On May 14, Lianmei Holdings (600167.SH) opened low in the morning and rebounded slightly. As of the close of the day, the stock hit the daily limit with a large volume of 169 million yuan in trading throughout the day.
htmlOn May 15, Lianmei Holdings opened lower by 3.9%, and its stock price fell by more than 7% in the afternoon. As the end of the trading session, the stock was pulled up and the decline narrowed. As of the close, the stock fell 2.6%, with a two-day decline of 12.34%. The stock price closed at 12 yuan, with a full-day turnover of 189 million yuan, and the latest total market value was 21.121 billion yuan.
(Picture source: Futu Securities)
It is worth mentioning that some investors believe that Lianmei Holdings was hit to the limit on the 14th because of ambiguity in the company's name.
For this reason, the official Weibo of Lianmei Holdings specially issued a statement explaining that the meaning of "Alliance is - Lianmei's future, Meili Life" in the company name.
(Picture source: Lianmei Holdings Official WeChat)
Performance has grown steadily
According to the information reviewed by Glomenghui, Lianmei Holdings was established in January 1999 and entered the A-share market shortly after its establishment. The company's main business is heating, power supply, gas supply, house rental, municipal construction, engineering construction, and property management businesses. In addition, the company entered the high-speed rail digital media business through its acquisition of Zhaoxun Media in 2018.
At present, the company's controlling shareholder is Lianzhong New Energy Co., Ltd., with a shareholding ratio of 54.17%; the actual controllers are Su Zhuangqiang , Su Guanrong, Su Suyu, Su Wuxiong, and Su Zhuangqi, with a shareholding ratio of 41.44%, 14.51%, 11.2%, 2.79% and 1.27% respectively.
financial report shows that Lianmei Holdings' net profit from 2014 to 2018 was RMB 163 million, RMB 459 million, RMB 699 million, RMB 1.048 billion and RMB 1.317 billion, respectively. It can be said that the company's performance has been growing steadily in the past five years.
(Picture source: Tonghuashun)
. According to the first quarter report of 2019 disclosed on April 30, the company's total operating income during the reporting period was 1.407 billion yuan, a year-on-year increase of 9.59%; the net profit in the same period was 780 million yuan, a year-on-year increase of 25.28%, and its performance is still very good.
However, Lianmei Holdings' high premium acquisition of Zhaoxun Media may have an impact on its continued positive performance.
In July 2018, Lianmei Holdings announced that its subsidiary Shenyang Huaxin Lianmei Asset Management Co., Ltd. plans to acquire 100% of the equity of Zhaoxun Media for 2.3 billion yuan. As of June 30, 2018, the book value of all shareholders' equity in the transaction target was approximately RMB 265 million, and the premium rate of the transaction price was 769.45% compared with the book value.
At the same time, the original shareholders of Zhaoxun Media also made performance commitments: the total net profit realized from 2018 to 2020 will be no less than 572 million yuan in three years.
The original shareholders also expect Zhaoxun Media’s audited net profit attributable to the parent company will be RMB 150 million, RMB 188 million and RMB 234 million respectively from 2018 to 2020.
. According to Lianmei Holdings' annual report in 2018, Zhaoxun Media achieved operating income of approximately RMB 375 million during the reporting period, an increase of 10.95% year-on-year; net profit of approximately RMB 159 million, an increase of 26.92% year-on-year. Compared with
, Zhaoxun Media's performance commitment in 2018 has reached expectations, but the net profit exceeds the expected target is not much. Whether the subsequent performance commitments can be successfully completed in the future will take time to verify.
failed to be selected for MSCI
Although the acquisition of Zhaoxun Media at a premium of 7.7 times may affect future performance, judging from the current situation, Lianmei Holdings' performance is still very good.
In fact, the reason why the company's stock price fell in the last two trading days was not because of performance issues, nor because of the ambiguity of the name, but because the company missed the opportunity to be selected for MSCI and was sold out by an institutional sell-off.
htmlOn March 1, MSCI announced that it would increase the weight of China's A-shares in the MSCI index and increase the inclusion factor of China's A-shares from 5% to 20% through three steps.At that time, 168 stocks, including Lianmei Holdings, Hengli Hydraulics (601100.SH), and Hisense Electrical (002092.SZ), were selected as potential constituent stocks of the MSCI China mid-cap A-share index.
On May 14, an announcement released by MSCI showed that MSCI China A large stock index will have 26 new stocks and have not been deleted, resulting in a total of 264 index components.MSCI China Midcap Stock Index will have 29 new stocks and exclude 5 original stocks, totaling 173 index components. However, there is no name for Lianmei Holdings in this new stock list.
On the same day, Lianmei Holdings encountered a large volume of limit down and topped the Dragon and Tiger List.
list shows that the Hangzhou Xinbei Road Securities Branch of Wugang Securities Co., Ltd. ranked first in the buying list with 10.2647 million yuan; Founder Securities Co., Ltd. Cangnan Longgang Avenue Securities Branch ranked second with 7.5368 million yuan; Xin Securities Co., Ltd. Hangzhou Xintiandi Securities Branch bought 2.9543 million yuan, ranking third with buying; An Securities Co., Ltd. Yinchuan Fenghuang North Street Securities Branch and Tibet Oriental Fortune Securities Co., Ltd. Lhasa Tuanjie Road Second Securities Branch ranked fourth and fifth with purchase amounts of 2.5102 million yuan and 2.1461 million yuan respectively.
is on the selling list. Both sell first and three seats are for institutions, with sales amounts of 79.7072 million yuan and 12.611 million yuan respectively; the second place is the Client Asset Management Department of First Entrepreneurship Securities Co., Ltd., with sales amounts of 29.9672 million yuan; the northbound capital Shanghai Stock Connect special seat sold for 10.09 million yuan, ranked fourth.
(Picture source: Oriental Fortune Network)
It is worth noting that northbound funds had a net outflow of 10.587 billion yuan on the 14th, of which the Shanghai Stock Connect had a net outflow of 6.999 billion yuan and the Shenzhen Stock Connect had a net outflow of 3.589 billion yuan. The net outflow of northbound funds exceeded 10 billion yuan has only occurred four times in history.
In addition, Lianmei Holdings also has the characteristics of high concentration of equity.
public information shows that as of the end of the first quarter of 2019, the top ten circulating shareholders of Lianmei Holdings held 629 million shares, accounting for 76.5% of the circulating market, and most of them were institutions. In addition, as of the end of the first quarter of 2019, the company's number of shareholders was only 8,373, and the shareholding ratio of the top ten shareholders was as high as 89.01%.
(Picture source: Tonghuashun)
All signs indicate that most of the shares of Lianmei Holdings are concentrated in the hands of a few shareholders, especially institutional shareholders. If the equity is too concentrated, it is easy to cause a consistent selling, causing a sharp drop in the stock price.
According to current information, Lianmei Holdings has missed the opportunity to be selected for MSCI this time. If the subsequent performance continues to improve, there may be a chance to be selected.
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