Gem'S Birth Path

A few days ago, Liang Yunchao suddenly became a new rich class in China. IPO's myth of making rich was staged again.

In December 15th, his company, the company that produced dietary nutrition supplements, landed on the gem. The issue price of 110 yuan refreshed the record of the growth of the gem.

Because of this high price, if Liang Yunchao's personal shareholding amounts to 31 million 437 thousand and 883 shares, his fortune will reach 3 billion 500 million yuan.

It has also aroused people's strong concern for a while.

Even some outsiders are wondering whether Yao Ming, the spokesperson of the company, will make a big profit.

After a very nervous start in the capital market, the stock price with high price earnings and high price earnings ratio remained strong after the opening of the stock market on the first day, when the stock was opened at 156.8 yuan, closing at 146.78 yuan or 33.44%.

However, how does this private company that is not familiar to the public grow stealthily? Where does the performance of its dietary supplement come from? How can it be highly regarded by the capital market?

Where does "domestic Nutrilite" originate?

Many people don't know that there is an unknown predecessor, Zhuhai Hai Shi Long Health Food Co., Ltd.

From the sea lion to the Tang Dynasty, it is not a long road but the scenery is changeable.

The "rule of law weekend" reporter found that in April 1, 2005, the company was established with a registered capital of 1 million 300 thousand yuan, and the shareholders were the hi tech company and Wu Jingdong.

4 months after its establishment, in July 29, 2005, Hai Shi Long technology company pferred all its 90% stake in the sea to two natural shareholders (80% of the shares were pferred to Wu Jingdong, and 10% of the shares were pferred to Wu Quanxiang).

Then, 10 days later, the two natural shareholders pferred all the shares. The Guangzhou Cape company (25% stake) and the natural person Liang Shuisheng, who were 75%, were elected.

The report on the sponsorship of the first public offering issued by Liang Yunchao showed that Guangzhou was founded in June 3, 2004, with a registered capital of 500 thousand yuan and a 51% stake in Hong Kong. Tang Hui holds 49% stake.

So far, the entrepreneurial team (Liang Yunchao, the current managing director of Tang Dynasty) and the current managing director of Tang Hui, began to control the sea lions.

But surprisingly, the Liang Yunchao family business group did not stop there.

In November 6, 2006, Guangzhou's cape and Liang Shuisheng pferred all their shareholdings to BYHEALTH, which was incorporated in North Carolina in June 8, 2004 and held by Liang Yunchao.

After the pfer, Hai Shi Long became a wholly foreign-owned enterprise.

However, by January 15, 2008, after the establishment of a shadow company and multiple equity pfers, BYHEALTH, the sole shareholder of Hai Shalong, signed a share pfer agreement with Liang Yunchao and other natural persons, and pferred the shares to 1 million 300 thousand yuan.

So far, in just 14 months, he has completed the crazy pformation of "domestic capital, foreign capital and domestic capital".

The evolution of the equity seems to be intriguing.

"Of course, there are reasons for these actions.

At that time, "Hai Shi Long" changed from domestic capital to foreign capital, and it was obvious that it could get tax preferences, and then changed from foreign capital to domestic capital, which paved the way for the listing of companies.

Huaxia Securities analyst Lu Lei to "rule of law weekend" reporter analysis.

In fact, in his relevant disclosure documents, Mr Tang also spoke frankly about changing foreign capital in order to win the "tax preference".

The lawyers of the sponsors and issuers also admitted that the acquisition of the BYHEALTH2006 was not approved by the Ministry of Commerce in November.

But Zhang Mo, a lawyer and lawyer of Guangzhou Guoxin joint law firm, explained to the reporter of "rule of law weekend", "we must fulfill the information disclosure and make a good risk warning.

In addition, because the national policy is always changeable, the reasonable avoidance of tax by private enterprises does not mean that there are problems.

Reporters from the "Guoxin law firm on the company's initial public offering and the listing of lawyers in the gem report" to see that in August 1, 2008, the overall change of the sea lion dragon company, in October 15th of that year, the company renamed the "health", the shareholders are mainly the original shareholders and co entrepreneurs.

In the next two years, the reputation of "a few companies that can compete with foreign capital brands" and "domestic Nutrilite" are gradually established in the national industry.

How does Yao Ming concept stock rise?

Compared to a series of capital raising techniques before the listing of companies and shipping by boat, today's health has reached the sunny road.

At the end of July, Yao Ming became the spokesman of his image. In November 1st, the company applied for IPO.

The reporter understands that from the perspective of industrial chain, he always stands in the middle reaches, the upstream is global raw materials, and the downstream is finished product sales enterprises.

The company's main business is the research, production and sales of dietary supplements, and the business accounts for relatively large varieties of protein, vitamins, minerals, calcium and bone health, women's health and infants, children, youth health, and dozens of main raw materials and accessories are imported from more than 10 countries and regions: New Zealand, Norway, Germany, the United States, France, Japan and Thailand.

In the analysis of listing positioning, the company introduces itself.

According to Liang Yunchao's narration of the weekend of the rule of law, he has a nearly harsh raw material source audit system. It not only discriminates the differences between animals and plants in all parts of the world, observe the environmental factors for planting or raising raw materials, but also studies the effects of climate change, air and soil quality, raw material harvesting technology on raw materials, so as to select the best raw materials in the world.

He also revealed that in order to achieve better selection of raw materials, we will establish a global supply base for raw materials.

This is obviously a huge project.

"Not only means high cost, but also requires continuous supply of funds."

Liang Yunchao said.

In recent years, the achievements of health have set a steep curve.

The prospectus showed that in 2008, the market share of the company's non direct marketing sector in the domestic dietary supplement industry reached 10%, and its annual revenue and net profit increased by 78.46% and 107.79% respectively from 2007 to 2009.

In the first half of 2010, its operating income was 161 million 551 thousand and 600 yuan, which reached 78.69% in 2009. Net profit was 54 million 483 thousand and 300 yuan, which was 104.43% in 2009.

"We try to divide the upstream and the competitors with the advantage of raw materials that cannot be imitated."

Liang Yunchao is quite proud.

Today, amino acid products such as Rui, health care, Biyuan, and other health care brands are also booming, because they have their own characteristics to win in the market selection, and in the face of the homogenization of product competition in the market, the same industry follow suit, in fact, he has the intention to upgrade his slogan and concept to a differentiated development strategy, and in fact, the ultimate reality.

However, the brand strategy and good performance are not enough to form a condition of 110 yuan "IPO".

"Smell sensitive institutions and hot money" after seeing good, they deliberately magnify the concept of "taking the whole world", which is almost the usual practice of capital market.

Lu Lei made no bones about it.

Mr Tang succeeded in landing on the growth enterprise market. All the parties made a lot of money to earn 1 billion 500 million yuan (far more than 300 million of the original plan).

{page_break}

What is the future of "gem"?

Although it is a leading enterprise in the domestic dietary supplement industry, it will grow better in the future, so the market has given a high premium. However, its price earnings ratio of over 100 times has aroused strong controversy in the market.

Reporters interviewed Huatai Securities, Changjiang Securities and state Yuan Securities and many other brokerages found that some researchers or analysts were cautious about the issue price. They thought the reasonable price was between 70 yuan and 90 yuan / share.

"In 2010, the average dynamic PE of the company close to the main business was 56 times. The price earnings ratio should be between 40 and 45 times. The corresponding reasonable inquiry interval should be 65 yuan to 73.1 yuan / share. The value of the company's stock is obviously overestimated, and the absolute valuation is about 67.99 yuan / share at reasonable price."

Guotai securities analyst Li Bingyang estimates.

In addition, the more optimistic SW forecast is 93 yuan to 106 yuan, and the Oriental Securities is 81 yuan to 94.5 yuan.

But in their view, this "global" company ceiling issued a really big bubble.

"When the issuing price is too high, the valuation of the listed shares is likely to return."

Lu Lei analysis, if the stock market is too large, investors should also be alert to speculation risks.

However, there are many people who hold positive opinions. Many researchers, such as Shen Wan securities and Xingye securities, told the "rule of law weekend" reporter that the temptation of Tang Dynasty is its "high growth". China's health care products industry is expected to usher in new opportunities for development. As a leader, Tomson times health is the first beneficiary, and the high issue price is supported.

Reporters browsing the research reports of some brokerages found that the main attraction of the company to the institutions and hot money was its biological medicine industry, and the IPO of the industry has been booming since last year.

"The scale of the fund-raising of biomedicine is evident in all industries before it is released," he said. "It is evident that the price of 148 yuan per month for the small and medium-sized boards."

Zhang Yuan, a member of the China Health Care Association's health products Market Committee, analyzed the "rule of law weekend" reporter. Dietary nutrition supplements have been very popular abroad, and the global industrial output value is as high as 64 billion 700 million US dollars. "But in China, it has just started, the market potential is huge, and the market size is about 55 billion yuan."

A clear fact is that the high issue price of 110 yuan is actually the median of a number of funds.

According to the announcement, there were 206 institutions participating in the inquiry, with quotations exceeding 100 yuan (including 100 yuan) to 132 institutions.

Among them, Yi Fang Da fund has the highest quoted price, and its fund has given the highest price of 140 yuan / share.

The price submitted by China's blue chip core funds is no less than 130 yuan / share, and the more than 10 funds such as harvest are 120 yuan / share to 130 yuan / share.

Although people in the industry have been comparing the IPO with the first high priced shares of the small and medium-sized board, hPPE, the police say that it may be as fast as the latter and will soon fall into a "squeeze" way after the stock price rises. But as of the trading day before the press release, the stock is still being sought after by institutional and hot money, and its performance is increasing rapidly.

The above health care Industry Association believes that there is no need to talk about the treatment of "three high" diseases because of a strong case. "That is not a case that can solve the problem. The key is to increase production capacity and raise more than 1 billion 200 million yuan of funds."