October 10, Wednesday, Shan City.
The day after Q3 Report was released, the stock price of Henglong Group opened at 26 Hong Kong Dollar, which was directly higher than the closing price of 21.8 Hong Kong Dollar on the previous trading day by more than 20%.
In the Call Auction stage, buying orders are pouring in like a tide, and selling orders are sparse, with almost no resistance.
After the market opened, the stock price did not hesitate at all and moved straight towards the 30 Hong Kong Dollar mark.
At 9:45, the stock price exceeded 28 Hong Kong Dollar.
At 9:55, the stock price exceeded 29 Hong Kong Dollar.
At ten o'clock, the stock price stood at 30 Hong Kong Dollar.
This is the first time that the stock price of Henglong has exceeded the 30 Hong Kong Dollar mark since the last agreement to close the position.
In Trading Room, Chen Xi stared at Time-sharing Chart on the screen, tapping his fingers lightly on the keyboard without any operation--
They never buy or sell Henglong stocks.
Su Wantang stood behind her, holding a cup of tea in his hand, looking at the steep rising curve with a calm expression.
Chen Xi said softly:
"It's 30."
Su Wantang nodded and said nothing.
At 10:15, the stock price touched 32 Hong Kong Dollar.
At 10:30, the stock price hit a record high, reaching 33.88 Hong Kong Dollar.
The total share capital of Henglong Group is 560 million shares, and the stock price of 33.88 Hong Kong Dollar corresponds to a market value of approximately 18.97 billion Hong Kong Dollar.
Zhao Chen holds approximately 64% of the shares of Hang Lung Group, with a market value of approximately HK$12.14 billion, equivalent to approximately RMB 10.8 billion.
This is not an artificial high like last year's Short Squeeze market. It is supported by real performance--
Q3 Report has a net profit of 1.78 billion, Henglong Capital has an investment income of nearly 1.5 billion, the asset-liability ratio is below 25%, and Cash Reserves has exceeded 6 billion.
Every set of numbers tells the market: Henglong is no longer the real estate company that makes its living by selling houses.
After eleven o'clock, profit-taking orders began to pour in. The stock price fell back from the high point of 33.88 Hong Kong Dollar, and went all the way down, hitting an intraday low of 29.8 Hong Kong Dollar.
But at the 30 Hong Kong Dollar mark, Buying Pressure poured in again, stabilizing the stock price.
Bulls and Bears Both sides saw each other repeatedly at this position, and finally the bulls gained the upper hand.
At the close, Henglong's stock price closed at 31.2 Hong Kong Dollar, a 43% increase throughout the day, and Trading Volume hit a new high since its listing.
After the market closed, domestic media reported overwhelmingly.
The title of Sina Finance is "Henglong Group soared 43% in a single day, Zhao Chen's net worth exceeded 10 billion."
The article reads, "Henglong Group Q3 Report released yesterday showed that the company's net profit in the first three quarters was 1.78 billion yuan, of which investment income accounted for more than 80%.
The market has highly recognized Henglong's transformation. Today's stock price soared 43%, with the market value approaching 19 billion Hong Kong Dollar.
Based on Zhao Chen's 64% shareholding ratio, this 25-year-old is worth over 10 billion yuan RMB."
First Finance's report focuses more on Zhao Chen personally.
"The 22-year-old billionaire Henglong Group Chairman Zhao Chen completed the transformation from a second-generation real estate agent to an investment tycoon in one year.
The floating profit of Henglong Capital's position exceeded 800 million yuan, and Shunxin Agriculture made a net profit of 648 million yuan from an investment.
Zhao Chen's investment vision is being repeatedly verified by the market."
The title of 21st Century Business Herald is "Henglong Group Transformation Sample: How a Real Estate Company Turns into an Investment Platform".
The article analyzed the financial structure of Henglong Group Q3 Report in detail, and finally wrote:
"Zhao Chen played a central role in the transformation of Henglong. His investment decisions directly determined the performance of Henglong Capital.
From Shunxin Agriculture to Tongce Medical, from Pianzaihuang to Bidiya, every time I took a shot, I stepped on the correct node.
This ability is extremely rare in the domestic capital market."
But what really caused a stir on social media was not the number Financial Report, but Zhao Chen himself.
A 22-year-old billionaire, unmarried.
The combination of these two keywords is enough to make any social platform boil.
On Weibo, the word "Zhao Chen" has become one of the top ten hot searches.
Someone is picking up his resume--
Zhengfa University student took over Henglong at the end of 2016. In more than a year, he turned a real estate company on the verge of collapse into an investment platform with a market value of nearly 20 billion.
Some people are looking into his love life, but there is very little information. They only know that he has a girlfriend who is also a student of Zhengfa University.
In the comment area, someone joked:
"22 years old, worth tens of billions, single. Sisters, go for it!"
Some people also calmly analyzed. "You are still spending money when you are 22 years old and you have a net worth of tens of billions at the age of 22. This is not a person of the same world."
On Snowball, the discussion is more rational.
User "Veteran Industry Researcher" posted a long post:
"Henglong's increase today is not an emotional hype, but a performance-driven revaluation of value.
Q3 Report 1.78 billion net profit, of which 1.48 billion comes from investment business.
The market used to value Henglong Real Estate at 5 times PE, but now values investment in Henglong at 10 times PE.
Combining valuation switching with performance growth, it is reasonable for the stock price to rise by 43%."
Someone in the comment area asked, "What is the reasonable valuation of Henglong now?"
The original poster replied, "Henglong Real Estate Sector has an annual profit of about 300 million, and given 5 times PE, it is worth 1.5 billion.
Henglong Capital annualized investment income is calculated as 2 billion, giving 15 times PE, worth 30 billion.
The total is 31.5 billion, corresponding to the stock price of 56 Hong Kong Dollar. The current price is 31 Hong Kong Dollar, and there is still 80% room."
Someone added, "This does not include the potential appreciation of Bubble Mary and Yunnan Agriculture. If these two companies go public, the assets of Henglong will have to be revalued."
Some people also question, "Can Henglong Capital's annualized investment income be stable at 2 billion?"
Shunxin Agriculture is a one-time use, and the floating profits of Tongce Medical, Pianzaihuang, and Bidiya have not yet been pocketed."
The poster replied, "So I gave 10 times PE instead of 20 times. Uncertainty has been taken into account."
Zhao Chen didn't read those reports.
He was sitting on the sofa at home, with a notebook spread out in front of him, with a few lines written on it--
Tongce Medical 4.99%, cost 44.97;
Pianzaihuang 2.65%, cost 93.56;
Bidiya 2.38%, cost 38.5;
Shanxi Fenjiu and Wuliangye have not opened positions yet, waiting for Q3 Report to come out.
Su Wantang came over with two cups of tea, handed him one, and sat down next to him.
"When the stock price is 33.88, your worth exceeds 12 billion Hong Kong Dollar."
Su Wantang's voice was very soft, "The media has started calling you a 'billionaire'."
Zhao Chen picked up the teacup and took a sip. "That's the valuation given by the market, not my money."
Su Wantang looked at him. "What if the market knew about your position in US Stocks?"
Zhao Chen put down the tea cup. "They won't know for the time being. Era Vanguard's matter has nothing to do with Henglong.
Currently, the only person who knows my identity is Elon Musk, and he has no reason to leak it."
Su Wantang was silent for a while. "Your worth today, if you include Era Vanguard's assets, is far more than tens of billions."
Zhao Chen leaned on the sofa and looked at the ceiling.
"Those are the money of the future. Tesla's 16.6 million shares and more than 4% of SpaceX's shares have not yet been cashed out.
Wait until Tesla rises to 1000 US Dollar, wait until SpaceX goes public, and we will talk about it then."
Zhao Chen thought to himself that by that time, he should have become the richest man in the world!