Due to the impact of a sharp decline in performance, Huiding Technology opened lower limit again on Thursday. This is the third low limit for the company, followed by a low limit. The closing price still tumbled 7%. As the leader in the global fingerprint identification chip, After listing, TopTech was greeted with frantic funding, and had a daily limit of 20 consecutive days. However, over time, the company's performance has been poor. Last year, the growth rate of net profit declined. The performance in the first quarter reportedly dropped by 90%, causing the organization to flee, and the stock price was also cut. Now, facing the downturn in the smart phone industry chain, the company can only regain its brilliance.
Three-day market value evaporated over 10 billion yuan
Wearing the 'Global Leader in Human-Computer Interaction and Biometrics Technology', Huiding Technology landed A shares on October 17, 2016. It was highly regarded by the market and has been listed on the market for 20 consecutive daily limit, which is extremely impressive.
According to the data, the company's main products are fingerprint identification chips and touch chips. It is a core technology company with independent intellectual property rights, and is a leading supplier of leading intelligent terminal brands at home and abroad. Products and solutions are used in Huawei, Lenovo, ZTE, OPPO, Vivo, Meizu, Leshi, Samsung Display, JDI, Nokia, Toshiba, Panasonic, Acer, ASUS and other well-known international and domestic terminal brands.
On April 27, Huiding Technology announced its annual report and quarterly report. The annual report shows that last year, the company achieved revenue of 3.682 billion yuan, an increase of 19.56% year-on-year; net profit of 887 million yuan, only a slight increase of 3.52% year-on-year. More bleak is According to the quarterly report, the net profit attributable to owners of the parent company in the first quarter was 19.3522 million yuan, a year-on-year drop of 88.96%; operating income was 571 million yuan, a year-on-year decrease of 21.90%; basic earnings per share were 0.04 yuan.
In response, the company explained that the first quarter was the convergence period of the company's new and old products. Due to the market competition and the high penetration rate of the products in mobile applications, the mature products resulted in no significant increase in sales but the price remained under pressure, resulting in the first quarter. There was a noticeable decline in performance. On the other hand, the company further increased R&D investment in new products in the first half of the year, implemented an equity incentive plan, and acquired Ganli Germany Co., Ltd. through its Hong Kong subsidiary. All of the above measures resulted in substantial growth in R&D expenses and management expenses.
Chairman Zhang Fan also explained at the performance briefing that the main reason for the decrease in revenue was seasonality, and that the time of the new year was long, so the company’s shipping time was reduced. In addition, because the working time in the first quarter was relatively short, the mobile phone market did not perform well. it is good.
However, the explanation of the company has not been approved by investors. The stock was blocked by the giants after the opening bell on Friday, and once again dropped to the lowest limit on the first trading day after the holiday. Although this Thursday's low limit was once opened, the closing price still fell 7%. In just three trading days, the stock has fallen by as much as 25%. The market value has evaporated over 10 billion yuan, and investors have suffered heavy losses.
It is worth mentioning that just a week before the low limit, April 20, stimulated by Sino-U.S. trade frictions, the chip sector rose sharply, and Huiding Technology even hit a daily limit, setting a new record on April 26th. The new high of 111 yuan during the year. However, just three trading days, the stock was beaten, even forced to a new low in recent years.
Large fluctuations in performance agencies fled
Although standing in various auras, the performance of Huiding Technology in recent years has been unsatisfactory. From the company's performance in recent years, it can be described as significant volatility. The data show that the company's 2015 net profit fell 1.4% year-on-year, and 2016 The annual net profit has increased by 126%. Last year, the growth rate of the company's performance dropped sharply to 3.5%. In the first quarter of this year, the net profit dropped by nearly 90%. From the current point of view, the probability of the company's performance decline this year is very large. Such a large change in performance, It seems that the company is not a high growth technology stock expected by the market, but similar to the cyclical stock.
With the declining performance growth, the company was also abandoned by institutional investors. The annual report shows that the southern ingredients selection, flexible access to the Internet media configuration, Happiness Life Insurance - Portfolio 01, CCB Internet + industrial upgrading and other institutions in the fourth quarter of last year have withdrawn The company's top ten shareholders of tradable shares.
A quarterly report shows that the top ten shareholders of tradable shares can no longer see the insurance and public funds. It is not difficult to see that the company has been abandoned by the organization.
It is worth mentioning that, in November of last year, the company won the national integrated circuit industry investment fund 2.8 billion shares. According to Huiding Technology announced at the time, shareholders of Huifa International, Huixin Investment will hold 6.15% of the shares held by the transfer to the national integrated circuit industry Investment funds (referred to as 'major funds'), after the completion of the transaction, the major funds will become the company's holdings of more than 5% of the top five largest shareholders.
The transfer price was 93.69 yuan/share, and the transaction price was about 2.8 billion yuan, becoming the largest agreement for the largest funds to withdraw funds. After the news was announced, the stock rose 15% in two days. However, the closing price was based on Thursday. , The big fund has floated 15%.
From 2014 to 2016, Huiding Technology's fingerprint recognition chips accounted for 1.13%, 23.31% and 75.1% of the total revenue, respectively. The rate of increase is huge. The company is currently enjoying a fascinating experience in the fingerprint chip market.
However, in the first quarter of this year, China's domestic mobile phone brand shipments totaled 75.764 million units, a year-on-year drop of 28%. With the smartphone market becoming saturated, the use of fingerprint chips in mobile phones is also becoming saturated. Continuing with the industry With the decline, the company has increased R&D, and optical fingerprint chip products have also started mass production. However, whether or not it can reverse its performance decline is still unknown.