As the most popular track in the past few years, new energy has given birth to many big bull stocks.
In addition to the two core branches of new energy, new energy vehicles and photovoltaics, the wind power field is also full of bull stocks.
plummeted by nearly 80%, and the performance reversed
For example, Mingyang Intelligence, a wind power company, was less than 5 yuan when it was listed in 2019, and after catching up with the new energy bull market in 2021, it rose to more than 35 yuan that year, and its stock price increased 6 times in less than three years.
However, after the vigorous rise, with the change of fundamentals, Mingyang Intelligence has fallen all the way in the past two years, from the highest 35.68 yuan to the lowest 7.85 yuan at the beginning of this year, a decline of nearly 80%.
From a sharp rise all the way to a sharp fall, behind the drastic changes in stock prices is the reversal of Mingyang Intelligence's performance.
Mingyang Intelligent was listed on the A-share market in January 2019, in fact, as early as 2010, the company was listed in the United States, and it is the first domestic fan manufacturing enterprise to be listed in the United States.
During the listing of the U.S. stock market, Mingyang Intelligence's revenue declined, and the stock price performance was not good. The company was delisted from the privatization of the U.S. stock market in 2016, and was successfully listed on the main board of the Shanghai Stock Exchange in 2019 after three years.
After such a round of twists and turns, Mingyang Intelligent returned to the "home of China", and its stock price began to rise in 2020, and from June to November 2021, it soared all the way, soaring from around 13 yuan to more than 35 yuan.
The three years from 2019 to 2021 are three years of rapid development of the wind power industry, with the continuous expansion of wind power scale and the tide of wind power installation. At that time, tidal power, offshore wind turbines, and carbon neutrality were all buzzwords in the stock market.
The popularity of the wind power industry has made the scale of Mingyang Intelligent rapidly expand. From 2019 to 2021, the company's revenue was 10.493 billion yuan, 22.457 billion yuan, and 27.158 billion yuan respectively. In the same period, the company's net profit was 713 million yuan, 1.374 billion yuan and 3.101 billion yuan respectively.
It can be seen that the net profit growth rate of Mingyang Intelligent in 2021 will be higher than the revenue growth rate, which may be an important reason why the company's stock price has skyrocketed for 5 consecutive months that year.
Capital is always profitable, lithium battery, photovoltaic, wind power and other companies, after the revenue and net profit soared, becoming a big bull stock, smelling business opportunities of capital accelerated into these industries. As a result, the production capacity expanded rapidly, and the price war became more and more fierce. In an increasingly involuted environment, the company's profits continued to decline, and the stock price began to plummet.
As a result, we see that Mingyang Smart's stock price will plummet by about 50% in 2023 and by about 25% in the first half of 2024.
As early as 2022, the year when Mingyang Intelligence's share price peaked, its net profit growth rate fell sharply to a single-digit growth range of 9.4%.
In 2023, Mingyang Intelligence's performance will be "ankle cut":
Operating income fell by nearly 10%; Net profit decreased by 89.19%.
Abandoned by the capital market, executives cashed out intensively
The deterioration of fundamentals and the sharp drop in stock prices have made Mingyang Intelligent face the situation of being abandoned by the capital market:
As of the end of the first quarter of this year, Mingyang Intelligent's institutional holdings remained 793 million shares, a significant decrease from 993 million shares at the end of 2023.
In mid-May this year, the MSCI China Index excluded Mingyang Smart as a constituent stock.
What is the reason for the plummeting performance? In particular, why is net profit much more than revenue decline in 2023?
I'm afraid it's a problem with accounts receivable.
From 2021 to 2023, Mingyang Intelligent's accounts receivable will be 5.856 billion yuan, 10.774 billion yuan, and 13.923 billion yuan respectively, an increase of 57.65%, 83.99%, and 29.23% year-on-year, respectively.
The sharp increase in accounts receivable will undoubtedly bring a greater risk of bad debts, and the sharp increase in the company's accounts receivable as early as 2022 has attracted the attention of investors.
Investors questioned the company's aggressive credit strategy, i.e., the product was sold without receiving payment.
Mingyang Intelligent replied that the company's main customers are large power groups, and the relevant sales payment collection has a good reputation. The rapid growth of receivables is due to the fact that the payment rhythm of downstream customers has generally returned to normal levels after the industry has experienced a wave of centralized installations.
For companies in any industry, a surge in accounts receivable is an important signal of deteriorating financial data. As executives and important shareholders of listed companies, they are well aware of the company's daily operations. So don't look at what directors, supervisors, senior executives, and major shareholders say, but look at what they do.
Mingyang Intelligent issued a large number of shareholder reduction announcements in 2022 and 2023, and Chairman Zhang Chuanwei and others continued to reduce their holdings and cash out the company's shares.
In addition to direct reduction, Mingyang Intelligent has also pledged shares. For example, on April 16 this year, the company announced that the controlling shareholder Energy Investment Group and Bohai Trust reached a consensus to supplement the pledge of 12 million shares of Mingyang Intelligence. This kind of supplementary pledge and obtaining funds is also considered by many investors to belong to the category of fancy cash-out and disguised cash-out.
Negative public opinion continues, and the company sells assets to survive
Some executives of Mingyang Intelligence are busy reducing their holdings and cashing out, and some executives are busy short-term trading stocks to make money.
On June 27, Mingyang Intelligent issued the "Announcement on the Company's Former Supervisor Receiving the Administrative Penalty Decision from the Guangdong Supervision Bureau", stating that Zheng Weili, the company's former supervisor, used the securities accounts of his spouse, mother, and children to sell within six months after buying, and bought Mingyang Smart shares within six months after selling, involving a total amount of 1,838,447 yuan.
Zheng Weili violated the relevant provisions of the Securities Law and constituted an illegal act. The Guangdong Securities Regulatory Bureau decided to give Zheng Weili a warning and impose a fine of 100,000 yuan.
The illegal short-term trading of the former executives shows that there are serious problems in the internal governance of Mingyang Intelligence. In addition, Mingyang Intelligent was also "blacked" because it was "unclean" in operation.
On May 7 and June 3 this year, State Grid Hubei Electric Power Co., Ltd. and State Grid respectively announced the handling of bad behavior of suppliers. Both Mingyang Electric and Zhongshan Mingyang were blacklisted for bribery.
According to the handling measures notified by the State Grid, from February 23, 2024 to February 22, 2027, Mingyang Electric and Zhongshan Mingyang will be blacklisted in the bidding and procurement of the State Grid system for 3 years.
All kinds of events show that Mingyang Intelligence is not developing smoothly today.
In the face of the current situation, Mingyang Intelligent began to sell assets to reduce the burden and survive.
On June 21, Mingyang Intelligent announced that it would sell 100% of the shares of its subsidiary Kailu Mingyang to CGN for 960 million yuan.
On June 25, Mingyang Intelligent sold 100% of the equity of Naiman Banner Mingyang to CGN at a price of 558 million yuan.
The sale of the two assets will bring more than 1.5 billion yuan to Mingyang Intelligence.
Selling some assets can bring back the blood, which cannot fundamentally change the fundamentals of Mingyang Intelligence.
Incidents such as illegal short-term trading and commercial bribery of Mingyang Intelligent executives show that there are many serious problems in the company's internal governance.
The collapse of its stock price can not only be blamed on the intensification of the industry's involution, but also should find problems from itself.
It is the nearly 150,000 investors who have suffered to buy the company's shares, and while losing blood, they have to constantly endure all kinds of bad news about the company.