Reader Culture 1.55 Yuan, Freezing Point Price Of The First Day Of The Stock Market Soared 19 Times, Inquiry Agencies Cut Leek Or Retail Investors Crazy Speculation?

? ? ? On the morning of July 19, the reader culture, which was issued at a "super low price" of 1.55 yuan per share, was warmly welcomed by a large number of investors on the first day of listing. After only 10 minutes of opening, it triggered two consecutive temporary stops. The largest increase in the early stock price was nearly 18 times. The temporary suspension was triggered three minutes before the afternoon closing, and the stock price exceeded 31.66 yuan / share, which was more than 19 times higher than the issue price.

Before that, the inquiry market of reader culture was not satisfactory. Not only did the offering price break a new low under the gem registration system, but the actual fund-raising amount was only 1 / 3 of the expected amount. With the actual net amount of raised funds of RMB 43.7281 million, reader culture set a record of the second lowest net amount of IPO funds raised since this century, It was only higher than the 29.7118 million yuan of Zhejiang Shibao in 2012.

This contrast has caused a lot of controversy.

"This reflects that the A-share mechanism is abnormal. The buyers enjoy a feast of low prices, retail investors are keen on playing new lottery games. The shareholders of the issuer want to be listed, and the regulators want to keep issuing continuously. The investment banks have made a lot of money, and no one sympathizes with them. As for the loss of issuers, money did not enter the real economy, it seems that no one cares Wang Jiyue, a senior investment banker, pointed out in an interview.

Low price issue is related to industry undervalue

On the first day of its listing, Duke culture opened at 13.95 yuan / share, 800% higher than the issue price of 1.55 yuan / share.

In the continuous bidding stage, the first temporary stop price of 18.14 yuan / share was touched instantly by reader culture (30% higher than the opening price for the first time). After the first temporary suspension, the reader culture triggered the second temporary suspension in a very short time (60% higher than the opening price for the first time), and the second temporary suspension price was 22.32 yuan / share. Since then, the stock price of reader culture continued to rise rapidly.

When the market opened in the afternoon, the stock price of Duke culture kept running at a high level. Three minutes before the closing, it triggered the third temporary stop, and finally closed at the price of 31.66 yuan / share, becoming the strongest new stock on the gem, with a turnover of 674 million yuan.

By the end of the day, the total market value of reader culture totaled 12.664 billion yuan, with a dynamic P / E ratio of 198.1 times. Winning the first prize can earn 15000 yuan.

However, in sharp contrast to the booming market, more than half a month ago, the reader culture encountered a different scene.

It is understood that at that time, the lead underwriter received the preliminary inquiry and quotation information of 10147 placing objects managed by 485 offline investors through the electronic platform of Shenzhen Stock Exchange, with the quotation range of 1.48 yuan / share-30.83 yuan / share, but the final determined issue price was only 1.55 yuan / share, setting a new record of the lowest issuing price of new shares registered on the gem. It is also since the gem opened in 2009, The lowest price of new shares in history, but also the second lowest price of new shares this year, second only to China Southern Power, which landed on the SME board on January 19 (the issue price was 1.40 yuan / share).

In terms of fundamental performance, although the journalism and cultural publishing industry in which reader culture is located is relatively traditional, the company's fundamentals are still quite stable.

According to the public information, reader culture is the strategic partner and content supplier of domestic major digital reading platforms, and its main business is book planning and distribution and related cultural value-added services.

From 2018 to 2020, the operating revenue of reader culture will be 319 million yuan, 397 million yuan and 408 million yuan respectively, with growth rates of 19.90%, 24.18% and 2.77%; During the same period, the net profits attributable to the owners of the parent company were 51810800 yuan, 57166700 yuan and 51551300 yuan respectively. In the first half of 2021, its revenue is expected to increase by 13.08% - 40.24%, and the net profit attributable to the parent will increase by 60.45% - 97.48% to 26 million - 32 million yuan.

Specifically, in the past three years, the sales amount of paper books of the company were 274 million yuan, 332 million yuan and 332 million yuan respectively, accounting for 85.63%, 83.63% and 81.29% of revenue respectively, which is the core business and main income source of reader culture. It is worth mentioning that the company's annual average gross profit margin of paper book business is close to 42% in recent three years.

"The paper book products produced by the company have the characteristics of high variety efficiency, sustainability, best-selling and long-term sales. Variety efficiency represents the share of code ocean created by 1% variety share, with an industry average of 1. The efficiency of various kinds of foreign books operated by the company is far higher than the industry average level, reaching 10.38. " Zhu Xiaoxiao, the company's secretary, said that reader culture is the main publishing content supplier of the mainstream e-book reading platforms such as Amazon, dangdang.com, palm reading and reading. It has also signed up for e-book copyrights with significant market influence, including the three body (Trilogy) and Naruto series.

The 21st century economic reporter noted that the "low price" issue may be due to the low average valuation of its industry.

According to the announcement released by reader culture, the IPO P / E ratio of reader culture is 13.06 times, which is far from the dynamic P / E ratio at the closing of the company on July 19, but still higher than the industry average PE of 12.41 times.

In fact, among the listed companies on a year-on-year basis, the business scale is three times that of reader media, and the gross profit margin is more than 50%. As of July 19, the total market value is only 5.3 billion yuan, and the P / E ratio is 24.6 times; As a publishing giant, CITIC publishing has a total market value of 6.677 billion yuan and a dynamic P / E ratio of 21.1 times.

A Director Secretary of a company to be listed believes that the current PE of new shares is related to the trend of the secondary market. "In the market, the price of concept stocks is going up to the sky, but there are also companies whose share prices and PE are constantly breaking new lows. An important chapter of the IPO prospectus is the comparable companies. All the novelty agencies, including inquiry agencies, can clearly see the current PE of comparable companies. How can inquiry institutions quote high prices for some comparable listed companies even before the companies to be issued? "

However, the Secretary also admitted that the current inquiry agencies "group" low price quotation behavior does exist, but because there is no trace, no evidence, there is no way for supervision to intervene.

Discussion on inquiry system

In fact, the encounter of reader culture is only one part of the IPO ecology under the current registration system.

It is understood that the lowest price of new shares on the gem was jucan optoelectronics, which was listed on October 17, 2017, with an issue price of 2.82 yuan. It is also the only new stock that has been listed at a price lower than 3 yuan. Since the registration system in August 2020, the lowest price of new shares on the gem is Zhongchen shares listed in January this year, with an issue price of 3.37 yuan.

According to the reading of the prospectus, in this IPO, reader culture originally planned to raise 268 million yuan, but actually only 62.0155 million yuan. After deducting the issuance expenses, the net amount raised was 43.7281 million yuan, which will be used for copyright library construction projects. In other words, the fund raised by the stock is only 23% of the original plan. It has set a new low in registered new shares, which is still less than the company's net profit last year.

Before that, the completion rate of fund-raising was less than 30%. At the end of July last year, Longteng Optoelectronics (688055, issue price: 1.22 yuan), which was issued on the science and technology innovation board, was expected to raise 1.552 billion yuan, and the final total amount raised was 407 million yuan, and the fund-raising completion rate was only 26.21%. However, similar to reader culture, the first day of listing of Longteng optoelectronics Co., Ltd. also encountered investors' speculation. On the first day of listing, the stock price soared to 9.85 yuan / share, and then rose sharply in the following two trading days. The highest share price reached 15.2 yuan / share, which was more than 11 times higher than the issue price.

"The issuing pace is fast, the market becomes a buyer's market, and it is normal to depress the price. But the price is so concentrated but abnormal, there is obviously collusion, but there is no evidence. There may be reasons for speculation, but the greater reason is that the issuing price quotation institutions unreasonably bargain. The funds did not enter the company to support the development of the enterprise, but were plundered by the institutions to make a new share Wang Jiyue said.

In Wang Jiyue's opinion, the current market mechanism is "offer offer offer issue. The buyer's counter offer directly sets the price, and the seller can't say no." last year, the market discussed to change the behavior of eliminating 10% high price into eliminating extreme price. At least the rules are reasonable. Of course, securities companies can also set prices directly for issuance, and inquiry is not a necessary item. "

Dong Dengxin, director of the Institute of Finance and securities of Wuhan University of science and technology, also disagrees with the current market issuing rules. He proposes to abolish the market value allotment, "apply for subscription by means of paid in funds and frozen funds, and adopt unified freezing funds online and offline. Only by prepaying funds and freezing funds can they be qualified to apply for this placement. Only in this way can we eliminate inquiry, freezing funds and so on Irresponsible or collusive pricing. "

Dong Dengxin believes that market value allotment is a method under the approval system. Now that the registration system is implemented, the market value allotment should be abolished as soon as possible, otherwise it may lead to off-line inquiry institutions obtaining huge profits through stock price manipulation.

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