The stock price of Henglong climbed steadily above 100 Hong Kong Dollar after Zhao Chen made its public debut.
This number has nearly doubled compared to the surge from 40 Hong Kong Dollar to 49 Hong Kong Dollar when the annual report forecast was released last year.
The market value stands firmly near 56 billion Hong Kong Dollar, and is less than 9 points away from the 60 billion Hong Kong Dollar mark.
Liu Mingyu When printing out the day's transaction data, his finger paused on the transaction amount column--
Transactions throughout the day exceeded 300 million Hong Kong Dollar, Turnover Rate was close to 0.7%,
The power of buyers is still abundant, and there is no profit-taking after the good news runs out.
Zhao Chen is sitting in Chairman's Office of Henglong Headquarters, and outside the window is the familiar scenery of Jiangbeizui Two Rivers Confluence.
Su Wantang made him a cup of Pu'er, put the tea in his hand and did not leave, but sat down on the armrest of the sofa.
"102."
She said, there was no obvious emotional ups and downs in her tone, but Zhao Chen could tell that she was settling accounts for him.
From Henglong Group in 2016, it fell to around 5 Hong Kong Dollar.
By 2019, the stock price has stabilized at 100 Hong Kong Dollar, and the market value is approaching 60 billion Hong Kong Dollar. This road has been going for more than 3 years.
"Liu Mingyu said that Stock Exchange also responded to the letter." Zhao Chen opened the folder in front of him.
"Back."
Liu Mingyu walked in from the door, holding a copy of Stock Exchange's reply that had just been printed out.
"Hong Kong Stock Exchange Listing Committee has reviewed the supplementary materials we submitted previously and concluded that there is no further inquiry."
He placed the reply letter in front of Zhao Chen.
"Neither Stock Exchange nor Hong Kong Securities Regulatory Commission initiated formal disciplinary proceedings.
According to what we currently know, as long as the annual compensation is paid on time, we will not receive any further inquiries.
They focused on verifying Independent Oversight System, which was signed by two Independent Director, Xu Yong and Sun Zhengping.
Confirm that the annual compensation of 200 million Hong Kong Dollar will not be interfered by Major Shareholder.
The person from the sales department said on the phone - 'We really don't have this kind of volume here.'"
"This is considered a temporary relief."
Chen Xi walked in from the office next door, holding a laptop in his hand.
"Stock Exchange has their own scale for measuring regulatory risk,
Usually in a voluntary commitment violation case, it would be considered more severe if executive compensation or concurrent employment restrictions can be written into the disciplinary statement.
We directly stuffed 200 million Hong Kong Dollar into the announcement, which fundamentally raised the expectations of small and medium investors.
If they issue a harshly worded inquiry letter at this time, it seems like they are suppressing a punishment plan that they do not dare to introduce."
Zhao Chen scanned the reply letter from beginning to end and put it on the table.
"What about the stock price? What does the market think?"
"The market has already incorporated this compensation into the valuation Model."
Chen Xi opened the laptop, and on the screen was a chart of Henglong Group's stock price trends over the past few months.
Hong Kong Dollar has been going up from over 40 at the beginning of the year. Although there were several small corrections in the middle, it found support near the 50-day line every time.
"Today's closing price was 102, and the intraday high was 103. Buy
The main force of Fang is the Hong Kong Stocks pass product of several large-scale domestic public offerings, and there are also two foreign long-term funds that continue to attract funds.
Judging from the analysis of after-hours seats, sellers are very scattered.
The main reason is that retail investors who were previously trapped in the 70-80 range are taking profits, and institutions have no signs of reducing their positions."
"The reason the institutions didn't run away was because they saw that Henglong's asset structure had completely changed."
Zhao Chen picked up the teacup and took a sip.
"Real Estate Sector now only accounts for less than 20% of the total assets, and the investment sector accounts for more than 80%.
Henglong is no longer a real estate company, the market is re-pricing."
"Yes." Chen Xi turned the screen to Zhao Chen,
"We did a teardown of Henglong's net worth Model.
Book net assets of 14.3 billion, plus Five A-shares's floating profit of approximately 3.8 billion,
In addition, after Bubble Mary is launched, Fair Value will release about billions of people RMB--
Adding these three items alone, the net assets are close to 23 billion RMB, equivalent to more than 40 Hong Kong Dollar net assets per share.
The stock price of 100 Hong Kong Dollar corresponds to a price-to-book ratio of approximately 2.5 times. For an investment holding company,
Not only is this valuation not high, it even comes with a discount."
"When will the listing of Bubble Mary be officially announced?"
"Wang An has received the hearing approval letter from Hong Kong Stock Exchange,
The issuance range is set at 31.5 to 38.5 Hong Kong Dollar, and it is expected to be listed in mid-December."
Zhang Qingxue opened the door and came in, holding a Bubble Mart listing schedule in his hand.
"The 31.2% shares held by Henglong are calculated based on the mid-point of the issuance range 35 Hong Kong Dollar.
The corresponding market value is approximately 11 billion Hong Kong Dollar, which is equivalent to approximately 9.7 billion people RMB.
This part of the assets is currently measured according to the cost method on Henglong's report, with a book value of only 650 million.
Once listed, the difference released by Fair Value will directly increase the net assets of Henglong."
"And Green Energy Technology." Chen Xi added,
"Zhou Bingcheng over there Series C Financing has been finalized, with a pre-money valuation of 5 billion US Dollar,
The 32% stake held by Hang Lung corresponds to a fair value of approximately US$1.6 billion, equivalent to approximately 11 billion yuan.
This part is also measured according to the cost method on the statement, and the book value is less than 200 million.
After the release of this piece of Fair Value, it will be even more amazing than Bubble Mary."
"In other words, only the two pieces Bubble Mary and Green Energy Technology, Unlisted Equity,
It hides the Fair Value of more than 20 billion people RMB."
Zhao Chen Put the teacup down,
"The current stock price is only 100 Hong Kong Dollar, the market value is less than 56 billion Hong Kong Dollar, and the corresponding person RMB is less than 50 billion."
"Yes." Chen Xi closed the laptop,
"So I say 100 Hong Kong Dollar is not expensive.
After Bubble Mary is officially listed and the valuation of Green Energy Technology Series C is fully digested by the market,
There is still a lot of room for revaluation of Henglong's net assets.
Broker Hong Kong Stocks Strategy Team is already paying attention to us,
The target price given in yesterday's report for Huatai is 115 Hong Kong Dollar, and for China International Capital Corporation it is 120 Hong Kong Dollar."
"Where is Independent Economist?" Zhao Chen asked.
"Wu Hongyuan Teacher Wu posted an article in an internal seminar this morning,
I didn't mention Henglong's name, but there was a paragraph that was obviously talking about us."
Chen Xi pulled out the screenshot on the phone,
"He said--'When a company's Major Shareholder is willing to use his personal net worth to bear quantitative compensation for breach of promise,
The company's governance level has been upgraded from compliance-driven to credit-driven.
The valuation premium that the market gives to such companies will usually be gradually reflected within 3 to 6 months after the announcement.'
His timeline matches ours perfectly."
Su Wantang took away the herbal tea in front of Zhao Chen and replaced it with a hot cup.
She didn't speak while doing these things, but her movements were slower than usual.
Zhao Chen leaned on the back of the chair, his eyes falling on the water where Two Rivers met outside the window.
"Liu Mingyu."
"Here."
"Prepare the next announcement. The content is just one--
Henglong Group Controlling Shareholder The remaining Principal and Interest of the pledge financing is expected to be fully repaid in advance within the year.
The specific timetable will be added after confirmation from Lawyer Lin."
Liu Mingyu was stunned for a moment, and then quickly wrote down the key points in his notebook.
He knew the weight of this sentence all too well - it was not a promise of compensation, but a promise of repayment.
The price is not the price of 200 million Hong Kong Dollar per year, but the complete lifting of pledges and returning the Henglong stock to a completely clean state.
Once this announcement is issued, the market's valuation of Henglong will be revalued again.
"Zhao Zong, once this news is released, the stock price will most likely exceed 110." Chen Xi said.
"Then wait until it breaks through 110."
Zhao Chen took the rain outside the window into his eyes, picked up the newly brewed Pu'er and took a sip.