The closing announcement of Stock Exchange was posted on the HKEXnews platform on time after the market closed that day.
Liu Mingyu did not send any modifying title this time. He just packaged and uploaded a scan of the original reply letter and a brief description of the situation.
The announcement number happened to be the 58th one that day, and it was as quiet as a stone thrown into a deep pool in the dense Listed Company information flow.
But the market heard the splash.
Early the next morning, Huatai Securities Hong Kong Stocks Strategy Team took the lead in sending an update report with only one line in the title -
"Henglong Group: Regulatory Hurdle has passed, and the valuation recast has begun."
The core argument of the report is simple:
Stock Exchange's conclusion of "warning but not condemnation" means that Henglong's biggest policy risk in the past three quarters has been eliminated.
Major Shareholder's commitment to repay in advance has further reduced the market's pricing of pledge default risks.
The new target price given by Huatai is 118 Hong Kong Dollar.
China International Capital Corporation followed closely and issued a more detailed in-depth research report with a more direct title--
"Henglong Group: The transformation from real estate to investment has been recognized by regulators, and the target price has been raised to 122 Hong Kong Dollar".
The analyst of China International Capital Corporation spent three full pages dissecting the net asset structure of Henglong.
We recalculated the Fair Value release of Green Energy Technology Series C valuation, the market value contribution of Bubble Mary after its listing, and the latest floating profit of the Five A-shares position.
The conclusion is that the price-to-book ratio corresponding to the current stock price of Henglong 140 Hong Kong Dollar is still less than 2 times.
The average price-to-book ratio of similar investment holding companies in Hong Kong Stocks is between 2.5 and 3 times.
A brief but very important sentence was added at the end of the report--
"Stock Exchange's case closure notice is equivalent to stamping an official seal on Henglong's asset structure transformation."
When the abstracts of the two research reports popped up on Bloomberg Terminal almost at the same time,
Chen Xi is doing morning review in Henglong Capital's office.
She compared the two reports from beginning to end and curled her mouth slightly.
She recalled that when the annual report forecast was released last year, only a few brokerages in the market dared to give a "buy" rating, and the target price was still below 50 Hong Kong Dollar.
At that time, the stock price of Henglong had just started from 40 Hong Kong Dollar, and everyone was questioning whether a real estate company could successfully transform into an investment holding platform.
Now, the target prices given by Huatai and China International Capital Corporation have already stood above 110 Hong Kong Dollar.
The stock price of Henglong has more than doubled since the beginning of the year.
The logic of the market has changed - the official seal of supervision is the last threshold of trust.
After passing through, those institutional funds that were still waiting on the sidelines will begin to re-evaluate the valuation framework of Henglong.
Call Auction ended, and the stock price of Henglong jumped up and opened at 111.5 Hong Kong Dollar, which was a little higher than yesterday's closing price of 110.2 Hong Kong Dollar.
The transaction volume in the first half hour was stable at around 1 billion Hong Kong Dollar. The buyer's power was moderate but sustained, and there was no concentrated selling after the good news ran out.
Just after ten o'clock, a buy order for more than 300,000 shares was placed at the position of 112 Hong Kong Dollar.
Push the stock price steadily towards the target price given by the brokerage.
"China International Capital Corporation has included green energy, but not yet Yunnan Agriculture."
Zhao Chen put down the research report,
"Yunnan Agriculture's listing application has been submitted to the meeting. If it goes through successfully,
Based on the valuation range of 20 billion to 28 billion,
The 20% equity held by Henglong corresponds to 4.0 to 5.6 billion people RMB.
This part is currently not reflected in any brokerage's valuation Model."
"That means that even according to the target price of China International Capital Corporation 122 Hong Kong Dollar, Henglong is still undervalued."
Zhang Qingxue is sitting across the conference table, with the Bubble Mart listing schedule and Green Energy Technology Series C delivery documents spread out in front of him.
"Forget it after Bubble Mary is released and Fair Value is released,
They forgot about the valuation of Green Energy Series C, but Yunnan Agriculture IPO and Green Energy IPO.
Information asymmetry itself is Henglong's current biggest valuation safety cushion."
In the afternoon, the stock price of Henglong consolidated within a narrow range around 112 Hong Kong Dollar, while Trading Volume gradually shrank. Buyers no longer chased higher, and sellers did not rush out in large numbers.
The market reaches some kind of short-lived equilibrium at this position--
Henglong above 110 Hong Kong Dollar is no longer a discount target suppressed by regulatory risks.
It is a value stock that is waiting for the release of the next wave of catalysts (Bubble Mary listing, green energy Series C valuation confirmation).
At half past two, there was another foreign investment bank--
Morgan Stanley's Hong Kong Stocks team issued a brief report without giving a new target price.
However, the rating of Henglong was raised from "hold" to "buy".
The reason is that "regulatory uncertainty has been basically eliminated and there is sufficient room for asset revaluation."
Immediately afterwards, Hong Kong Stocks Strategy Team of UBS also sent a brief review of only two pages.
The report does not break down the details of net assets like Huatai and China International Capital Corporation, but uses a more straightforward title--
"Henglong Group: A transparency premium is taking shape".
Analysts at UBS wrote in the report,
The level of transparency demonstrated by Henglong in the regulatory review of Hong Kong Stock Exchange is significantly reducing its governance risk discount.
They believe that the current transparency premium of Henglong is far from being fully factored into the stock price.
Because most investors have not fully incorporated the asset synergies of Era Vanguard and Henglong into the valuation framework.
Chen Ke turned around and picked up the phone and saw the brief comment sent by Chen Xi--
"Of the four research reports today, three raised their target prices or ratings.
The stock price of Henglong has gone from 40 Hong Kong Dollar at the beginning of the year to 112 Hong Kong Dollar today. Behind this is the re-pricing of our asset structure by the entire market.
It's not hype, it's value discovery driven by Fundamentals."
After reading it, he wrote back to Chen Xi:
"Let Liu Mingyu sort out the summaries of these research reports and send them to all members of Board of Directors.
Tell them that we have passed the supervision level."
Su Wantang stood next to him, his eyes also falling on the golden river outside the window.
She was wearing a light gray cardigan, and her hair was still tied back casually.
From New York to Shan City, from Tesla to Henglong,
Together with the people in this office, she endured the days and nights of being hunted by the Short-Selling Alliance, questioned by the SEC, and scrutinized by regulators.
At this moment, she was standing next to him, as always, not saying too much,
Just looking at the river dyed by the sunset, I softly uttered:
"What about the next level?"
Zhao Chen turned around, picked up the slightly cold cup of Pu'er, took a sip, and then placed the cup on the windowsill.
"The next level is the listing of the stock Bubble Mary."
His voice was not high, but every word fell on the river breeze outside the window,
"Wang An has set the launch date on December 11th, which is less than a month away.
Henglong holds 31.2% of the shares--after Bubble Mary was listed,
The holdings of this part of Fair Value will directly jump from the book value of 650 million to more than 10 billion Hong Kong Dollar.
By that time, Henglong's net worth will not be what it is now."
Outside the window, the Jiangbeizui night was finally completely enveloped,
The lights of Two Rivers Confluence light up in rows.
Henglong's stock price closed near 112 Hong Kong Dollar, and its market value is firmly above 60 billion Hong Kong Dollar.