Zhejiang Longsheng: Dye Leader Or Real Estate Investment "Master"?

Recently, the A share market is basically in a state of stalemate. Under such a market, the popular stocks seem to have cleared a lot.

When we mention hot stocks, how many people will sum up the follow-up market of hot stocks? In other words, when are the stocks that just stepped on the draught, and when will they be profitable?

Recently, because of the delay in reply to the exchange inquiry, suddenly the intraday limit. Zhejiang Longsheng Once again, we can get into the field of vision.

This concept stocks, which had suddenly jumped because of the rising price of dyes, has just released a reply of up to 54 pages. Surprise or loss? Let's take a look together and summarize the popular investment factors.

Flashover caused by delayed recovery

K-line map of Zhejiang Longsheng

As you can see from the chart, the position of the cursor is on Wednesday, June 12th, and suddenly the stock price has plummeted.

At the same time, after the data showed that the spanaction volume of nearly 5 billion yuan, after the limit of market value of 48 billion 572 million yuan, compared with the previous day's closing price, the market value has been reduced by more than 5 billion yuan.

Further checking the data, Shanghai shares sold more than 200 million yuan on the same day.

It can be seen that on the day of the limit, institutional capital is indeed a big retreat.

Why is it suddenly flashing?

Because the exchange sent a letter of inquiry to the year of 2018, which required the reasons for the substantial increase in operating income and net profit, and the reason why the gross margin was higher than the average level of the same industry. Zhejiang Longsheng said at the time that in view of the larger number of matters involved in the inquiry letter, the reply would be postponed. After the completion of the related work, the reply to the inquiry letter will be completed before June 14, 2019 and timely disclosure.

The exchange has been asking questions about listed companies, which has been common in recent two years.

In the past few years, regulation was not so strict, and people seldom saw inquiries on exchanges.

Moreover, once the performance is worthy of deliberation, or other questions, the exchange is always actively asking questions, which is, in a sense, protecting the small and medium investors.

However, for the listed companies themselves, they were questioned and questioned, and they chose the postponed reply. Therefore, in such a situation, it is reasonable for the organization to leave the field in a short time.

Share prices have long been down.

In fact, if you carefully observe the trend of the line, you will find that, before the flash crash, the stock price chart of Zhejiang Longsheng has shown a weak trend, or rather, it is the gradual restoration after the boom.

As the industry leader of dyestuff, the industry itself is not a hot industry, even at today's closing price, it is less than 10 times the price earnings ratio.

For the stock price ratio of 100 times earnings, the 10 times price earnings ratio, apart from the fact that it has not been overestimated, shows that the development of its own industry has no special expectations. It is almost equivalent to a stable cyclical industry.

This is the dye industry. After the explosion in Xiangshui, it has become the most profitable industry. On the one hand, it is the reduction of dye products supply. On the other hand, it is for the entire chemical industry, to some extent, it will be faced with new inspections and capacity reduction due to safety problems. All of these have provided more advantages to the already leading industry leaders, or, in other words, many competitors have been reduced in disguise.

At the same time, the price of dye is rising.

Thus, under the multiple expectations, Zhejiang Longsheng opened the way of Bull Stock, including the same period. Intercontinental stock as well as anoky During this period of time, they came out of a strong position.

K-line diagram of intercontinental shares

With the easy price doubling of short-term prices, the selling pressure caused by excessive profit making is huge, and the high volume after that is not a good thing.

After the stock price began to fall, before the flash crash, the dye stocks represented by Zhejiang Longsheng were basically over 40% from the high level. The flash crash was due to the delayed reply, which made people worry that there was no unknown ray.

Unique investment vision?

As mentioned earlier, in fact, the exchange is not very sharp about the inquiry of Zhejiang Longsheng whole. At the same time, the response of Zhejiang Longsheng at that time was to reply before June 14th, and then did reply on schedule.

Not only did I reply, but there seemed to be some bright spots.

For example, the whole reply is up to 54 pages, but from this page, it seems to be postponed.

In addition, for investment projects, Zhejiang Longsheng invested in many well-known companies, such as Drug Ming and Kang De , drops, Ningde Era And other well known enterprises, including dripping trip, happy twist, B station, headlines and so on, which seems to have great potential for development.

Although the amount of equity investment is not very much, but from a side view, Zhejiang Longsheng's investment vision is quite poisonous.

And whenever we mention investment in China, we have to mention real estate investment. As an excellent investment company in Zhejiang, real estate investment is also among them. Moreover, its investment in real estate is also very comprehensive, not only including shops, office buildings, housing, factories, etc., but also invested in garage, the main investment area layout in Shanghai.

From these investment point of view, at present, there are good expectations. Of course, the return on investment is only a sideline after all. When measuring the most traditional Chinese medicine of a listed company, what is the main business of Zhejiang Longsheng?

Is the gross profit margin of the main industry too high?

As the leader of dyestuff industry, the strength of its main business is beyond doubt.

If we have to look at the problem from the main business, maybe there are two problems. First, the gross profit margin is really too high, but the pressure on the stock market is increasing year by year.

Main camp

From this chart, we can see that the gross profit margin of dye has exceeded 47% in its main camp, while the anoits of the same dye, less than 30%, has a 41% share of intercontinental stock, and the gross profit margin of Zhejiang Longsheng is far above the average of the industry.

Of course, if it is the premium generated by the faucet, it will not be illogical, but the high gross margin will eventually be a hidden danger in the future. After all, if the real competition is not fearless, the only industry that will be labeled as "luxury" is similar to Moutai liquor.

Another thing to note is inventory.

Zhejiang Longsheng inventory status

As you can see from the above picture, the annual report in 2018 has reached about 23000000000 of the inventory. If you look carefully, it will find that its inventory status is increasing year by year, and the resulting inventory turnover rate is very low.

Inventory of intercontinental shares

And what is the concept of about 23000000000 of inventory?

In contrast to the previously mentioned shares of intercontinental shares, in the end of 2018, only 1 billion, anoit less, and 2018 annual report only about 300 million, so we can see that inventory is not an order of magnitude.

How does Zhejiang Longsheng store so much stock?

In the clarification at the end of May, the company made it clear that the real estate project accounted for about 18000000000, and the dyestuff was about about 5000000000. If the inventory turnover rate was recalculated according to about 5000000000, then the company in the dye industry was basically the same.

That is to say, the real estate investment mentioned above is the root of inventory.

According to traditional thinking, these real estate projects in Shanghai do not seem to mention losses or normal.

But the other side of the coin lies in the fact that as a leading dye enterprise, the surplus funds do not study the main business, but are invested in the real estate army, is it not sad?

epilogue

According to the initial inquiry, Zhejiang Longsheng delayed the reply, but it did not drag on for too long. The reply was still more detailed, and it was 54 pages long and full of investment.

However, as a dye leading enterprise, it seems that people do not feel the same in the main business.

Maybe this is one of the reasons why the trend is still not recovered.

Another investor needs to be aware of the logic of the price increase of dyes under the promotion of special events. If so, how much share price of the listed company has gone up?