30 Enterprises Are Expected To Embark On The Journey Of Board Transfer

The news that the detailed rules for the transfer of the new third board to the board began to solicit public opinions, which once again stimulated the enthusiasm of the market.

November 30, 36 selected layer stocks rose in the morning, as of the closing time is still red. Among them, Wantong hydraulic and Lude medical rose by 16.15% and 14.83% respectively throughout the day, and senxuan medicine, which had the worst growth, also rose slightly by 0.5%.

Last Friday, the Shanghai and Shenzhen stock exchanges successively solicited opinions on the measures for listing companies listed in the national small and medium-sized enterprise stock transfer system to the gem (for Trial Implementation) (hereinafter referred to as the measures for listing on the GEM).

On the same day, the national small and medium-sized enterprise stock transfer system also said that after the formal release and implementation of the measures, regulatory arrangements such as information disclosure and suspension and resumption of listing on the stock exchange will be refined, and the listing of companies listed on the new third board will be actively implemented.

36 selected layers of stocks, the whole line volume closed up

"The measures for listing on the second board of the people's Republic of China (hereinafter referred to as the measures for listing on the second board) began to solicit opinions, indicating that the listed companies of the selected tier of the new third board have entered the practical stage of listing on the second board, and conveyed a clear signal that the dividends of the follow-up reform will continue to be implemented.". Zhou Yunnan, founder of Beijing Nanshan investment, believes that the introduction of the new rules is expected to eliminate the panic caused by the large number of new shares of the first and second batch of selected layer, digest the emotional pressure of the new players of the selection layer, reverse the pessimistic expectation of the market on the selection layer, break the deadlock of multi loss in the current public offering, and quickly restore the secondary market of the selective layer to a normal state.

According to the draft of the measures for listing on the second board, in order to realize the listing on the new third board, in addition to meeting the requirements of "continuously listing on the selected layer for more than one year, and there is no situation that the company should transfer out of the selected layer" in the latest year, it also needs to meet the IPO standards of the science and technology innovation board or gem in terms of market value and financial indicators, and the total equity shall not be less than 30 million The company or its controlling shareholders and actual controllers have not been subject to administrative penalty within three years.

At the same time, the measures for listing on the board of directors also stipulates that the number of shareholders shall not be less than 1000, and the cumulative trading volume of stocks for 60 consecutive trading days (excluding the day of suspension of shares) before the announcement date of the board of directors' deliberation and approval of the relevant matters of the board of directors is not less than 10 million shares.

Zhou Yunnan believes that the clarity of the transfer board listing policy and the expectation that it will soon enter the practical operation will greatly stimulate the activity of the secondary market. In particular, the three provisions in the rules, namely, more than 1000 shareholders, more than 10 million shares and average market value, will directly drive the rise of the first batch of concept stocks listed on the transfer board.

Judging from the market performance on November 30, the selected layer stocks basically remained at a high level after the general rise in the opening session, slightly differentiated in the afternoon, but finally closed up on the whole line. Among them, Wantong hydraulic and Lude medical rose by 16.15% and 14.83% respectively. What is more worth mentioning is that in the early trading, Lude Medical Co., Ltd. set the first trading limit for the selected layer since it was listed on July 27 with an increase of 29.93%, which greatly stimulated the secondary market of the selected layer.

On the whole, the total market value of the selected stocks increased by 2 billion yuan to 80135 million yuan compared with the previous trading day. Previously, the relatively quiet transaction data of individual stocks also recovered. On November 30, the total transaction volume of 36 selected stocks reached 370 million yuan, compared with 134 million yuan in the whole market on the previous trading day, and the market turnover doubled.

In the view of Liu Jing, chief analyst of Shenwan Hongyuan's new third board, the valuation of the head companies of the selected layer will be closer to the comparable companies in the exchange market in the future.

"The concept market of listing on the board will not be just a one-day tour, but it can't be achieved overnight and in one step. The rise of concept stocks listed on the board will be a spiral rise", Zhou Yunnan also pointed out that non concept stocks may also be lowered, which will lead to the next step of secondary market differentiation by certainty and expectation.

Carefully select the concept target of conversion

As the above industry said, November 30 in the select layer market, individual stock market has been expected to turn the board appeared obvious differentiation.

After the selection of high-end stocks in the early open market, only 36. At the end of the day, Bertrand, Yingtai biology and senxuan pharmaceutical, which were all restricted by the rules of spin off, were not eligible to be listed on the board in the short term.

In December 2019, China Securities Regulatory Commission (CSRC) officially issued some provisions on pilot projects of domestic listing of subsidiaries of listed companies, which provides basis and policy support for A-share companies to spin off their subsidiaries for domestic listing, and also lists various indicators to be met for spin off listing, including: continuous listing for more than three years; continuous profitability in the last three years; deducting the net profit of spin off subsidiaries, the company has accumulated for three years The net profit shall not be less than 600 million yuan; the net profit of the spin off subsidiary in the latest year shall not exceed 50% of the net profit of the parent company, and the net assets shall not exceed 30%.

The controlling shareholders of Bertrand, Yingtai bio and senxuan pharmaceutical respectively correspond to three listed companies of Baoan, Huabang health and Jingjing pharmaceutical. The same situation with the above three enterprises is also su axis shares, which rose only 2.91% on the same day.

Among them, the parent company of senxuan Pharmaceutical Co., Ltd. made a net profit loss in 2019. Even if the company turned from deficit to profit in 2020, it would take another two years for senxuan pharmaceutical to realize the spin off and listing. However, beiteri, Yingtai biology and Suxiang shares all account for too much in the overall performance of the parent company, which can not meet the requirements of split listing.

According to the calculation of the 21st century economic report, after excluding the four companies that could not be listed on the gem due to the spin off rules, only from the perspective of financial standards, 26 of the 36 enterprises listed at the selected level are expected to be listed on the gem, and another 4 companies are expected to be listed on the science and technology innovation board.

In the view of market participants, the reason why enterprises meet the conditions for listing on the gem in the selected tier market is that there is an indicator that "the net profit in the last two years is positive, and the accumulated net profit is no less than 50 million yuan" under the registration system.

"After a one-day general rise, there are still 17 selected layers whose stock market value is less than 1 billion yuan, temporarily out of touch with the science and technology innovation board. However, they can be listed on the gem without market value constraints. ". Beijing area securities companies new third board practitioners said.

However, the practitioners also said that the number of enterprises that can eventually realize the listing on the board will be less. "Whether some companies are in an industry that meets the criteria of" three innovations and four innovations "of the gem remains to be discussed. Some companies performed poorly in the first three quarters of this year and there are risks in their performance during the year.".

Zhou Yunnan believes that Lude medical and Wantong hydraulic have performed excellently and have initially possessed the potential of turning plate head concept stocks. "But which stock or several stocks can really become the leader of the concept stocks of zhuangboard in the end still needs to be based on texture, market preference as the letter, and the potential of turning board as the core, and only after a few more days of observation can we determine.".