The share price of HNA Holdings is approaching 1 yuan, and the new chairman is facing pressure on market value management

Blue Whale Finance

2024-06-27 22:31Blue Whale Finance official account

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01 The share price of HNA Holdings continued to fluctuate downward, approaching the red line of 1 yuan, with a market value of 47.11 billion yuan.

In 022023, HNA Holdings successfully turned losses into profits, but the non-net profit was still lost, and the company's debt repayment pressure was still large.

03 In May this year, Zhu Tao, the newly appointed chairman of HNA Holdings, faced the challenge of boosting the company's stock price and performance.

04 In addition to HNA Holdings, there are still 7 A-share listed companies whose stock prices are lower than 1.5 yuan per share, but the total market value is still more than 10 billion yuan.

05 Due to the impact of the market environment and seasonal factors, there is some pressure on the performance of the civil aviation sector in the second quarter.

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Blue Whale News, June 27 (Reporter Wang Xiaonan) Since June, the share price of HNA Holdings has continued to fluctuate and decline, and at present, the stock price has approached the "1 yuan red line".

On June 27, HNA Holdings opened low again, falling by 4% during the session, and finally closed at 1.09 yuan per share, with a market value of 47.11 billion yuan. The day before, HNA Holdings' share price fell to 1.05 yuan per share intraday, hitting a new low in nearly 16 years since November 2008. On June 25, HNA Holdings just released a plan to "improve quality, increase efficiency and return on returns", which is obviously not enough to boost the market.

In 2021, after Liaoning Fangda Group invested 41 billion yuan to become the owner of HNA Holdings, after two years, the company successfully turned losses into profits in 2023, but the non-net profit was still lost, and the company's debt repayment pressure was still large. For Zhu Tao, the new chairman of HNA Holdings in May this year, boosting the company's stock price and performance is a challenge.

The stock price is close to the "1 yuan red line", and the market value exceeds 50 billion

HNA Holdings' stock price was volatile, and its market value fell below 50 billion yuan.

In the past month, the share price of HNA Holdings has accelerated its volatility and fall, and as of today's close, it has fallen nearly 20.44% in the month. On June 27, the total turnover of HNA Holdings was 244 million yuan, and the turnover rate was only 0.69%, which means that HNA Holdings did not usher in the main funds as a white knight to save the company's stock price. At present, the total share capital of HNA Holdings is 43.22 billion shares, and the outstanding shares are 32.87 billion shares, which virtually increases the difficulty of the stock price rise.

According to the regulations of the exchange, if the closing price of the company's shares is lower than 1 yuan for 20 consecutive trading days, it will touch the forced delisting of the trading class and be terminated by the Shanghai Stock Exchange, and HNA Holdings may face a delisting crisis.

As for the reasons for the continuous decline in the stock price, as well as whether the company will take remedial measures if it may touch the bottom line of delisting at face value, Blue Whale News called HNA Holdings several times today, and the company's phone has been busy.

In the middle of this month, HNA Holdings replied to investors on the interactive platform that the stock price in the secondary market is affected by many complex factors such as the macroeconomic environment, domestic and foreign industrial policies, market trends and industry situations, investors' psychological expectations, and the company's operating performance. The company attaches great importance to the maintenance and management of market value, and formulates a market value maintenance plan.

It is worth mentioning that on June 25, HNA Holdings announced the 2024 action plan of "improving quality, efficiency and return", which mentioned strengthening market value management, continuing to increase the company's net assets without increasing the company's total share capital, and timely evaluating the feasibility of market value management through share repurchase and cancellation according to the actual operating situation and development plan.

At present, HNA Holdings has not thrown out substantive measures to deal with the crisis caused by the decline in stock prices.

In addition to HNA Holdings, there are still 7 A-share listed companies whose share prices are less than 1.5 yuan per share, but due to the large total share capital, the total market value is still more than 10 billion yuan, and the above seven companies are Baotou Iron and Steel Co., Ltd., Liaoning Port Co., Ltd., Yongtai Energy, Greenland Holdings, Jinyu Group, Shanzi Hi-Tech and Shandong High-speed Railway, among them, Baotou Steel Co., Ltd. has the highest total market value of 63.1 billion yuan.

Less than a month into office, the new chairman encountered challenges

In 2021, HNA's main business segment was officially taken over by private capital after undergoing bankruptcy reorganization and capital introduction. Liaoning Fangda Group set up tens of billions of yuan in mergers and acquisitions, won in direct competition with JuneYao and Fosun, including the controlling shareholder of Juneyao Airlines, and spent 41 billion yuan to win the main business assets of HNA Aviation, which is also the more eye-catching operation of Fang Wei, the head of Liaoning Fangda Group, in recent years.

As the head of Liaoning Fangda Group, Fang Wei was born in 1973, a native of Shenyang, Liaoning Province, and earned his first pot of gold by reselling scrap steel in his early years. However, Fang Wei rarely appears in public and is a well-known "invisible rich". In the 2023 Hurun Report, Fang Wei is on the list with a wealth of 63 billion yuan.

At present, Liaoning Fangda Group is a large-scale enterprise group with carbon, steel, medicine, commerce and aviation as the core, and now owns five listed companies, including Fangda Carbon, Fangda Special Steel, Northeast Pharmaceutical, Zhongxing Commercial, HNA Holdings, and four listed companies on the New Third Board, including Chengdu Carbon.

Half a year after the introduction of Liaoning Fangda Group, HNA Holdings achieved "star picking" on May 18, 2022, and in September of that year, ST HNA officially took off its hat and changed its securities abbreviation to HNA Holdings. In the same year, HNA Holdings suffered a loss of 20.247 billion yuan, and this year, the company intensively adjusted its personnel, and changed its leadership three times during the year.

At the end of January 2022, Liu Lu, the former chairman of HNA Holdings, resigned from the company's legal representative and chairman of the board of directors for personal reasons; In February of the same year, Wang Yingming, president of HNA Aviation Group, took over as chairman; Four months later, in June 2022, Cheng Yong from China Southern Airlines replaced Wang Yingming as the legal representative and chairman of HNA Holdings; However, in November of the same year, Ding Yongzheng replaced Cheng Yong as the company's chairman and legal representative. It should be pointed out that except for Cheng Yong, who is from China Southern Airlines, the other three chairmen all have a background in working in the HNA Department.

Judging from the company's performance in the later period, during Ding Yongzheng's tenure as chairman, the performance of HNA Holdings has steadily improved, and affected by the recovery of the industry, HNA Holdings will turn around its losses in 2023, which is also the second full fiscal year for Liaoning Fangda Group to become the owner of HNA Holdings. This year, HNA Holdings achieved revenue of 58.641 billion yuan, a year-on-year increase of 156.48%; The net profit attributable to the parent company was 311 million yuan, a year-on-year increase of 101.54%.

Although the net profit attributable to HNA Holdings will turn into a profit in 2023, the net profit attributable to the parent after deducting non-profits, which represents the company's actual profitability, is still a loss.

Due to the recovery of the aviation industry market and the Spring Festival holiday, the performance of HNA Holdings increased significantly in the first quarter of this year, and the net profit attributable to the parent company in just one quarter exceeded twice that of the whole year of 2023, at 686 million yuan. However, HNA Holdings' short-term debt repayment pressure is relatively high, with an asset-liability ratio of 98.46%, monetary funds of only 9.375 billion yuan, non-current liabilities due in one year of 14.65 billion yuan, and long-term borrowings of 45.838 billion yuan.

Although the performance in the first quarter has improved significantly, due to the impact of the market environment and seasonal factors, there is some pressure on the performance of the civil aviation sector in the second quarter, which is also reflected in HNA Holdings. In terms of operating data, in April and May this year, HNA Holdings' revenue passenger kilometers, passenger traffic and passenger capacity investment declined month-on-month for two consecutive months.

On May 31, HNA Holdings changed its leadership again, and the announcement showed that due to work adjustments, Ding Yongzheng no longer served as the company's chairman and legal representative, and will continue to serve as the company's director and chairman of HNA Aviation Group Co., Ltd., and the position of chairman of HNA Holdings was held by President Zhu Tao, who is also an "old HNA person". According to the announcement, Zhu Tao joined the work in 1999 and served as chairman and president of West Airlines Co., Ltd., chairman of Suparna Airlines Co., Ltd., chief executive officer of Hong Kong Express Airlines Co., Ltd., and chief executive officer of HNA General Aviation Investment Group Co., Ltd.

In addition, HNA Holdings also appointed Yu Chaojie, a "post-80s" generation, as the company's president, who joined the work in 2002 and served as the president and general manager of Shanghai Golden Deer Business Aviation Co., Ltd., the vice president of operations of Golden Deer Business Aviation Co., Ltd., and the vice president of operations of HNA Holdings.

This "old HNA man", who has been in office for less than a month, is about to face the double test of promoting performance growth and maintaining the status of a listed company.