After the Spring Festival, A shares entered A comprehensive pullback, stock prices have plummeted for days.Before the Spring Festival fund group of leading stocks, in the pullback fell the fastest, including the photovoltaic industry leading stocks - Longji shares. Since Feb. 28, Longji shares have been in a correction, falling more or less, especially in the last few days, the decline is more severe.
On March 8, Longji shares fell by the limit, and on March 9, they continued to drop by 6.15%. By the close of the market on March 10, Longji shares closed at 85 yuan per share, down 32% from the peak of 125 yuan per share. Calculated at the latest price, compared to the peak of the stock price, Longji shares have evaporated as high as more than 150 billion yuan of market value!Longji shares why the day after day slump or even a single day limit?
From the plate point of view, the whole photovoltaic plate is declining, the price of photovoltaic raw materials.Data show that from last week, the price of photovoltaic raw materials rose significantly.
Among them, the average transaction price of domestic single crystal refeed was 110.8 yuan per kg, up 4.23% month-on-month;The average transaction price of single crystal compact material was 108 yuan per kg, up 4.45% month-on-month; Single crystal cauliflower material transaction average price of 105.3 yuan per kg, up 4.88%;The average price of polycrystalline materials was 63.3 yuan per kg, up 8.58% month-on-month. Raw material prices, resulting in rising costs, Longji shares can only announce its silicon wafer product price, up about 9%!Product prices rise, the whole photovoltaic industry is bearish, Longji shares as a well-deserved leader in the photovoltaic industry, the stock price is affected by the fall is reasonable, but still not to reach the extent of the limit. The other factor that affects the market is the current mood.The recent market fund stampede is still continuing to ferment, and Longji shares happen to be a member of the fund group. Data show that Longji shares are a large number of fund heavy warehouse holdings, is a partial stock fund heavy warehouse stocks.Among them, Guangfa Fund Management Co., Ltd. holds the share of Longji shares accounted for 2.49%! As the leading stock of the photovoltaic industry, a large number of fund companies are holding heavy warehouse is understandable. But this kind of solidarity is not sustainable. Due to the reversal of market sentiment, the fund redemption wave appeared, in order to deal with the fund companies had to clear part of the weighted stocks, which also exacerbated the decline of Longji shares, leading to a direct drop in the limit on March 8.However, the collapse of Longji shares is probably difficult to change its advantages. Big capital's expectation of Longji shares is still good. For example, Longji shares introduced the famous Hillhouse capital in the latest major equity change.
On December 20, 2020, Hillhouse Capital transferred 6% of the company's shares held by Li Chun 'an, one of the founders of Longji, at a price of 15.8 billion yuan, and became the second largest shareholder of Longji. Affected by this news, Longji shares skyrocketed for days, the price-earnings ratio reached more than 40 times, creating a large number of bubbles to Longji shares. Now, the market has pulled back, and Hillhouse's entry to push up the share price seems to have come full circle and come back. The investment price of Hillhouse Capital is around 70 yuan per share, while the current market price has fallen back to 85 yuan per share, which is close to the cost price of Hillhouse Capital. Hillhouse Capital's investment is also because it is optimistic about the future development of Longji shares.Longji shares as a leader in the photovoltaic industry, its performance in all aspects is very bright. Data show that the operating income and net profit of Longji shares in the past three years have grown very fast, and the profit growth rate in 2020 can still reach 70%, and the net profit reaches 8 billion yuan! Such a high net profit growth rate is very rare in any industry, if this growth rate can be maintained will be very terrible.In the final analysis, Longji shares are in the strategic victory over all the peers, just have today's excellent performance. Founded in 2000, Longji shares, the main business is the production of polysilicon wafers.
At that time, there were two main production directions in the market: monocrystalline silicon wafer and polycrystalline silicon wafer. The production cost of polycrystalline silicon wafer was lower than that of monocrystalline silicon wafer. The vast majority of photovoltaic enterprises chose relatively mature polycrystalline silicon wafer and took a wait-and-see attitude to monocrystalline silicon wafer. However, the founder team of Longji shares has found in the experiment that the production cost of monocrystalline silicon wafers in the future will be greatly reduced and become the mainstream of the photovoltaic industry.Therefore, in 2006, Longji shares did not hesitate to change the company's positioning into monocrystalline silicon wafer production, against the trend of the market. As the team expected, after years of development, the production cost of monocrystalline silicon wafers has been greatly reduced.In 2012, Lonji's cost of producing polysilicon wafers was about 2.12 yuan per wafer. In 2019, this figure has dropped to 0.74 yuan per wafer. With the decrease of costs and the continuous expansion of Longji shares, the company's revenue and net profit keep rising. With the early entry, Longji shares gradually expanded to become the leading enterprise in the photovoltaic industry, and its operating income and net profit showed explosive growth.
The entry of Hillhouse Capital represents Zhang Lei's optimistic attitude towards Longji shares, which still has great development space in the future. Hillhouse's equity investment is still profitable, and the price after two years is not yet known.On March 10, A has been three consecutive big Yin line, even fell three days later, the market has begun to appear "bottom copy" the sound! After all, the slump is a good opportunity to bottom, bottom on the market when the voice of the rise and fall, that has begun to enter the capital.So, Longji shares at this time is worth bottom-hunting?