Is there really an organization to copy the bottom of "RYB Education Inc"? Four months later, the mystery was solved.
Ye Feng, editor of Meijing reporter Li Lei.
Is there really an organization that has copied the bottom of "RYB Education Inc"? After a few months, the answer has finally been solved, and the answer may not have come as a surprise to you and me.
Source: Futu Securities
RYB Education Inc, a company listed on the New York Stock Exchange, released its latest results on March 16, followed by the company's operating data. In the fourth quarter of 2017, the company's operating revenue was 39.061 million US dollars, up 20.44 percent from the same period last year, and its profit was 199000 US dollars, up 113.98 percent from the same period last year. For the whole of 2017, the annual revenue of 2017 was 141 million US dollars, an increase of 29.76 percent over the same period last year, and a profit of 7.115 million US dollars, an increase of 9.38 percent over the same period last year.
To tell you the truth, this report card is not ugly, but the Daily Business News reporter is more concerned about the simultaneous release of another data-- the shareholding changes of RYB Education Inc investors. it really reveals the market's attitude towards the company that has exposed scandals.
From the results of preliminary statistics, investors, especially institutional investors, still have an ambiguous attitude towards RYB Education Inc. The reporter thinks that for the time being, they can be divided into three factions, namely, the bottom-reading faction of "I don't care", the warehouse clearance faction of "timely withdrawal", and the fire-watching faction of "we will not move if the enemy cannot move."
It is important to note that all the following data are from the BBG financial terminal. Here are the data to witness the truth.
Don't believe it, there are real bottom hunters.
Once upon a time, "is it shameful to copy RYB Education Inc?" "there is a lot of discussion about this topic in the circle. At that time, many people in the industry also said to reporters, "it's impossible, who will buy this company at this time?" "however, punching in the face always comes so fast, and the latest data from BBG show that some institutions have actually taken this action.
RYB Education Inc was listed on the New York Stock Exchange in September 2017, in the third quarter of 2017, and two months later, in November 2017. From this, it can be inferred that if the institutions that continue to increase their positions at the end of the fourth quarter are basically going to "bottom", and they are buying strength is also relentless.
According to BBG data, 18 institutional investors bought RYB Education Inc net in the fourth quarter of 2017, buying a total of 1.305 million shares.
According to industry insiders, 12 West Capital, which has the largest increase in holdings and currently ranks first in total holdings, is an independent broker from New York, and more than one of the top ten is also economists. This wave of operation is a bit confusing. However, the reporter found a familiar name in these "bottom-hunting" companies: SHANDA ASSET MGMT HLDGS LTD.
Who's this?
The industry is also a well-known Shanda Asset Management Holdings Limited (hereinafter referred to as Shanda Asset Management). Yes, it is Shanda, which started with games and is no longer industrial. Shanda Asset Management is one of the group's main asset management platforms and was once famous for copying the bottom of Lending Club, the world's largest P2P platform. This time, they did not give up this opportunity to make a bottom.
In contrast, there are more "runners".
Although many institutions have copied the bottom of RYB Education Inc, the most real and objective data show that the majority of investors have reduced their holdings or even cleared their positions.
Reporter according to BBG data found that a total of 47 institutional investors reduced their holdings in RYB Education Inc, of which 42 took the operation of clearance, the attitude is very firm. Here, we select institutions with a reduction of more than 50, 000 shares (including). It can be seen that except for Schroeder International Merchant Bank, which also retains about 16000 shares, the rest of the institutions are directly liquidated. In these institutions, we also found two very familiar names, HILLHOUSE CAPITAL MANAGEMENT LTD (Hillhouse Capital) and GREENWOODS ASSET MANAGEMENT LTD (Jinglin assets).
Let's start with Hillhouse Capital. Earlier, when RYB Education Inc first exposed the scandal, a financial giant said that Hillhouse Capital took advantage of the opportunity to copy the bottom, and the company quickly responded that "(RYB Education Inc) was bought by IPO, not new, and the remarks are misleading." By the end of 2017, Hillhouse Capital acted decisively and sold all the 430000 shares of RYB Education Inc that IPO bought.
In addition, another well-known asset management company in China, Jinglin assets, also appeared on the list of clearance RYB Education Inc. Its latest financial results also show that the company sold out its 202000 RYB Education Inc shares as of December 31, 2017.
It is worth mentioning that in the fourth quarter of 2017, all the top 10 shareholders at the beginning of RYB Education Inc's listing have been replaced, and there is no one left. However, the total shareholdings of the new top 10 shareholders plummeted from 3.8912 million shares of the old top 10 to 1.5562 million shares, a drop of more than 60 per cent.
"if the enemy can't move, we won't move." it's more important to wait and see.
Of course, in addition to the first two cases, there is another category of institutional investors who are much more subdued. They did not take advantage of the opportunity to "copy the bottom" or reduce their positions, but lay down motionless. Fortunately, there are not many of them, only one or two of them. As of the latest trading day, there are still some institutions that have not disclosed their positions, so I will not repeat them here.
Finally, I would like to say something beside the point.
Before the reporter discussed with many people in the public offering industry, after the scandal was exposed, is it shameful to copy RYB Education Inc? What is the moral bottom line of capital?
At that time, the answer we got was polarized. some people said that there was no morality in investment, only compliance and non-compliance, and that the pricing power should be handed over to the market. Now it seems that those institutions mentioned above have successfully copied the bottom. Maybe that's what you think. Others have made it clear that companies with moral hazard are absolutely out of consideration and must stay away, which may be what companies that liquidated their positions after the crisis had in mind.
As a QDII fund manager told reporters, he does not know and do not quite understand who is buying RYB Education Inc, just as he does not know who is buying A-share shares of a video website listed company. "it's unreasonable. I'm not interested in it personally. I won't go to see it. "
In any case, although RYB Education Inc's performance is still growing, institutional investors, including fund companies, have voted with their feet and made their own choices. The so-called moral bottom line of capital markets may be reflected in the choice they make today.