Monday, April 9, was the first trading day after Henglong Group released its annual report and first quarter report.
On the last trading day - April 6, Friday - Henglong's stock price closed at 18.58 Hong Kong Dollar, with a market value of approximately 10.4 billion Hong Kong Dollar.
The market has high expectations for Henglong's annual report and first quarter report, but no one knows how investors will react to the answer sheet Zhao Chen hands over.
At 8:30 in the morning, Zhao Chen was already sitting in front of the computer in Henglong Building's office.
He did not go to Trading Room, but just opened the market software and adjusted the screen to the Time-sharing Chart page of Henglong.
Chen Xi walked in with a cup of coffee and placed it on his table.
"Zhao Zong, it should open well today. The discussions on Snowball last night were mostly positive."
Zhao Chen picked up the coffee and took a sip. "Let's see. How the market goes is beyond my control."
At nine fifteen, Call Auction starts.
The share price of Henglong was pushed to 19.20 Hong Kong Dollar during the bidding stage, which was 0.62 Hong Kong Dollar higher than the closing price of Friday, an increase of more than 3%.
Buying orders are pouring in, and selling orders are sparse.
At 9:25, Call Auction ends, and Opening Price freezes at 19.18 Hong Kong Dollar.
After official trading began, the stock price did not fall back.
19.20, 19.30, 19.50--Buying Pressure pushes the stock price upward like a tide.
At ten o'clock, the stock price of Henglong exceeded 20 Hong Kong Dollar, setting a new high this year.
Trading Volume is twice the average over the past week.
Zhao Chen looked at the number on the screen and said nothing.
Chen Xi stood behind him and couldn't help but say, "The market is voting for you with money."
Zhao Chen leaned on the back of the chair and raised the corners of his mouth slightly.
"The valuation logic of Henglong has changed, and the market is pricing Henglong again."
Chen Xi thought for a while and said, "Are you saying that the market finally understands Henglong's transformation logic?"
Zhao Chen nodded.
"Yes. In the past, the market regarded Henglong as a pure real estate company and valued real estate.
Now the market is beginning to regard Henglong as a 'real estate + investment' platform, and the valuation of investment is higher than that of real estate. So the stock price has risen."
At the morning's close, Henglong closed at 20.35 Hong Kong Dollar, an increase of 9.5%. Trading Volume in half a day has exceeded the whole week of last week.
At noon, Financial Media quickly followed up.
The title of Sina Finance is "Henglong Group surged nearly 10%, and three items disclosed in the annual report Strategic Investment were recognized by the market."
The article reads:
"The annual report disclosed by Henglong Group last night shows that the company has completed the transformation from a real estate company to a 'real estate + investment' platform in the past year, with three external investments--
Yunnan Agriculture Group, Bubble Mary, Shunxin Agriculture - a total investment of approximately 1.268 billion yuan. The market responded positively to the transformation logic of Henglong, and the stock price rose by nearly 10% today."
On Snowball, the discussion popularity reached the first place on the entire site.
User "Veteran Industry Researcher" posted a short post after the market closed in the morning:
"Today's increase in Henglong is not a result of speculation in the annual report, but the transformation logic of speculation in Zhao Chen.
In the past, when Henglong focused on its main business of real estate, the market only gave it a PE of about 5 times.
Henglong's net profit in the first quarter was only 140 million. Calculated based on 20 Hong Kong Dollar per share, the dynamic price-to-earnings ratio reached 20 times.
Except for companies with explosive performance, this price-to-earnings ratio should be the highest among all Listed Company.
I think this revaluation process has just begun."
After opening in the afternoon, Henglong's stock price continued to rise, reaching a maximum of 21.00 Hong Kong Dollar. It fell slightly before closing, closing at 20.68 Hong Kong Dollar, with an increase of 11.3% throughout the day.
The market value of Henglong jumped from 10.4 billion Hong Kong Dollar to approximately 11.6 billion Hong Kong Dollar.
Zhao Chen turned off the market software, leaned back in the chair, and took a long breath.
Chen Xi was packing documents beside him and said softly, "Zhao Zong, with today's increase, your personal net worth has also increased a lot."
Zhao Chen glanced at her.
"Net worth is a number. The important thing is that Henglong's transformation has been recognized by the market.
When we make investments in the future, our financing costs will be lower, and our partners will trust us more. These are more important than the stock price itself."
There was a moment of silence in the office.
Zhao Chen leaned back on the chair and looked into her eyes.
"Do you have a plan in mind for the follow-up investment direction?"
Chen Xi was stunned for a moment, then smiled.
"You mentioned three directions before - consumption, technology, and medicine.
I have been looking at them during this period, and there are indeed several companies on my tracking list."
Zhao Chen did not interrupt her and waited for her to continue.
Chen Xi opened the notebook and spoke a little faster than usual.
"On the consumer side, I'm looking at Shunxin Agriculture in the same industry, but I prefer the high-end Baijiu. However, the valuation is too high and I can't buy it.
In addition, there is no other company in China that can sell Bubble Mary and Designer Toys Sector.
So when it comes to consumption, I haven't found a particularly good target for the time being."
She turned the page.
"On the technology side, I am paying attention to two companies. One is Dening Times, the leader in power batteries, which is lining up for IPO.
New Energy The automobile industry has exploded, and batteries are the core link. Dening Times's domestic market share has exceeded 40%.
The other one is Bidiya, which has both electric vehicles and batteries, with a full industry chain layout, but its valuation is cheaper than Dening Times."
Zhao Chen's fingers paused on the table for a moment. Dening Times.
Bidiya.
These two names, in his Previous Life memory, are the two most dazzling stars in the next five years.
Dening Times went from billions to hundreds of billions, and Bidiya went from hundreds of billions to trillions.
Chen Xi can list these two companies at this time, which shows that her research is not just a general talk, but she has really struck a gold mine.
Chen Xi didn't notice the change in Zhao Chen's expression and continued.
"On the pharmaceutical side, I'm looking at two companies. One is Tongce Medical, a leading dental chain, with a very light business model and strong replicability.
The other one is Pianzaihuang, a time-honored traditional Chinese medicine brand with pricing power for its core products and few competitors.
There is another one - Mairui Medical, a leader in medical equipment, including monitors, ultrasound, and in vitro diagnostics, with a complete product line.
I think these three companies are good, but their valuations are not cheap, and they may need to wait for a correction."
She closed the notebook and raised her head to look at Zhao Chen.
"Zhao Zong, that's about it. What do you think?"
Zhao Chen was silent for several seconds.
He looked at Chen Xi, with something inexplicable in his eyes.
Not surprised, but surprised - surprised by her growth rate.
A year ago, she was Zhengfa University's counselor and knew nothing about investing.
A year later, she sat in Henglong's office and said Dening Times, Bidiya, Tongce Medical, Pianzaihuang, Mairui Medical.
Each of these names is a bull stock worth five times or even ten times in the next five years.
She didn't know how these companies would grow in the future, but she relied on her own research to dig them out from more than 3,000 Listed Company.
"Chen Xi," Zhao Chen spoke, his voice softer than usual,
"Do you know what level these companies you just mentioned are?"
Chen Xi was stunned for a moment. "What level?"
Zhao Chen did not answer directly.
He stood up and walked to the window, turning his back to her.
"Dening Times, the leader in power batteries.
In the next five years, the penetration rate of global New Energy cars will increase from less than 2% to more than 20%.
My investment in Tesla was also based on this judgment.
And every car needs a battery. Dening Times will go from a company worth tens of billions to a company worth hundreds of billions or even trillions."
He turned around and looked at Chen Xi.
"Bidiya, whole industry chain layout. Electric vehicles, batteries, Semiconductors, Energy Storage.
The market now only regards it as a car company and gives it the valuation of a car company. But its value goes far beyond making cars. In the next five years, its market value will increase several times.
The important thing is that the stock god old man also holds Bidiya."
Chen Xi's eyes lit up, but he didn't interrupt.
When she was researching Bidiya, she only knew that Hong Kong Stocks had a shareholder named WESTERN CAPITAL GROUP LLC, which held 20% of the share capital of Bidiya Hong Kong Stocks.
At the time, she didn't know the background of the organization.
She didn't expect that Zhao Chen didn't investigate and knew more than she did.