[Caihua Social News] SaaS (Software as a Service) concept stock 02013.HK Group yesterday also raised up to 4.32 billion yuan in the form of a rights issue and convertible bonds, and its main shareholder, 00700.HK, has agreed to subscribe for no more than 390 million yuan of placing shares.
In addition, the Weimeng Group also issued a rights issue and CB to raise funds, proposing to sell 130 million new shares at a price of 14.86 yuan to 15.26 yuan per share, a discount of 5% to 7.5% compared with yesterday's closing price of 16.06 yuan, and raised 1.93 billion to 1.98 billion yuan. Tencent, a shareholder with an 8 per cent stake, has agreed to subscribe for no more than 20 per cent or US $50 million (about HK $390 million) of shares. Weimeng has a 90-day lock-up period.
Weimeng also issued a five-year CB, with a total value of US $300m (HK $2.34 billion) with an initial coupon of 0.5% to 1%, with a 35% to 45% premium on the proposed conversion share price, which investors can redeem in the third year. Weimeng rights issue and CB, can raise up to 4.32 billion yuan.
Morgan Stanley, CICC and Credit Suisse are the joint bookrunners of the placement.
Weimeng fell 2.7 per cent yesterday, and the company's shares have fallen 51 per cent from an all-time high of 33 yuan in mid-February, but are still up 15 per cent from the end of last year.
According to a research report published by Xinhua Huifu, Weimeng's results for the first quarter of 2021 were higher than market expectations. The surprising performance in the first quarter was mainly due to the addition of a certain number of major customers in the first quarter of 2021, such as Mengniu (02319.HK), TWGTea, cotton era, etc.); the wastage rate in the first quarter was only 4.3%, which is expected to remain at about 22% for the whole of fiscal year 2021 (compared with fiscal year 2020: 26.1%). Management sees solid growth and maintains its previous guidance of 40 to 50 per cent year-on-year revenue growth in fiscal 2021.
Looking to the future, Xinhua Huifu expects that Weimeng's continued implementation of the big guest strategy and TSO (Traffic-SaaS- Operation) will further promote growth in fiscal year 21. In addition, the company raised the price of its products by 18% to 35% in the first quarter of 21, and there are no plans for further price increases this year. The bank predicts that smart retail's contribution will reach 33.5% of subscription solution revenue in fiscal year 21.
Huang Minshuo, director and group chief investment officer of Baoju Securities, said Weimeng remained confident that it aimed to add more than 1000 brand customers and its ARPU rose by more than 6 per cent from last year to more than 300000 yuan this year. In addition, the Group and Tencent Ads, a subsidiary of Tencent, released "Tencent Plan 2.0" to launch intelligent Rubik's cube data products to further enhance the efficiency and accuracy of corporate marketing. By aggregating the traffic advantages of Tencent Ads platform and Weimeng ecological service capacity, the integration of social ecological consumption behavior data, in order to optimize and improve the advertising effect, improve the account click and direct purchase rate, and the prospect is promising.