Affected by the electronic cigarette will usher in strict regulation, the big bull stock billion lithium energy (68.15-2.13%, diagnosis) share price fell nearly 16%, a single day market value evaporated nearly 24.8 billion yuan; this makes its shares held by 88 fund companies of 438 products loss, and the most injured of them all, Guangfa Fund Liu Gesuo, a day missing about 800 million yuan.
Billion lithium energy share price fell nearly 16% market value evaporated nearly 25 billion yuan
On March 22, the Ministry of Industry and Information Technology announced the “decision to amend the implementation regulations of the People’s Republic of China Tobacco Monopoly Law (draft for comment)” said, “electronic cigarettes and other new tobacco products with reference to the relevant provisions of these regulations on cigarettes.” Affected by this news, the electronic cigarette industry-related stocks fell across the board on March 23.
Among them, holding the Hong Kong shares of electronic cigarette leading Smarter International (06969.HK) shares proportion of 32.44% of the company’s lithium energy, the company’s share price once fell nearly 20% (down board), closing still plunged 15.85%, the share price hit the largest single-day decline in history! And Smarter International once plunged nearly 40% in early trading, closing although the decline has narrowed, but still fell as much as 27.22%.
After the single-day market value evaporated nearly 24.8 billion yuan, billion lithium energy in the interactive platform, the company supplies electronic atomizer batteries for well-known domestic and foreign enterprises, not involved in the manufacture and sale of electronic cigarettes. It is understood that the Simor is listed in the U.S. shares of the fog core technology of the electronic cigarette brand Yue engraved OEM party, the two companies in the same industry chain. And fog core technology 22 night plunged 47.84%.
Industry insiders pointed out that after the introduction of regulatory policies, the development of the electronic cigarette industry will be impacted, because once the payment of higher taxes is implemented, will affect the profit margin of electronic cigarette manufacturers, but also difficult to ensure that franchisees earn money. Due to the lithium energy both involved in the electronic cigarette business, but also participated in the Smarter International, the impact is larger. Therefore, its share price pressure is also reasonable.
It is worth noting that it is not the first Time that Lithium EVERYTHING has plunged because of e-cigarettes. 2019 CCTV 315 evening named e-cigarettes, mainly mentioning that e-cigarettes also release harmful substances such as formaldehyde, which endangers the health of smokers and passive smokers. The next day, that is, March 16, billion lithium energy opened quickly lower, once down nearly 7%.
For this electronic cigarette regulation on the impact of the relevant companies, CITIC Securities (24.23 +0.71%, diagnosis) said that the neutral situation, assuming that the regulation of atomized electronic cigarettes eventually succeeded in the implementation of the “Tobacco Monopoly Law Implementation Regulations”, but the Ministry of Industry and the State Tobacco Monopoly Bureau is expected to Simor, fog core technology and other head of private enterprises to issue tobacco monopoly license while increasing taxes, or China Tobacco Monopoly to purchase products from Smarter.
Statistics show that the share price of YWLS has increased by more than 10 times in just in less than two years since the fourth quarter of 2018. However, after the Chinese New Year, with the return of the valuation of institutional long positions, the company’s share price has fallen back significantly, and by the close of business on March 23, its highest drop of more than 40% during the year, the market value has evaporated nearly 100 billion.
Guangfa Fund Liu Ge Siong and other “step on the mine”
In recent years, billion lithium can share price has such a stunning performance, and the institution’s heavy holdings are not unrelated. Flush (123.38+1.45%, diagnosis) iFinD data shows that as of the end of 2020, a total of 438 funds hold YWLS, involving 88 fund companies’ products, holding a total of 390 million shares of the company, accounting for 21.82% of the company’s shares in circulation. According to the closing price on March 22, the total market value of the above holdings amounted to 32.3 billion yuan, and the market value fell to 27.2 billion yuan after the plunge on March 23, with a single-day loss of more than 5 billion yuan.
By company, Guangfa Fund is the most injured. As of the end of 2020, the company’s 14 funds hold a total of 105 million shares of lithium-ion, accounting for 5.9% of the company’s shares in circulation, of which the 2019 public fund champion Liu Gesong “hurt” the most. The data shows that the top four shareholdings are all products managed by Liu Gesong; three of the products appear in the top ten shareholders of Yilongwei Lithium.
Data show that, as of March 18, Guangfa Technology Pioneer Mix holds 24,745,500 shares of Lithium Yiwei, holding 1.31%, is the company’s 5th largest shareholder. Guangfa Double Engine Upgrade Mix holds 18,553,000 shares, with a shareholding ratio of 0.98%, and is the 9th largest shareholder of the company. Guangfa Small Cap Growth Mix holds 15,579,100 shares and is the 10th largest shareholder of the company; its shareholding ratio is 0.82%. The single day missing about 800 million yuan.
In addition, Jiaoyin Schroder, Ping An Fund and other shareholdings of billion lithium energy proportion of the company’s current shares are also more than 1%. However, because there is a certain lag in the disclosure of fund shareholding data, so do not rule out that in February so far the overall retracement process of lithium stocks, some institutions have reduced their positions. And after-hours data show that on March 23, four agencies sold a total of 824 million yuan of lithium billion, two agencies bought a total of 268 million yuan, agencies net selling 556 million yuan.
CITIC Securities, China Merchants Securities (19.93 +1.68%, diagnosis), etc. had shouted buy in the company’s share price history high
On January 25 of this year, the lithium company hit the highest price since the listing of 120 yuan / share. On that day, CITIC Securities and China Merchants Securities both issued research reports to sing the praises of lithium.
On January 25, CITIC Securities Song Shao Ling, Chen Junbin, Dong Yu kind of 3 researchers jointly published a research report entitled “Yiwei lithium energy: a global perspective on power storage stand out to a new height” pointed out that the company’s power battery business through the accumulation of established technology, production capacity, customers and other advantages, in accelerating global support. At the same time, the company’s lithium primary batteries: consumer lithium-ion batteries in the market segment in the leading or leading position, benefiting from the downstream boom, performance growth is clear. In addition, the company’s shareholding in the operation of Simor continues to grow, which will bring good investment income. Using the segment valuation method, the company’s target market value is 286.6 billion yuan, with a target price of 151.72 yuan per share, maintaining a “buy” rating.
On the same day, China Merchants Securities researcher You Jiaxun, Liu Junhan published a research report entitled “YIWU LITHIUM ENERGY: SMO performance exceeds expectations power sector is brewing new growth momentum”, said the company’s lithium iron battery production capacity over the past year to achieve several times the expansion and reach 10GWh capacity, along with the recovery of commercial vehicles and energy storage and other market development, lithium iron business contribution will also be more prominent. The company’s growth this year with high certainty, and with the emergence of new growth points in the field of power storage, future growth is more clear, continue to strongly recommend, raise earnings forecasts and raise the target price to 135-150 yuan.
It is worth mentioning that, in the context of the company’s valuation Chinese New Year after the obvious fall, Guoyuan Securities (7.93 +1.02%, clinic shares) researcher Man Zaipeng in March 11 wrote a report entitled “Yiwei lithium energy: review report: vigorous layout of passenger cars lithium iron, power battery highlights continue to”, said the company is expected to 2020-2022 revenue of 84.10, 16.011, respectively 20.405 billion yuan, net profit attributable to the mother of 1.627, 3.535 and 5.472 billion yuan respectively. Based on the industry average valuation and future growth expectations, the target price is 140.52 and the Buy rating is maintained.