Click "Fukai finance" above to pay attention to my summary of Fukai. In the first quarter, almost lost profits in 2016. Three trees rushed to increase cash flow. By Maun
Typesetting 11
Sankeshu's share price, which was still at the price of 20 yuan a year ago, has achieved a good result of breaking through the price of 100 yuan in 2020. Meanwhile, the sharp rise in net profit has also been talked about by investors. However, along with the good news of the performance rise, there was also bad news of a loss of 126 million yuan in the first quarter.
At the same time, due to the sharp decline of orders, lack of funds and other reasons, the actual controller of the company has to start to raise funds to continue the life of the company.
According to the plan for non-public issuance of a shares in 2020 issued by three trees on the evening of April 12, the price of the company's non-public issuance of shares is 69.04 yuan / share, the number of shares is not more than 579374200 shares (including the number), the total amount of raised funds is not more than 400 million yuan (including the issuance fee), which is used to supplement the working capital after deducting the issuance fee.
First quarter performance loss, institutional investors fell 90%
Since the beginning of 2019, the share price of sanjeshu has changed from horizontal to straight-line rise. Until 2020, the share price of the company once exceeded 100 yuan. In one year, the share price rose from 20 yuan to about 100 yuan, up about 334.53%. As of April 10, 2020, the company's share price closed at 95.86 yuan / share.
In response, some investors said with emotion: "the stock of more than 20 yuan has risen to nearly 100 yuan, and this investment of three trees is very cost-effective."
The company's share price has increased dramatically in the past year. Similarly, the company's performance in 2019 is also very impressive. According to the 2019 annual report, sanjeshu achieved a net profit of 406 million yuan attributable to the owners of the parent company in 2019, an increase of 82.55% year on year.
According to the statistics of tonghuashun, the net profits of three trees from 2016 to now are 134 million yuan, 176 million yuan, 222 million yuan and 406 million yuan respectively.
However, before the three tree investors are too happy with the news of the great increase in 2019, they start to worry about the news of the loss in the first quarter of 2020 and whether the company's share price will fall continuously.
Sankeshu's main business is the research and development, production and sales of building coating (wall coating), wood coating and thermal insulation integrated board, waterproof materials, flooring materials and basic auxiliary materials. The company's main products are three tree BB paint, children's health treasure, fresh breath anti formaldehyde, fresh breath anti formaldehyde, 360 anti formaldehyde, 360 anti bacteria, anti mildew, etc.
The concept of green paint has been developed rapidly since its launch. In 2017, 2018 and 2019, the company's operating revenue was 2.619 billion yuan, 3.584 billion yuan and 5.972 billion yuan respectively, with a year-on-year growth rate of 34.45%, 36.82% and 66.64% respectively.
However, from the current real estate trend, the sharp decline in the first quarter of the sales volume also affected the paint industry. In response, some investors said that affected by the epidemic, the company's loss is not uncommon, as long as after the epidemic, the company's performance recovery should not be a problem.
However, some investors also said that the current stock price of three trees would be affected, after all, the stock price of the company rose sharply in the early stage.
Although investors have different ideas about the company's share price. However, Fu Kaijun found that the number of institutional shareholders of three trees dropped sharply from 85 at the end of 2019 to 8 at the end of the first quarter of 2020.
The scale of debt has expanded, and the actual controller has provided 400 million "help"
According to the annual report of three trees in recent years, as of the end of 2017, 2018 and 2019, the company's accounts receivable and notes receivable totaled 577 million yuan, 984 million yuan and 1.925 billion yuan respectively. In response, the company explained that with the continuous growth of business scale, the company's demand for working capital is increasingly strong.
In the same way, the total liabilities of the listed companies are also growing rapidly. According to the data, from 2016 to 2019, the liabilities of the three trees were RMB 726 million, RMB 970 million, RMB 1.83 billion and RMB 3.839 billion respectively.
According to the data, with the expansion of business scale, the company's liabilities almost doubled. This has led to a sharp increase in the company's demand for cash flow. "
"According to the first quarter report in 2020, the total liabilities of the company in the first quarter are up to 3.651 billion yuan, and the liabilities in one quarter are equivalent to the amount of the whole year of last year, which shows that the company will have some debt pressure this year." Said the above.
Fukaijun found that in the first quarter of 2020, three trees' liabilities mainly came from short-term borrowings of 1.373 billion yuan and notes payable and accounts payable of 1.248 billion yuan.
At the same time, the company is faced with not only loans and accounts payable, but also notes receivable, accounts receivable and inventory in the total assets of the company. According to the above accountant, "notes receivable and accounts receivable of the company in the first quarter were 1.722 billion yuan, and inventories were 342 million yuan. Once the company is unable to recover the bill payment and there is bad debt or inventory impairment provision, the company's net profit will also be affected. "
In addition to the above liabilities, the company's cash flow in the first quarter was also negative. From the previous years, the company's net cash flow from operating activities has been a positive number, and has been growing. But by the first quarter of 2020, the company's net cash flow from operating activities has become a negative number, which is as high as - 829 million yuan.
In this regard, the accountant said: "from the company's first quarter report, the company is in a critical period of capital shortage. Due to the decline in operation, the inability to collect the accounts, the high debt and the shortage of funds, the actual controller has no choice but to increase the working capital at a fixed rate."
According to the announcement on April 12, the issuing object of the non-public issuance of a shares is Hong Jie, the controlling shareholder and actual controller of the company. As of the announcement date of this plan, Hong Jie directly holds 1228.6 million shares of the company, accounting for 65.97% of the total share capital of the company, and serves as the chairman, legal representative and related party of the company.
As for the fund-raising, it is understood that the fund raised by the non-public Development Bank is intended to supplement the working capital. The company said frankly that the capital demand for production line construction and upstream raw materials and auxiliary materials is increasing, and the company is facing greater capital pressure. The company has actively used the account period and bank short-term loan method given by the supplier to maintain the stable operation of the company. In the short term, the company will face certain liquidity risk if the customer's payment is less than expected or the credit policy of the commercial bank changes.
The company believes that raising funds through this non-public offering can effectively reduce the company's asset liability ratio, optimize the company's financial structure, and enhance the company's ability to resist risks; on the other hand, it is conducive to meeting the capital requirements brought by the growing scale of the company's operation, which is in line with the interests of the company and all shareholders.
However, the company did not guarantee its future performance. In response, the company explained: "after the completion of this issuance, the company's total equity and net assets will be further increased, and it will take a certain period from putting into use to generating benefits after the raised funds are in place, and the possibility that the company's future profitability is less than expected cannot be completely ruled out."
In addition, it is worth noting that the fixed increase of more than 5 million shares will lead to a decrease in the company's earnings per share and return on net assets and other indicators in the short term after listing, that is, there is a risk of diluting the company's immediate return in this offering.
At the same time, three trees also gave investors a preventive injection, saying: "this fixed increase will also have a certain impact on the company's future production, operation and profitability, and even the change of the company's fundamentals will affect the stock price."
"The price of shares is also affected by various factors such as the state's macro-economic situation, the industry's prosperity, and investors' psychological expectations, which may lead to stock price fluctuations that deviate from the company's fundamentals to some extent and draw investors' attention to relevant risks," the company said
From the above company explanation, the company itself seems to have some lack of confidence in the current high stock price, and repeatedly politely proposed or affected the stock price. At the time when the epidemic is not over, how the company's future performance will be unpredictable, and in the face of increasing liabilities year by year, it is also unknown how long the 400 million invested by the actual controller can support. For the company's follow-up development, we will wait and see.
Disclaimer
The information released by Fukai finance does not constitute investment proposal, so the investment risk shall be borne by itself
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