revenue, of which the gross profit of communication equipment contributed 29.279 billion yuan, with a year-on-year growth rate of 24.88%.
However, Time Finance noticed that its prospectus also disclosed its production and sales summary table. The sales table shows that the sales volume of its various types of equipment has not changed significantly in the past three years, and the sales volume of network equipment and telecommunications equipment is even lower than in 2015. The increase in its revenue mainly depends on the rise in the unit price of the product.
has more than that.
From 2015 to 2017, Foxconn's net profit was above 10 billion yuan, but in 2017, shareholders' equity dropped sharply by 48.2 billion yuan compared with the previous year, and the debt-to-asset ratio also soared from 42.89% to 81.03%. The rise in
's liabilities is mainly due to the increase in its accounts payable. Judging from the prospectus, as of the end of 2017, Foxconn's accounts payable to Hon Hai Precision (including Hon Hai Precision and its subsidiaries and Hon Hai Precision's joint ventures) reached 25.4 billion yuan, an increase of 19.8 billion yuan compared with the previous year, and other payables to Hon Hai Precision also increased from 1.8 billion yuan to 12.3 billion yuan, with a total increase of 30 billion yuan.
balance sheet shows that Foxconn's liabilities reached 120.4 billion yuan in 2017, doubled from 58.2 billion yuan in 2016, while Foxconn's profits have not seen much growth trend in recent years.
Another controversial point of Foxconn's listing is that although the company is listed on the A-share market, the Apple assembly business carried out in the mainland is not included in the company's business scope. If Terry Gou wants Foxconn to acquire this business in the future, it will inevitably pay high costs, which is suspected of cutting mainland investors' leeks.
Time Finance called Foxconn's secretary to the board of directors on the above issues, but no reply was received as of press time. (Beijing Time Finance Intern Guan Lidan)
