Investment Research Report
[Main Funds]Top hot money such as Zhang Mengzhu, Liyang Road and other top hot money has bought 1 share over 1 billion! Monthly data releases heavy signals (with beneficial shares)
[Super large order]Military industry ushered in new historical opportunities! A wave of cattle on the road? The leading configuration of the subdivision track is at the right time (with beneficiary shares)
[Funding changes in late trading]Why did foreign investors hit the market? Nine stocks were sold wildly for over 100 million! Analysts raise target prices for 10 stocks on the fire line (list)
[Institutional research]Xie Zhiyu, Liu Yanchun, Sun Qingrui, etc. start investigating 1 share! “Industrial MSG” ushered in a new five years (with beneficial shares)
The original title 10 days 9 big bull stocks suddenly fell to the limit!The latest response is coming
Reporter Li Kelong
August 19, 10 days 9 boardValin CableThe magic is no longer, the stock price fell to the limit and closed at 21.57 yuan, failing to continue to refresh the highest point in history. Among them, the net outflow of funds was 95 million yuan, and the turnover rate was 11.23%. As of today’s limit-down seal, there are still 190,200 lots of the stock to be traded.Everbright Securities、Industrial Securities、Oriental wealthThe net sales amount of securities and other business departments are all around 10 million yuan, 5Orient SecuritiesDid not buy a share, and sold a net 10.78 million yuan; in the buyer’s seat, only bought 1China GalaxyNet purchases of securities exceeded 10 million yuan.
In the evening of the same day, the cable giant Valin Cable issued 23 announcements in a row, involving the appointment and dismissal of personnel and performance descriptions. How about the stock price performance on August 20?
Investors’ concerns
On June 24, Valin Cable was listed on the main board of the Shenzhen Stock Exchange and officially listed and traded at an issue price of 3.67 yuan per share and an issue price-earnings ratio of 22.98. In less than two months, the stock price rose by 588% and the price-earnings ratio rose to 100 times.
History is always similar. The day after the issuance of Valin Cable, its stock price went through a wave of ten consecutive boards and then fell to a limit. After a period of sideways, the company’s share price began to rise again on August 5, and it reappeared after 10 days and 9 boards. .
The company issued an announcement stating that stocks have risen sharply recently, and there may be risks of speculation in the secondary market. The board of directors of the company reminds investors to pay attention to the risks of secondary market transactions. After verification, from August 2, 2021 to August 16, 2021, the company’s directors, supervisors, senior management personnel and their immediate family members did not buy or sell the company’s stock, and there was no suspected insider trading.
The stock price of Valin Cable rose largely due to the fact that Valin Cable was included in the military industry, UHV, and electrical equipment concept stocks, as well as new energy vehicles and energy storage concepts.
According to the official website, the company’s main business is power cables, cables for rail transit and high-speed locomotives, special weather-resistant super soft cables for mines and wind power, cables for electrical equipment, cables for aerospace and weaponry, and highly flame-retardant and fire-resistant cables.
On the Shenzhen Stock Exchange Interactive Easy Platform, Valin Cable responded to investors’ questions and stated that at present, the company provides supporting wire and cable products for suppliers of new energy automobile companies. Although the company has not yet set foot in the energy storage industry, it is conducting relevant technical research.
It is worth noting that the composition of wires and cables is roughly divided into conductors, insulating layers, shielding layers, and sheathing layers. The conductor material is mostly copper. Valin Cable pointed out in the announcement that, on the one hand, price fluctuations of copper materials will directly affect the company’s product costs and sales pricing, and further affect the company’s product gross profit margin and profitability; on the other hand, copper price increases will lead to The company’s raw material purchases occupy a large amount of working capital, which increases the company’s working capital pressure.
In addition, there are currently tens of thousands of cable manufacturing companies in my country, most of which are small in scale, and the products are single and mostly concentrated in the field of general-purpose cables. The homogeneity is serious and the market competition is very fierce. The overall overcapacity has led to lower profit margins in the industry. However, the production capacity of high-end cables is insufficient.
Many investors are worried that the stock price will fall to the limit again on August 20, but some investors believe that the performance is better than expected and the stock price should rise.
The “vessels” of the national economy
Tianyan Check shows that the two largest shareholders of Hualing Cable, HunanValin SteelThe Group Co., Ltd. and Xiangtan Iron and Steel Group Co., Ltd. hold 49.74% and 41.8% of the shares respectively, and both are backgrounded by the Hunan State-owned Assets Supervision and Administration Commission.
Wires and cables are known as the “vessels” of the national economy, involving electric power, rail transit, new energy, communications, ships, intelligent equipment, metallurgy, petrochemicals, port machinery, ocean engineering, industrial and mining and other fields. Statistics show that in 2019, China’s total electricity consumption exceeded 7 trillion kWh, an increase of about 4.5% over the previous year, accounting for nearly 30% of the global electricity consumption, much higher than the second place in the United States.
Valin Cable is also one of the manufacturers of special special cables.China Railway, National Energy Group and other enterprises have cooperative relations.
In addition, the company’s performance was better than expected. In the first half of 2021, Valin Cable’s operating income was 1.019 billion yuan, a year-on-year increase of 40.42% compared to 726 million yuan in the same period of the previous year. Net profit attributable to the parent was 66.497 million yuan, an increase of 222.5% compared to 20.623 million yuan in the same period last year. Basic earnings per share increased 240% year-on-year to RMB 0.17.
The announcement also mentioned that Tang Wei, a non-independent director of the company, voluntarily submitted an application for resignation. After resignation, he would no longer hold any position in the company. The high-level change occurred in less than two months after listing.
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Editor in charge: Wang Han
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