The Five Biggest "Strength" Points Of Gem In 2011

As a new born capital market in China, the gem has received too much attention from all sides.

Since its birth, China's GEM has seen such phenomena as high price earnings ratio issuance, high proportion of recruitment, performance change, and concentrated resignation of executives.

Today, the launch of gem is more than a year, and it is developing in the expected direction.

However, in this process, there will inevitably be some problems.

However, the existence of these problems can not hinder the development of the growth enterprise market.

And the redemption of some problems needs to be realized through the improvement and innovation of the system.

Look at 1

Break: effective suppression of "three high"

In January 7th, the GEM market ushered in the new "five sons": Anju Bao, Tianli environmental protection, Hengtai EPU, Zhendong pharmaceutical and new research stock.

So far, the total number of GEM stocks has reached 158.

Driven by the pformation of market style, anjubao dropped 2.65% on the day of listing.

Second half of the gem appeared again on the first day of breakage.

Just yesterday, the five new shares listed on the gem last Friday, after the first break of Anju Bao, continued to widen the gap with the issue price. Zhendong pharmaceutical also joined the break down army, a drop of 4.64%.

Following the break of the first day of the listing of GEM stocks, oak shares, Kangzhi pharmaceutical, new Daxin material, and League of nations aquatic products, the reason for the first break of Anju Bao is the first day.

Shang Fulin, chairman of the China Securities Regulatory Commission (CSRC), said at the fifteenth China capital market forum that the first day of the launch of the gem stock market was broken. This shows that the market constraint mechanism is being strengthened step by step, playing a positive role in restraining the "three high" of the growth enterprise market.

"Breaking is the correction of the market."

Li Daxiao, director of the British Institute of big ticket, told reporters.

He explained that whether the gem or small and medium-sized boards, there are "three high" phenomenon, which is a more obvious fact in the market.

"The reason for this phenomenon is that many people feel that the new stocks are better than the old ones and have more opportunities, which will indirectly contribute to the three highs".

Anjubao issue price is 49 yuan / share, corresponding to the P / E ratio 69.01 times.

Insiders pointed out that since the fourth quarter of last year, the issuance of new shares has become increasingly fierce. With the strong rebound of the stock market, the new camp has not broken down. Now, under the influence of monetary tightening, whether the tight market environment can support the high price issue in the first tier market still needs to be observed.

High pricing is regarded as "original sin" by most of the market participants.

On the one hand, the high price earnings ratio corresponding to the issue price is several times the price earnings ratio of the main board and the small and medium board in the same period. For example, the highest price earnings ratio of the first GEM listed companies is A, which is 81.67 times earnings ratio far higher than the average price earnings ratio of A shares less than that time.

In addition, stocks with a price earnings ratio of more than 100 times have also emerged.

On the 7 day of the new research stock, the issue price earnings ratio is 150.82 times, creating a new high price earnings ratio of the gem IPO.

This has shocked the whole market again.

On the other hand, the hidden risk of high pricing has deterred many investors.

Wu Xiaoqiu, assistant director of Renmin University of China and director of the Institute of Finance and securities, believes that the high P / E ratio of the growth enterprise market is not sustainable. Behind it is a dreamlike expectation of investors on the growth enterprise market. Most of this dream period is expected to end, so the risk is great.

In fact, in the last batch of GEM stocks, the first day gains of Ketai power and Ruiling share were only 1.95% and 3.12%, and the trend of new shares' performance has been very clear.

According to the insiders, the issue price of GEM listed companies is basically at a higher level, whether they have high growth or not.

Some mediocre companies, whose higher pricing has overdrawn their future growth, is inevitable if the general trend weakens.

At the same time, the breakup of GEM stocks and the return of valuation is a normal phenomenon, indicating that short-term funds are cooling down the speculation of GEM stocks.

For enterprises, the high earnings ratio overdraws the performance of enterprises in the future time, and is not conducive to the healthy development of enterprises. For investment institutions, it is also hoped that the invested enterprises will have a reasonable price earnings ratio and a good growth foundation, so as to ensure that investment returns can be safely snooed.

With the increasing number of listed companies on GEM, the scarcity of listed resources will be alleviated, and the overvalued value of enterprises will gradually return to rationality.

Look at 2

Lifting the ban: there is no need to talk about "solution".

With the advent of a new round of reduction in gem, many shareholders of the lifting of the ban have been active in the block trading platform and the two tier market.

The data show that in 2010, there were 1 billion 561 million shares of GEM companies with a total market value of more than 50 billion yuan, and 2 billion 450 million of the gem in 2011, with a market value exceeding 100 billion yuan.

The industry believes that this year's gem ban pressure distribution is relatively uniform, and not like last year focused on release in November.

At present, the performance differentiation of gem is more obvious. The split trend of individual stocks will become a probability event. Companies with poor performance and growth will be more vulnerable to the reduction of original shareholders, and share prices will also be affected. Investors must keep their eyes open when choosing gem.

However, for the lifting of the ban, investors do not need to talk about the "change" of the growth enterprise market, abandoning the investment opportunities at the end of the year. The disclosure of the annual report will start next month. The price of the new issue of IPO will be higher and the net assets per share of the company will be thickened.

Due to the high frequency of GEM Listing in 2010, a large number of initial shares of the more than 100 enterprises listed last year will be lifted in 2011.

However, since last year, the gem has maintained a uniform listing, so the lifting of the ban pressure will be more dispersed than the 2010 release at the end of the year.

Data show that starting in January 10th of this year, Shanghai Kai Bao, Jiuzhou electric, Netac technology, Hui Tian glue, Mei Tai no, and other companies will be lifted.

Compared with other months, the number of lifted shares in January was the largest, reaching 321 million shares, with a market value of 13 billion 134 million yuan. In September, the number of lifted shares was 298 million shares, ranking second, and the market value of 14 billion 548 million yuan. In May, the number of shares lifted was 279 million shares, and the market value was as high as 17 billion 995 million yuan.

Although the "restriction order" is in place, the SFC requires GEM companies to disclose the trend of executive shareholding in detail, but the executives and their family members of GEM companies are still the main force of cash flow.

Different from the previous, the recent GEM board "Dong Jian Gao" stock changes show that the executives themselves reduced significantly.

Last year 12

On 27 May -30, the gem "Dong Gao Gao" and its related personnel were reduced by 24, and 19 were for executives themselves.

In 2010, the lifting of the growth enterprise market, the emergence of the situation of the decline and increase.

In November 1st, the first batch of GEM companies were lifted, and the gem index rose by 4%.

After a short period of adjustment, it has moved upward and has been developing rapidly.

In December, the 20 day hit a record high of 1239.6 points, followed by an adjustment.

In addition, although some stocks were sold, the stock price was not obviously under pressure.

In the middle of December, the stock price of Huayi Brothers, such as Dong Jiangao and the most relevant personnel, rose slightly.

Li Daxiao said the lifting of the ban would not have an excessive impact on the market.

"If the original shareholders are superior, the means of lifting the ban are more subtle, and there will be no panic in the market."

There is no need to be overly pessimistic about the investment of Qin Bai Ling.

Historical experience shows that lifting the ban has never been a decisive and crucial factor in the medium-term operation of the A share market, and the annual report reveals that the gem will be the hub of high delivery and equity swap.

In addition, there are market participants said that the current performance of gem differentiation is more obvious, the split trend of stocks will become a probability event.

In addition, the pressure of centralized release of GEM has been reduced, and the pressure of lifting the ban in 2011 has been dispersed.

In the future, companies with better growth will gain more capital, and companies with poor performance and growth will be more vulnerable to the reduction of original shareholders and share prices will be affected.

Look at 3

Performance: most happy little worries

"Two high six new", that is, high growth, high technology content, new economy (310358, fund bar), new services, new agriculture, new materials, new energy and new business mode, this is the orientation of gem.

Now, over a year has passed. What is the result of the gem?

From the situation of GEM companies that have announced performance forecasts, the PV industry has been eye-catching last year.

Thanks to the "200MW solar battery project" and the rapid recovery of the photovoltaic industry after the financial crisis, sunflower (300111, stock bar) said it expects net profit in 2010 to be 200 million yuan -25000 million yuan, an increase of 94%-142% compared with the same period last year. Dongfang Risheng expects net profit of about 195 million yuan -24000 million yuan in January 1, 2010 -2010 and 67.92%-106.67% growth in January 1, 2010.

New Daxin material said that this year the photovoltaic industry maintained a good momentum of development, led the company's main product silicon wafer cutting edge sales volume increased significantly, Forecast Ltd annual revenue in 2010 increased by 80-130% compared with 2009, net profit increased by 40-90% compared with 2009.

In addition, with the new energy sector, the sun lighting and recycling industry also forecast that the net profit in 2010 could increase year by year.

According to the photoelectricity, the net profit attributable to shareholders of Listed Companies in January 1, 2010 -2010 increased by 60%-70% compared with the same period last year, with a profit of 134 million yuan and -14400 yuan. In the case of the rapid development of automobile, solar energy, wind power, LED and high-speed railway in the company's products, the company expects that the profits of the fourth quarter of the year will maintain a strong growth, and the net profit of the whole year will increase by 65%-90% compared with the previous year, and the earnings per share will be about 1.27 yuan and -1.46 yuan, respectively.

Another highlight is in the field of biomedicine.

Such as Xinghe biologically, it is estimated that the net profit attributable to shareholders of Listed Companies in January 1, 2010 -2010 will be 40 million yuan to 45 million yuan, up 97% to 121% compared to the same period last year. Shanghai Kai Bao expects that the net profit attributable to the common shareholders of the company in December 31st will be 70% to 110% over the previous year.

Of course, some people are happy and sad.

In the GEM companies that released the performance forecast, Bao de shares predicted that net profit in 2010 would be reduced by 20%-60% compared with the same period last year. The decline in Nandu's power supply performance range was 40%-60%, while Netac technology said that the cumulative net profit from the beginning of 2010 to the end of the year would be "down sharply".

Analysts said that to explore the opportunities for gem annual reports, we should carefully select investment targets and give priority to selecting listed companies that are benefited from the newly supported industries supported by the state, such as photovoltaic industry, biopharmaceutical industry, new generation mobile communication technology and the Internet of things. These industries are in the business cycle. They have unique technological advantages or strong sales networks. At the same time, some listed companies with high capital adequacy rates deserve our attention.

The analysts also said that the early disclosure of the annual reports of listed companies often perform better, and the market has the greatest probability of full speculation. These companies have always been small and medium capitalization stocks.

Investors should pay attention to, first of all, the capital reserve fund per share and the higher undistributed profit per share, and the strong capital surplus and undistributed profit will directly determine whether the high delivery can be turned into reality. Secondly, the growth of the quarterly earnings is also a key factor. At the present stage, the companies that are expected to increase significantly in the annual report will lay a solid foundation for the high delivery; again, in the stock with high expectations, the stock price will exceed 100 yuan, and the excessive share price will make the stock pactions generally light and low in activity. For these stocks, the willingness to send shares through the high price and low share price is very strong.

Look at 4

Equity incentive: to give up "money" before leaving "talent"

"Equity incentive is a magic weapon for high-tech companies and start-ups to attract talents and encourage employees. The scale of GEM companies is relatively small, the market competition is more intense, and the product updates are faster. Under such circumstances, our company can win the competition, and it is very important to design the equity incentive system, and it is more convenient and efficient. We need to design the characteristics of GEM companies in the equity incentive system, and also improve and innovate the system in this respect."

Zhou Ming, deputy general manager of the Shenzhen stock exchange, said recently.

Equity incentive is called "gold handcuffs", which aims to encourage business executives and core staff to create greater value for the enterprise.

On the evening of December 29, 2010, the board of directors of gem and Hon Kang issued a notice of approval.

In fact, since the first draft of equity incentive bill was launched in May 29, 2010, the equity incentive process of GEM listed companies has accelerated significantly. Only in 2010 11 and December, 13 listed companies announced the plan of equity incentive plan.

An analyst at Zhongyuan Securities said that the GEM listed companies launched collective equity incentive plan to stabilize the company's core team and backbone technology and business personnel, so as to promote the company's performance development.

Ping An Securities analyst said that although the equity incentive plan would dilute the earnings per share to a certain extent, it would help to enhance investor confidence.

Another analyst said that for GEM companies, there is another layer of meaning, that is, the establishment and development of GEM companies rely on core technical personnel to complete. After the lifting of the ban for one year, the GEM companies launched equity incentive plans in order to retain core talents.

Wu Xiaoqiu believes that China's gem should be an incentive mechanism for innovation.

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Dong Dengxin, a professor at the financial and Securities Research Institute of Wuhan University of Science and Technology, believes that the gem is mostly owned by family businesses and private enterprises. After listing, the first round of fortune has been fulfilled, and some speculative executives have the desire to leave the company.

In addition, in the rapid expansion of business, most of these enterprises are faced with the difficult problem of human resources.

He believes that if we want to solve this problem, we must make equity incentive to play a long-term mechanism, and we should extend the assessment period of equity incentive.

However, insiders also said that the equity incentive plan is a double-edged sword. On the one hand, it can promote the growth of the company's performance and stimulate the growth of the target return. On the other hand, if the plan is improper, it may lead to internal strife, and in the future or up to 6 of the exercise period, there are still many variables, such as the "upside down" of the share price and the exercise price, and the awkward halting of the right day. This precedent is not new on the motherboard, so investors must be cautious.

Look at 5

Delisting: 2011 striving to solve problems

The growth enterprise market is a newborn in China's capital market.

Shang Fulin, chairman of the China Securities Regulatory Commission, said recently that the current and future period will start with four aspects: strengthening market positioning, improving system rules, improving internal restraint mechanisms, and increasing supervision. We should increase the reform and innovation of gem, study and formulate refinancing methods for listed companies on GEM, and actively explore the delisting system of GEM companies.

Zhou Ming, deputy general manager of the Shenzhen Stock Exchange, also said that in the aspect of institutional innovation, we should set up a suitable small board quick refinancing system as soon as possible.

"At present, there is a serious over raising of the gem, the threshold of refinancing must be stricter than that of the main board and small and medium-sized boards, and it should also be well monitored for the use of funds before, especially for the use of over raised funds."

A broker dealer in Shenzhen said to reporters.

This person said that the refinancing of listed companies as a normal means of financing in the market is a very normal thing, whether it is the main board or the gem.

However, how to make GEM companies not only be able to melt into the necessary funds, but also control the risks, is the key to the problem.

Li Daxiao said that the restoration of the refinancing function is quite normal.

"In addition to IPO, the market needs follow-up functions. The research and promulgation of the gem refinancing system is reasonable, and there is no need to overexert or not understand it."

He also said that the problem now is that the issuing price of GEM companies is relatively high, which is good for issuers, but it is not good for investors. "How to be more equitable makes the foundation of market development more solid."

The delisting system of GEM has also been concerned by all parties.

On the 8 day, Shang Fulin, chairman of the securities and Futures Commission, said at the fifteenth China capital market forum that we should actively explore the delisting system of GEM companies and give full play to the market's survival of the fittest.

This is the fourth time in 10 days that regulators have referred to the establishment of the gem delisting system.

Insiders believe that improving the delisting mechanism will become the top priority of the supervisory work in 2011.

At the time of launch, the gem promised market supervision and delisting mechanism. At the same time, many senior executives of the Shenzhen Stock Exchange put forward the need to establish a direct delisting system different from the main board. However, there is no timetable for the delisting mechanism.

Li Daxiao said that the delisting system is related to the stability and timing of the market. However, this is a matter of course, but the key is to implement it steadily.

At the same time, he also said that because of the lack of awareness of risk in venture capital board, we should study it carefully.

Wu Xiaoqiu said that the efficient delisting mechanism is one of the core rules of the gem. Without efficient delisting mechanism, the risk structure of the gem can not be established. The high risk market can not be formed. The gem will not succeed. The efficient delisting mechanism is one of the most essential differences between the gem and the main board market.

In addition, some market participants pointed out that gem as a distinctive and distinctive market shape is more important to tailor its delisting system.