Category: Money tips Release Date: 2006-04-29
Meili (000,815 market, information, advice, and more) has announced the company's share-trading reform program. Program content is circulating shares for every 10 shares of non-tradable shareholders will receive 2.8 shares as payment of non-tradable shares on the price of the right of access to the circulation, while the large shareholder has been added lock-up period of 24 months and promised to lock-up period within one year after the end of reduction of the price of not less than 5.80 yuan.
From the program itself, 10 to send 2.8 program has been announced in the share reform program in the lower-middle level, but relative to the non-tradable shares in the total share capital of only 50.76 percent, this program sent 27% of view, the program itself seems to be no problem. But we have information about the company's research found that the company released data show that three quarters of its 2005 earnings per share were 0.29 yuan, net assets per share is 4.88 yuan, 31.71 percent shareholder's equity (asset-liability ratio 68.29%). As a result, is not difficult to calculate the company's net capital gains rate is only 5.9% (0.29 yuan / 4.88 yuan), while the total return on assets is as low as 1.9%. This shows the profitability of the company's assets is quite low, assuming that bank lending rates can be as an investor the opportunity cost of capital, then the theory, the net return on equity to invest in smaller than the value of the project will lead to lost opportunities. If it is considered that this risk-free interest earnings can be achieved by words (such as the long-term bond investments), then proceeds to invest in the same capacity to the equity investment varieties (such as stock) is out of thin air to increase the risk of investors. Statements of the company's recent period of studies have shown that the company's growth is not sufficient to improve their profitability. Let us look at some of the company's financial indicators: the number of phase statements are maintained at a flow rate of a low level of about the same time, a large number of inventory at any time so that investors can also be at risk.
In accordance with the company's share reform program of reform after the stock market price should be 3.83 yuan, while the company's share reform program did not make the total share capital of the change, and therefore even in accordance with this price (for example, conducted with 10 ex 2.8 send even lower), also below the company's net assets almost 1 yuan, the company's management at this time why no one said that state-owned assets would be so lost today? On the other hand, why the management to assess the company's stock price to net assets of the following (if the case at issue, the valuation discount was issued), we believe it is management's ability to assets of the company's profitability and corporate growth of no confidence, or the company's assets in the medium and small shareholders are not aware of the story.
In our imagination, paper industry, the manufacturers take the high road of their equipment should be relatively advanced, the quality of personnel should also be relatively high, so its production efficiency and equipment utilization, etc. will not be a result of market fluctuations have much impact. But our imagination is always at odds with the company disclosed the data. Perhaps a higher level of investors and company management to understand the mystery of them.
In summary, we believe that the current share reform program, although it can be said of moderation, ran their businesses, compared with the risks facing the industry is not a much more attractive. As such, we do not recommend that investors have a net capital base line parameters are where investors should be held by reasonable and justified fight for the interests of.
