Yesterday (8/12),*ST Huaxin(002018) failed to perform a miracle. It fell to a halt again, closing at 0.74 yuan/share. The closing price was below the face value of 1 yuan for 16 consecutive trading days. Even if the stock price continued to rise and stop for the next 4 trading days, it was impossible to return above 1 yuan.*ST HuaxinIt may become the third individual stock to be “delisted at face value.” In just ten months, there are now many low-priced stocks. One is delisted, and two are in jeopardy. What happened to them? Should investors avoid these types of stocks? Let's take stock one or two.
▍ “using meat to pay off debts”*ST Young HawkIt may become the second stock to be “delisted for 1 yuan”
On October 18 of last year, Zhonghong Co., Ltd. was forcibly delisted because its closing price was below the face value of 1 yuan for 20 consecutive trading days, making it the first A-share to be “delisted at face value”.
On August 1 of this year, *ST Young Eagle (002477)'s stock price closed at 0.69 yuan/share, a decrease of 5.48% on the same day. *ST Young Eagle issued an announcement in the evening stating that the closing price of the company's shares has been below the face value of the stock for 20 consecutive trading days (that is, 1 yuan). Trading of the company's shares has been suspended since August 2, and the Shenzhen Stock Exchange has made a decision on whether to terminate the listing of the company's shares within 15 trading days of the suspension of the company's stock trading.
According to the “Shenzhen Stock Exchange Stock Listing Rules”, the daily stock closing price for 20 consecutive trading days (excluding trading days where trading of the company's shares was suspended all day) was lower than the face value of the stock, and Shenzhen Stock Exchange Ownership decided to terminate the company's stock listing transaction. In layman's terms, if the closing price falls below 1 yuan for 20 consecutive trading days, it will be delisted.
*ST Young Herding, the first young eagle farmer to raise pigs in the past. The situation in recent years can be described as “miserable.” Pig prices have soared since this year, and *ST Hinamu came up with the idea of “using meat to pay off the debt” because the debt could not be paid on time, and intended to pay off principal and interest with products such as the company's ham and ecological meat gift boxes, which was astonishing. In the semi-annual performance forecast disclosed not long ago, net profit was a huge loss of 1,48-1.62 billion yuan. The explanation given by the company was a sharp decline in pig production and a sharp increase in breeding costs. In addition to this, *ST Hinamu was also investigated by the Securities Regulatory Commission on suspicion of breaking the law. If the company is administratively punished by the China Securities Regulatory Commission as a result, and the offense is a major illegal forced delisting situation, the company's stock will also face the risk of delisting. Currently, *ST Hinamu has suspended trading and is awaiting the final decision of the Shenzhen Stock Exchange. Based on the experience of Zhonghong Co., Ltd., *ST Hinamu estimates that it is impossible to escape the fate of being delisted. ▍ “White Horse Rider” can't save it*ST Huaxin
*ST Huaxin's story is very dramatic.
On August 8, *ST Huaxin's stock price has been hovering below 1 yuan for 14 days. In the evening, the company suddenly made a big move: it will sign a “Restructuring Intent Agreement” with Zhongzhou Carbon to get out of the debt crisis with the help of the other party! Influenced by favorable news, *ST Huaxin's stock price went out of the “ground to earth” on August 9, closing at 0.78 yuan. If in the next 5 trading days* ST Huaxin can reap 5 consecutive gains and stops. After rounding, that is, 0.82 yuan, 0.86 yuan, 0.90 yuan, 0.95 yuan, and 1.00 yuan, the company's stock price will just be able to stand on the “life and death line” of 1 yuan, thus temporarily escaping the “face value delisting” crisis.
However, a letter of concern from the Shenzhen Stock Exchange followed. The Shenzhen Stock Exchange pointed out that the company is currently being investigated by the Securities Regulatory Commission due to alleged false records in the 2017 annual report. According to regulations, listed companies are not allowed to issue shares to purchase assets during this period. Furthermore, there is a big difference between the main business of Zhongzhou Carbon and the company. The company is required to explain whether credit disclosure has been used to influence stock transactions and raise stock prices based on the feasibility and compliance of this cooperation. In the end, yesterday's miracle didn't happen. By the close of the market, more than 140,000 hands had been blocked and fell to a standstill. The legend of “The White Horse” was worth nothing but a stop. In the next few days, there is no hope that the company's stock price will return to 1 yuan. Judging from yesterday's receipt, it is expected that there will also be a large number of sales. ▍ “1 yuan shares” have soared to 69 shares. Apart from the*ST Hinamu and *ST Huaxin mentioned above, there are currently three stocks with stock prices below 1 yuan, respectivelyJinya Technology(300028),*ST Grand Control(600747),*ST Huaye(600240). Among them, Jinya Technology is suspended from listing. In addition, there are 64 stocks that are “1 yuan shares”, that is, the stock price is below 2 yuan. There is also a risk of “being delisted at face value” for such stocks, so investors are requested to be careful. Please see the table below for specific stocks.
