Financial Services Association, May 30 (Reporter Shen Shuhong) At around 10:33 a.m., Changchun Hi-Tech, known as “Yao Mao,” experienced a rapid dive. At one point, the stock price fell more than 7%, drawing widespread attention in the market. As of the afternoon close, Changchun Hi-Tech News was 104.49 yuan, a decrease of 6.05%. The latest market value was 42.258 billion yuan.

According to market sources, the cause of the sharp drop in Changchun Hi-Tech's stock price may be related to the rumored problem of the majority shareholders' capital occupation. However, Changchun Hi-Tech later responded that the current production and operation situation is normal, and that the company's other accounts receivable from the Changchun High-tech Zone Management Committee are not a situation where the majority shareholders illegally occupy the listed company's capital. There is no risk of bad debts with the relevant funds, let alone the so-called ST risk.

Compared with the high on May 17, 2021, Changchun Hi-Tech's stock price has already dropped 78.75%. In the past three years, with the exception of individual index funds that still rank among the top ten tradable shareholders, many star products that previously held heavy positions in this stock have already embraced the new “value depression.” The National Social Security Fund portfolio 118 and 104 portfolio, which also held the shares at the end of the second quarter of 2021, as well as China-Europe Healthcare managed by Gülen, and E-Fangda's competitive advantage companies managed by Feng Bo were not on the list of the top ten tradable shareholders of Changchun Hi-Tech after holding it for several quarters.

In the first quarter of this year, a total of 34 institutions held Changchun Hi-Tech. Of these, 26 institutions reduced their holdings in the first quarter, 2 had no change in the number of shares held, 4 increased their holdings, and 2 new entrants to Changchun Hi-Tech were among the top ten largest stocks.

The pharmaceutical giant crashed

According to rumors, if the capital occupation issue of Changchun Gaoxin's majority shareholders is not resolved for a long time, it may cause Changchun Hi-Tech to face the risk of being treated by ST (special treatment).

After the rumor spread, Changchun Hi-Tech responded that with regard to investors' recent concerns about the company's receipt of other accounts receivable from the Changchun High-tech Zone Management Committee, the company reiterated that it was not a situation where the majority shareholders illegally occupied the listed company's funds. There was no risk of bad debts with the relevant payments, let alone a so-called ST risk.

Looking at business performance alone, Changchun Hi-Tech has achieved steady growth in performance over the past year. In 2023, the company achieved net profit of 4.532 billion yuan, an increase of 9.47% over the previous year, and achieved operating income of 14.566 billion yuan, an increase of 15.35% over the previous year.

In terms of revenue structure, Changchun Hi-Tech's performance growth was mainly due to the good performance of its subsidiary Jinsai Pharmaceutical. In 2023, Jinsai Pharmaceutical's revenue was 11.084 billion yuan, up 8.48% year on year, and net profit to mother was 4.514 billion yuan, up 7.04% year on year. In addition to Jinsai Pharmaceutical, Baike Biotech, Huakang Pharmaceutical and Hi-Tech Real Estate also showed a good growth trend. The revenue of related companies was 1,825 million yuan, 703 million yuan and 915 million yuan respectively, with year-on-year increases of 70.30%, 6.73% and 13.71%, respectively.

In the first quarter of this year, the company also had good performance, with revenue of 3.177 billion yuan, up 14.39% year on year; net profit to mother was 859 million yuan, up 0.2% year on year.

Despite ongoing market rumors, Changchun Hi-Tech is actively giving back to shareholders. The company recently announced that it will distribute a cash dividend of 45 yuan for every 10 shares to all shareholders, raising the dividend ratio to 39.93%. The company will distribute 1.81 billion yuan to shareholders, which is close to the sum of its 10-year dividends.

However, in the face of stock price trends, many investors are still “uneasy.” In an investor survey with strong negative sentiments on May 29, some investors raised their own questions to Changchun Hi-Tech executives, “Stock prices have been falling continuously for several years, and management has been slow to come up with effective measures, and they need to re-examine their abilities... Instead of always exaggerating, there has been no action. This is a heavy blow to market confidence.” “Are company valuations the norm right now? Is there any chance of it being lower?” “It is highly recommended to repurchase and cancel even if the mid-term dividend cancellation actually increases the stock price.” “Please don't use the information in the financial report to answer...”

In response, Changchun Hi-Tech will strive to return investors with better performance. The company also said that judging from the global market size, the market size of the global growth hormone industry has remained stable. In terms of product segmentation, in terms of growth hormone sales by Jinsai Pharmaceuticals, the market share of water injections and long-acting dosage forms has increased year by year since the launch of electronic injection pens in 2016.

Star funds that once flocked to them are fleeing one after another

Compared with the high on May 17, 2021, Changchun Hi-Tech's stock price has fluctuated and declined for more than 3 years, and has already fallen by 78.75%. The stock price, which was as high as 520 yuan three years ago, and the market capitalization of over 210 billion yuan seems so far away now. In the past three years, with the exception of individual index funds that still rank among the top ten tradable shareholders, many star products that previously held heavy positions in this stock have already embraced the new “value depression.”

For example, the China Social Security Fund 118 Group, the seventh largest tradable shareholder at the end of the second quarter of 2021, withdrew from the list of the top ten tradable shareholders of the National Social Security Fund in the first quarter of 2023 after continuing to take heavy positions in the stock until the end of 2022; the 104 groups of the National Social Security Fund also “fled” in the third quarter of 2021.

China Europe Healthcare, managed by Gülen, withdrew from its top ten tradable shareholders list in the first quarter of 2022 after being heavily invested in Changchun Hi-Tech for several quarters; E-Fangda's competitive advantage company, which Feng Bo is in charge of, also had similar operations to Gülen. By the end of the first quarter of 2022, this product was no longer on Changchun Hi-Tech's top ten tradable shareholders list.

As time progressed to the first quarter of this year, a total of 34 institutions held Changchun Hi-Tech. Of these, 26 institutions reduced their holdings in the first quarter, 2 had no change in the number of shares held, 4 increased their holdings, and 2 new entrants to Changchun Hi-Tech were among the top ten heavy-held stocks.

Among them, compared with the end of the fourth quarter of last year, Central Huijin still holds 6.427,200 shares of the company, with a market value of 772 million yuan, ranking the fifth largest tradable shareholder. Institutions that reduced holdings include China Merchants Fund, E-Fangda Fund, SDIC UBS Fund, Cathay Pacific Fund, Tianhong Fund, Huatianfu Fund, Penghua Fund, Financing Fund, and Huaxia Fund.

However, among the above institutions, E-Fangda Quality Momentum, managed by Chen Hao, held 1,069,800 shares of Changchun Hi-Tech for three years; Anxin, which is jointly managed by Nie Shilin and Zhang Rui, has a new target of entering this stock as the top ten heavy-duty stocks.

Institutions that increased their holdings in the first quarter include Huatai Berry Fund, China-Europe Fund, and Ping An Fund. Among them, Huatai Berry Fund and Ping An Fund mainly “passively” increase their holdings in index funds. Meanwhile, Wang Jian, with a management scale of nearly 8 billion yuan at the end of the first quarter, was in charge of Sino-European New Dynamics, China-Europe Value Growth, China-Europe Jiaze, China-Europe Balanced Growth, China-Europe Jiahe's three-year holding period, and China-Europe Guangyi's one-year holding period. All six products increased their holdings in this share, bringing the total number of shares held to 1,641,500 shares.

In addition, Zhonggeng Value, which is jointly managed by Qiu Dongrong and Wu Chenggen, flexibly allocated the new Changchun Hi-Tech stock at the end of the first quarter. The number of shares held was 526,000 shares, and the market value of the position was 63.219,900 yuan.

At the time, Qiu Dongrong explained his position approach, “Whether it is the hard supply constraints of traditional industries or the supply creation needs of emerging technologies, I want to meet the requirements of three aspects. One is supply contraction, and the better situation is that supply leads demand; second, demand risk release is sufficient or space is broad; the ideal situation is for rapid growth or continuous high growth; third, the fundamental risk release of stocks. The pattern is clear, the competitive advantage is outstanding, and a high-quality company with two high characteristics (high profit growth and high elasticity)...” In the pharmaceutical field, Qiu Dong is a high-quality company with two high characteristics (high profit growth and high elasticity)...” Rong said he is concerned It is based on the country's huge population base, and it is possible to explore some segments where needs are determined.

In the same period, Xinyuanxin Trend, a small-scale product managed by Liu Yutao, a fund manager of Xinyuan Fund, also entered the stock as the eighth largest position. The number of positions held was 8,000 shares, and the market value of the positions was less than one million yuan.