Is Chongqing Chuanyi expected to go public?

No.1 Renmin Village, Beibei District, Chongqing, with beautiful mountains and clear waters. Chongqing Chuanyi Automation Co., Ltd., located here, was listed on the Shenzhen Stock Exchange in August 1996, but unfortunately was regarded as a "hot potato" by major shareholders 12 years ago.

Former 'junk stocks' want to return to the market

The reporter went to great lengths to find an old stock trader named Guo Jie who has been trading at Southwest Securities for 17 years. He was surprised to hear this and said, "I've been in the market for so many years, and I've never heard that selling the 'turtle shell' can still lead to an IPO. ”

Guo Jie still remembers that after Chongqing Chuanyi went public, everyone thought it was a junk stock, and it lost money in its second year of listing. However, there were restructuring expectations in 1998 and it was acquired in 1999, so the market was good. But back then, technology stocks were the most eye-catching, and not many people paid attention to them.

12 years later, the business is still the same as before. The difference is that Chongqing Chuanyi, which used to incur annual losses, had excellent performance by the end of 2011, with a net profit of nearly 200 million yuan. Without deducting non recurring gains and losses, the earnings per share reached as high as 60 cents.

The "turtle shell" that was once sold now wants to be repurchased, and this is also the first time that Chongqing veteran investors who have been trading stocks for 17 years have heard of it. According to the prospectus released by the China Securities Regulatory Commission, Chongqing Chuanyi intends to return to the Shanghai Stock Exchange for another listing, issuing 100 million shares. Although the fundraising amount is currently unclear, the total amount of the company's three major investment projects is 420 million yuan, all of which will come from the raised funds.

Due to the intervention of Huali Group, this stock has also experienced a wave of speculation. From 1998 to 2001, the market bottomed out and the stock rose nearly 400%.

In April 1999, it became 'ST Heavy Instrument' and was later listed under the shell by Huali Group, with related assets subsequently exiting the market. ”Xing Fei from Shanghai Securities said.

*Policy gaps behind it

In the past, delisted or shell selling companies hoped to go public again but dared not apply, fearing that they would not pass the IPO review committee. However, the law does not prohibit similar companies from going public again in this regard, as long as they meet the listing conditions, they can generally do so.

In the prospectus, the company's lawyer believes that the establishment process of Chuanyi will not pose substantial legal obstacles to the recognition of its subject qualifications and the issuance and listing.

This is a matter of verifying the wisdom of the supervisory committee. Due to the sale of the shell, the surviving company has applied for another IPO, or is it *. How does the China Securities Regulatory Commission decide, which also involves regulatory guidance, whether to allow surviving companies after shell selling to relist? The answer is pending from the China Securities Regulatory Commission.

The difficulty of 'passing the meeting' is estimated to be not high

The prospectus believes that the reason for the company's previous acquisition by Four Union Group was due to the poor cycle of the instrument business, which led to a decline in performance and was acquired. But now the profitability of this asset has improved and meets the listing standards. Some people are concerned that as the first company to delist and relist, it may be difficult to pass the meeting.

It's probably not a big problem, "said Jin Zhiyi of Huachuang Securities. As a prospective listed company in the western region, there is still policy support.

In May of this year, the China Securities Regulatory Commission stated that it would prioritize the review of companies planning to go public in the western region and support the economic development of the western region. The policy aims to support the economic development of the western region, while also addressing the current imbalance of listed companies in the eastern and western regions, "Jin Zhiyi analyzed.

Low gross profit, high debt ratio, unknown value

Nowadays, Chuanyi also has a theme and automatic control system device, and has been awarded the title of "Enterprise Contributing to the Shenzhou VI Manned Technology Space Flight Mission and Launch Vehicle Development" by China Aerospace Science and Technology Corporation. If Chongqing Chuanyi is successfully listed in the future, what is the investment value?

Due to the current period of silence, pricing is not yet known, and specific analysis cannot be discussed. However, from a fundamental perspective, growth potential is low with low gross profit and high debt to equity ratio, and the quality is also average, "said Xing Fei from Shanghai Securities.

The prospectus shows that the company's gross profit margin is lower than that of its peers. In addition, compared with similar listed companies, Chongqing Chuanyi's asset liability ratio is higher than that of industry companies, including Weiltai, Xuedilong, Wanxun self-control, and Focus Technology. Data shows that in 2009, 2010, and 2011, the company's asset liability ratio was 64.72%, 67.35%, and 73.66%, respectively, with a structure of short-term borrowings.