Multinational Enterprises Across The Border Epidemic Prevention Products Suspected "Hot Spots" Thickening Performance Expectations Fear Fall.

Since the outbreak of the new crown pneumonia, demand for respirators, disinfectants, protective clothing and other products has surged and supply is in short supply. Against this background, a number of enterprises urgently announced cross-border production of epidemic prevention products. Some listed companies were suspected of being "hot spots" and "speculation shares".

Shen Meng, executive director of Shen Song capital, told an associated press reporter that judging whether or not he was rubbing the hot spots depends on whether the enterprise itself has the experience of producing related products. If the enterprise did not have production experience, nor did it have supply chain demand or industrial logic, there was obvious suspicion of hot spots.

A number of enterprises were monitored and questioned.

Under the epidemic situation, many enterprises have been questioned by regulatory authorities temporarily. In February 10th, 300067.SZ announced that its wholly owned subsidiary, Yantai Anor, invested in the construction of its annual output of 10000 tons of broad-spectrum disinfectant, a single potassium hydrogen sulfate compound salt project, with an investment of 80 million yuan.

Since its listing, most of its main revenue came from dyestuff business, and suddenly announced the production of disinfectant solution, which led regulators to question. On the evening of that evening, the Shenzhen Stock Exchange issued a letter of concern to the company, asking him to explain the specific application areas of the project in the new crown pneumonia, and the main basis for the performance prediction after the project was completed, and to indicate whether there was a situation of actively catering to the market hot spot and hyping the company's share price.

In response, Anor responded that the company began planning for the new disinfectant project in anoits Chemical Co., Ltd. in Yantai in the second half of 2019, and did not have the initiative to cater to the market's hot spot and hype the stock price of the company.

In fact, it was not anoi's family that was questioned by regulators. In February 2nd, 300801.SZ showed that the products of benzalkonium chloride, sodium hypochlorite and the prepared peracetic acid could be used for environmental disinfection of the new crown virus during the epidemic prevention process. The next day, the company disclosed the announcement to increase the scope of operation and revision, and intends to add peracetic acid to the business scope.

After the announcement, Taihe technology stock in February 4th -2 6 consecutive days in three consecutive trading days, closing price rise deviation value accumulated more than 20%. In February 7th, the Shenzhen Stock Exchange issued a letter of concern asking whether it had the initiative to cater to the market's hot spot and hype the share price of the company. In February 10th, Taihe technology responded that the company's reply on the interactive platform was based on accurate facts and there was no speculation about stock prices.

"A shares in the hot spot, stock price is a common phenomenon, not during the epidemic period only." Shen Meng said, "some of the companies that are hot spots also have the characteristics of virtual capacity increase, that is, they claim to be able to produce protective products, but because there is no production line and other reasons, until the end of the epidemic, they may not produce products."

In an interview with reporters, Song Qinghui, an economist, pointed out that in fact, the requirements for production grades and plant renovation are very high, not all enterprises have corresponding qualifications. For example, some enterprises do not produce the necessary production licenses for products such as medical masks, and can only produce some epidemic prevention products which are of little use, and some even have difficulty in ensuring the basic requirements for the quality of medical materials.

"In the short term, enterprises will benefit from thickening performance at this time. However, as the epidemic prevention business is not the main business of the company, in the medium and long term, the level of performance promotion will be limited, which will affect the energy and input in the original main business." Song Qinghui said.

"Hidden worry" after emergency cross-border

Since the outbreak of the epidemic, a large number of enterprises have temporarily decided to produce epidemic prevention products. According to data from the sky eye survey, on January 1st -2 11, more than 3500 enterprises have added "mask, protective clothing, disinfectant, thermometer and medical device" in their business scope.

Among the companies that are adding new anti epidemic products, clothing and textile enterprises are turning to the production of masks and protective clothing, such as 603365.SH, 600400.SH and YOUNGOR (600177.SH). In this regard, there are also local support policies, such as Jiangsu, Yancheng City and Suqian to release the "preferential enterprise" policy, to the enterprises engaged in clothing production and other related industries to temporarily shift production protection products in the epidemic prevention and control work, and give 15% subsidies for upgrading and transformation.

In February 11th, the first batch of 100 thousand daily protective masks of red bean were successfully rolled out. The batches of products were transformed by the red bean sporting goods company of Hong Kong Group. At present, there are up to 100 thousand Nissan masks, and 5 million masks can be produced after the equipment is in place. In addition, the red bean stock also started the production of protective clothing and isolating clothing. In January 31st, the mercury home textile company received the notification from the Shanghai Municipal Commission of letters, and urgently reformed 10 protective clothing production lines, and put it into production. YOUNGOR also said in January 27th that the group's R & D team is working hard to develop new respirators for virus prevention, and will be put into production immediately after the research and development is successful.

Not only that, cars, household electrical appliances enterprises have also joined the camps and other related products production camp. BYD, SAIC GM Wuling and other auto companies announced that they will "cross boundary" production of respirators, disinfectants and other antiseptic disinfection products. On the afternoon of February 12th, GREE electric indicated that, apart from the Wuhan base, GREE had resumed work in succession and stepped up production of a series of products, such as thermometers, mask production equipment, goggles, and so on.

"Epidemic prevention products such as BYD and other large enterprises cross boundary production masks are mostly responsive to the government's call. These enterprises have workers, factories and other hard conditions." Shen Meng pointed out.

However, there are also worries behind the urgent cross-border operations of many enterprises. A person in charge of a clothing listed company who did not want to be named told the financial union reporters that the mask of the company is now in the form of production, with very little output and no sales to the market.

Shen Meng believes that after BYD and other large enterprises enter, large-scale production lines may lead to oversupply in the future. "At present, the productivity of products such as respirators, disinfectant and protective clothing is rapidly recovering, and the market demand will also return to reason. The government should have strict standards and control over the capacity of products and enterprises, and some enterprises with profit making transformation will not necessarily make the expected profits."