The new shares of A-shares were broken for three consecutive trading days, and the myth of “unbeaten new shares” has changed.
On October 26, “Leader of Express Intelligent Logistics Equipment” Zhongke Weizhi was listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange with a stock code of 688211, an issue price of 90.2 yuan per share, and an issue price-earnings ratio of 61.31 times. On the first day of trading, it suffered a break and fell slightly by 0.22%.
As of yesterday’s noon, it closed at 83.0 yuan per share, and fell more than 10% to 81 yuan per share during the intraday trading session. The minimum floating loss was 4,600 yuan based on 500 shares in one lot.
On October 25, Kelda on the Science and Technology Innovation Board and Corfu Medical on the GEM both broke their shares on the first day of listing. The two opened 4.9% and 10.89% lower respectively. As of the close of the day, Corfu Medical fell 4.43%, while Kelda successfully turned red and closed up 10.76%.
Prior to this, on October 22, China Self-Technology broke the issue on the first day of listing. The company’s stock issue price was 70.9 yuan, and the closing price of the day closed at 66.03 yuan, a decrease of 6.87% from the issue price.
See also IPO break
Founded in 2016, Zhongke Weizhi is a scientific and technological innovation enterprise incubated by the Institute of Microelectronics of the Chinese Academy of Sciences. It is mainly engaged in the research and development, design, manufacturing and sales of intelligent logistics sorting systems. It is a leading domestic intelligent logistics sorting system. A comprehensive solution provider, the main products include cross-belt sorting systems, large-piece sorting systems, etc.
The main customers of Zhongke Weizhi include major domestic logistics and express e-commerce companies such as Zhongtong, SF Express, Best, Shentong, Jitu, Yunda, China Post, Suning, Debon, and Vipshop.
The prospectus shows that from 2018 to 2020, Zhongke Weizhi’s R&D investment will be 21 million yuan, 78 million yuan, and 107 million yuan, with a compound annual growth rate of 128%, and operating revenues of 325 million yuan, 751 million yuan and 107 million yuan respectively. 1.204 billion yuan, a compound annual growth rate of 93%, the cumulative R&D investment in the last three years accounted for 9.05% of the cumulative operating income.
In the early trading on the 26th, among the three newly listed stocks, Zhongke Micro fell below the issue price at the opening, and once fell by more than 10% during the session. As of the noon close, it was reported at 83 yuan per share, down 7.98%.
This has been three consecutive trading days, the fourth new stock that broke on the first day of listing.
On October 24, Zhongke Weizhi released a performance report for the first three quarters of 2021. During the reporting period, the company achieved operating income of 973 million yuan, a year-on-year increase of 61.32%, and a net profit of 102 million yuan, a year-on-year increase of 32.34%.
When the Zhongke Weizhizhong lottery number was released, it was once called the “big meat sign” by the media.
In addition, Fleiant, which had just landed in the capital market on the 25th, opened the market directly yesterday morning, and closed up only 24.8% on the first day. The issue price of Fleinant is RMB 32.21 per share, and for every 1,000 shares signed, calculated at the closing price of yesterday’s noon, the profit per sign is 3970 RMB.
IPO subscription is no longer a “big meat sign”
Recently, the market has changed its style of the past, and the subscription of new shares is no longer a big stick. Take Corfu Medical (N Corfu), which landed on the GEM on the 25th, as an example. The issue price was 93.09 yuan per share, and the closing price on the first day was 88.97 yuan. , A drop of 4.43%. Calculated on the basis of a lot of 500 shares, the loss on the day was 2061.94 yuan. Among them, Corfu Medical opened 82.95 yuan, a drop of 10.89%. If investors sell new shares at the opening, the loss will reach 5,068 yuan. .
Coincidentally, on Friday, Zhongzi Technology, which landed on the Sci-tech Innovation Board, also plummeted and broke on the first day. It also became the new stock that broke again on the Sci-Tech Innovation Board after two years. The company’s issue price was 70.9 yuan per share, as of the 25th closing price. 63.97 yuan, calculated on the basis of 500 shares in one lot, the floating loss has exceeded 3,000 yuan.
Analysts believe that there are four main reasons for the successive occurrence of IPO breaks:
1. The reform of the registration system eliminated the red line of the average P/E ratio. Because of market-based pricing, the P/E ratios of some new shares were on the high side; 2. Some new shares were all issued offline, and there was greater pressure to lift the ban; 3. Some companies broke and broke the issue. The unpopular industry or the industry is in a downward trend; 4. The performance of new stocks is also related to the broader market, and most of the new stock breaks occur when the market is down. Wind data shows that as of the 25th, 36 new stocks have been broken this year, and most broken stocks have a common feature: high-priced issuance.
According to market participants, with the rapid expansion of IPOs, the myth of unbeaten new shares is becoming a thing of the past. Under the background of the registration system, three words must be paid attention to when creating new shares-fundamentals.
The agency believes that the first-day break of issuance reflects the principle of “market-based pricing” under the requirements of the registration system, breaks the “undefeated” mindset of “new stocks”, and promotes the rational return of new stock returns.
Debon Securities predicts that the expected rate of return from Dashing will fall to less than 5% in the future. Investors who use Dashing as the main source of absolute return for investment income may gradually withdraw from considering opportunity costs.
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