Original title: Quanjude’s “drinking” is not allowed to be suspended
The sharp rise in the market at the end of 2022 made Quanjude (002186) the first company to be suspended for verification in 2023. On the evening of January 2, Quanjude announced that due to the company’s recent stock price fluctuations, the company will suspend trading on January 3 to check the abnormal fluctuations in stock transactions. It is understood that Quanjude has attracted market attention due to the launch of sauce wine products. Although the company stated that the liquor business currently accounts for a small proportion of revenue, and whether it will bring good performance returns to the company in the future is still relatively uncertain, the stock price of Quanjude is still at a low level. In the last half of 2022, it soared all the way, with an increase of more than 100%, and the stock price hit a new high in the past five years.
Suspension for verification from January 3
Quanjude, a recent doubling bull stock, is about to suspend trading for inspection. On the evening of January 2, Quanjude issued an announcement saying that due to the company’s recent stock price fluctuations, upon application, the company’s stock will be suspended from the market opening on January 3, and trading will resume after the disclosure of the verification announcement.
The announcement shows that the stock trading price of Quanjude has accumulated a deviation of more than 20% of the closing price increase for two consecutive trading days on December 29 and 30, 2022. According to relevant regulations, it belongs to abnormal fluctuations in stock trading.
It is understood that since December 16-30, 2022, Quanjude’s stock trading has experienced abnormal fluctuations 4 times, and the stock price has fluctuated greatly. Quanjude stated that in order to protect the interests of investors, the company will conduct inspections on abnormal fluctuations in stock transactions. Upon application, trading in the company’s stock has been suspended since the market opened on January 3, and trading has resumed since the disclosure of the inspection announcement.
It is worth noting that Quanjude’s share price has doubled in the past two weeks. According to Oriental Fortune, from December 16 to 30, 2022, the cumulative increase in Quanjude’s range was as high as 106.23%, while the market fell by 3.01% during the same period, far outperforming the market. As of the close on December 30, 2022, Quanjude reported 22.83 yuan per share, up 9.18% that day, with a total market value of 7.042 billion yuan.
In addition, on December 30, 2022, the highest intraday stock price of Quanjude hit 22.92 yuan per share, which is the highest price of Quanjude stock since April 10, 2017 under the post-restoration form.
Xu Xiaoheng, an investment and financing expert, said that investors need to be cautious about chasing high speculation when investing in the secondary market, and invest based on the company’s fundamentals to avoid being caught.
In response to company-related issues, a reporter from Beijing Business Daily called the Quanjude Secretary’s Office for an interview, but no one answered the call.
The layout of liquor drives up the stock price
The sharp rise in Quanjude’s stock price is related to the company’s layout of the liquor business.
Quanjude is a “time-honored” enterprise. The company’s main business is catering services and food processing and sales. It owns brands such as “Quanjude”, “Fangshan”, “Fengzeyuan” and “Sichuan Restaurant”. Research and development, production and sales of other foods.
In December last year, an investor asked on the company’s interactive platform, “Does the company sell alcoholic products?” Quanjude replied, “The Quanjude brand liquor sold by the company includes Quanjude Erguotou liquor and the newly launched ‘Quanjude·1864 sauce. At present, Quanjude 1864 and Quanjude Legend are being sold on online platforms such as the Quanjude Tmall flagship store and in various stores inside and outside Beijing.”
In the capital market, baijiu is a popular industry, and many individual stocks have seen the market of “drinking alcohol and becoming popular”, and rumors of “backdooring of liquor companies” are also emerging in endlessly. Stimulated by this news, Quanjude’s share price rose at a high level.
According to Zhu Danpeng, vice president of the Guangdong Provincial Food Safety Promotion Association, in addition to the popular track of Maotai-flavored liquor, as the epidemic situation improves, dine-in meals are allowed all over the country, the offline real economy recovers, and the traditional peak consumption season enters. It is also the reason why Quanjude’s stock price continues to soar.
Regarding the company’s liquor business, Quanjude said that the two sauce-flavored liquors launched by the company through entrusted processing have just been launched for sale, and the business income accounts for a small proportion. Whether it can bring good performance returns to the company in the future still has a big difference. Certainty.
Behind the layout of the liquor business, Quanjude is facing certain performance pressure. Financial data show that in the first three quarters of 2022, Quanjude achieved operating income of approximately 564 million yuan, a year-on-year decrease of 22.31%; the corresponding realized attributable net profit was approximately -175 million yuan, a year-on-year decrease of 162.08%.