This article comes from the public number:Alpha Workshop Research Institute (ID: alpworks), author: Linxiao Chen, from the title figure: vision China
I miss you on the evening of June 8th(SZ:002582)announcement, plans to pass its own funds In the form of repurchasing the shares of listed companies in the form of centralized bidding transactions.
The price of this repurchase is not more than 13 yuan/share, and the number of shares repurchased will be between 113 million and 226 million shares. If calculated based on the maximum number of repurchase, then I think you will repurchase it all at once 43.83% of the shares.
The most expensive stock in the world is Berkshire-Hathaway A(NYSE:BRK.A) operated by Buffett The price of one share is as high as 302,200 USD. The reason why its stock price is so high, in addition to the “share god aura”, more important is the management’s persistent repurchase plan over the years, showing that the repurchase has an obvious role in promoting the stock price.
Similarly, after thinking of you to announce a huge repurchase case, the next day’s stock price directly rose and closed, and once exceeded one million orders, this makes you want to be the most beautiful boy in the entire market.
However, this seemingly normal repurchase behavior is behind a related interest rebalancing.
“I miss you pie” and “baicao pie”.
In 2016, Shanghai ushered in the “hottest summer in history”. As soon as it entered August, Shencheng was enveloped by continuous high temperatures, and even extreme temperatures exceeding 40 degrees appeared. This high temperature continued into the Chinese snack industry.
On August 18, at the Ritz-Carlton Hotel, Pudong, Shanghai, I miss your chairman Shi Jubin and Qiu Haoqun, the chairman of Baicaowei, attending the M&A strategy conference “Together, Play Big”.
I think you are the first listed company of red dates in China, and also the main body of this merger and acquisition, and the acquired party Baicaowei is a famous Internet snack food brand. The collision between them is indeed “playing very big” .
At the time, this acquisition was regarded as your “broken circle”, and it will successfully enter the Internet snack industry through the new brand Baicao.
Although this acquisition did not ultimately help you miss the “break circle”, it has made a lot of money.
When you missed the purchase of Baicao Flavor, it only cost 960 million yuan, but in February this year it was 705 million US dollars(equivalent to 4.989 billion yuan) The price was sold to PepsiCo. I miss your net profit of over 4 billion yuan.
I really think that your acquisition of Baicao is extremely successful. In addition to the investment income of 4 billion yuan, it also contributed a lot of performance during the merger of listed companies. But in order to “marry” the smell of herbs, I think you are quite hard-working.
I missed you at the same time in order to successfully complete the merger and reorganization, in October 2016, two share issuances were carried out at the same time.
One time to buy Baicao-flavored assets, at a consideration price of 816 million yuan, an additional 50.65 million shares were issued to six parties including Hangzhou Yuequn, and its main shareholders were Qiu Haoqun and Cai Hongliang. A total of 144 million yuan in cash was paid, which amounts to a total of 960 million yuan.
Another purpose is to increase cash flow, I thought that your book cash flow was almost exhausted. In order to successfully complete the merger and acquisition, I miss you to 10 objects such as Shi Jubin, employee stock ownership plan, etc. A total of 59.59 million shares were issued with a consideration of 960 million yuan.
After completing the two share issuances, I think you have formed two major forces within you, namely the “I miss you school” represented by Shi Jubin and the “Baicao flavor school” represented by Qiu Haoqun.
“Baicaowei Pie” is equivalent to thinking of you as a 100% shareholder of Baicaowei. In the end, Qiu Haoqun and Cai Hongliang respectively acquired 7.63% and 6.44% of the equity of you, plus 144 million yuan in cash.
Obviously, the cash of 144 million yuan cannot reflect the value of the herb flavor, Qiu Haoqun andThe reason why Cai Hongliang accepts your quotation is because of the latter’s shares, but also for longer-term benefits.
After Bai Caowei was sold to PepsiCo, I thought you would get 5 billion yuan in acquisitions and make a net profit of 4 billion yuan, but for small shareholders Qiu Haoqun and Cai Hongliang who do not have control, it doesn’t really make much sense.
Actually, after the Baicao flavor was sold, Qiu Haoqun and Cai Hongliang chose to quit and miss you, becoming the only choice.
If you carefully read the announcement, you can find that when PepsiCo formally confirmed the acquisition of Baicao, Qiu Haoqun and Cai Hongliang had already started to reduce their holdings.
With the baicao flavor, he made a lot of money, and the “real” Shi Jubin should have given Qiu Haoqun and Cai Hongliang a slice of soup, so the huge repurchase plan was probably launched to accelerate their departure.
This kind of operation is both human and business.
No losers?
It is extremely sensitive to conduct repurchase and share reduction at the same time. However, when observing the nature of this repurchase, we will find that this may be a game without losers.
In order to acquire Baicao, “I miss you” was diluted a lot of shares. Specifically, the shares of founder Shi Jubin and deputy general manager Shi Juling were diluted from 38.25% and 2.77% to 30.59% and 1.65%, respectively, and their interests as shareholders were actually damaged.
Focus on this repurchase. If you want to operate according to the upper limit of the repurchase in the end, the overall circulating shares will be greatly reduced, and the total shares will be reduced from 516 million shares to 290 million shares. The founder Shi Jubin’s shares increased from 25.07% to 44.41%, even more than the proportion of shares before the acquisition of Baicao.
From the point of view of the amount, even if the repurchase is carried out according to the upper limit of repurchase, then you only need to spend 2.939 billion yuan, compared with the 4 billion yuan profit obtained from the sale of Baicao, there are still more than 1 billion yuan Profit surplus.
And after this battle, the founder Shi Jubin substantially consolidated his position in the company, and can refocus on the jujube business, while retaining more than 1 billion yuan in profits, and can also help internal competitors withdraw. Four birds.
I think your big repurchase is indeed kind, so that the participants almost took a sip of soup.
Rebalance of interests
Shi Jubin is a kind-hearted person with thick eyes and big eyes. He was born in a rural area in Henan. He sold steamed buns, fried dough sticks and worked as a carpenter in order to make ends meet. After more than 20 years of playing on the rivers and lakes, I finally spelled out that the listed company missed you and was called the representative of the farmer entrepreneur by the media.
His love for red dates can even be described as paranoid.
In 2017, Shi Jubin said in an interview: “Now there are many opportunities on the road to entrepreneurship, but if the purpose of entrepreneurship is just for wealth, then it may not be successful. Later I understood the truth, if you want to have money, You have to do things first, and you will be rich before you do it. Red dates are my life and the root of my life.”
In fact, Shi Jubin can completely choose not to carry out large-scale repurchase operations, and instead choose other methods to transfer cashRemain in the listed company and dominate by yourself. Such disputes over equity and interests are not uncommon in the stock market, but Shi Jubin chose to deal with it in the most kind manner.
If you really think that your current internal faction disputes are not handled properly, it is equivalent to moving the cake of the “Hundred Herbs”, which will trigger a deeper competition.
Even if the “Hundred Herbs” do not intend to compete for power, continuous reductions in shareholding will suppress the stock price for a long time, and it will also cause bad comments in the capital circle, which will be detrimental to future investment or M&A transactions. Impact.
After the announcement of the large repurchase case, the market gave a reaction to the daily limit. The outside world is sighing and thinking that your management has amazing courage, but more importantly, Shi Jubin, a farmer entrepreneur, used perfect capital means to resolve a hidden crisis of civil strife.
This article comes from the public number: < span class = "text-remarks"> alpha Institute workshop (ID: alpworks) , author: Linxiao Chen